Proactiveinvestors Australia

Central Petroleum completes Total farm-in over Queensland oil and gas permits

Thu, 09 May 2013 16:10:00 +1000

Central Petroleum (ASX: CTP) has completed a key farm-out with French supermajor Total that will accelerate exploration in three oil and gas permits in the Southern Georgina Basin, Queensland.

The farm-out agreement comprises a three stage, four-year exploration program over four permits will see €87.4 billion market cap Total funding the first US$48 million of expenditure during the Stage 1 exploration program.

Central will fund the next US$12 million in the program, which will consist of both seismic work and drilling.

The completed parts of the farm-out deal cover ATP909, ATP911 and ATP912 in Queensland while the agreement over EPA 132 in the Northern Territory will occur upon grant of the exploration permit.

Should the Stage 1 program be successful, Total has the option to commit a further US$130 million for Stage 2 and 3.

After completion of Stage 3, Total will assume operatorship for 90% of the area. Central will retain operatorship of the upstream activities on the remaining 10% of the area.

Central had $1.8 million in cash as of 31 March 2013.

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Central Petroleum rings in management changes

Wed, 08 May 2013 09:40:00 +1000

Central Petroleum (ASX:CTP) has rung in changes to senior management appointing Michael Bucknill as a general manager of exploration and Dr Robbert Willink as exploration adviser.

Bucknill was formerly general manager of exploration of Acer Energy.

Willink was a direct report to Origin Energy's (ASX:ORG) managing director until his retirement.

Central has a $78 million exploration program underway over the next 12 months, this included farm outs to Santos (ASX:STO) and Total.

Cash at the end of the March quarter stood at $1.79 million.

Central Petroleum to develop Surprise oil discovery

Tue, 26 Mar 2013 16:30:00 +1100

Central Petroleum (ASX: CTP) will now pursue development of its Surprise oil discovery in the Northern Territory after receiving a Proved Reserve estimate of 600,000 barrels of oil from its consultants.

Consultants Strategy Central also estimated Proved and Probable Reserves at 1.1 million barrels of oil and Proved, Probable and Possible Reserves at 2.1MMbbl.

The Reserves are based solely on the west side of the main fault interpreted at Sunrise while Contingent Resources of 5.85MMbbls are quantified to the east of the fault, offering the potential for additional Reserves.

Central plans to implement the recommendation that further drilling be carried out on both the east and west side of the Surprise fault.

Development costs are expected to be reduced as the infrastructure required for the extended production test is already in place.

Central will also consider debt financing and a partial farm-out as options for developing EP 115.

Surprise-1 had flowed between 200 barrels and 400 barrels of oil per day without pump during extended production testing. Higher production is expected with pumping.

Central had $2.1 million in cash as of 31 December 2012 and received $1.125 million from the Century arbitration matter in January 2013. Total and Santos (ASX: STO) will also contribute around $4.5 million cash once their respective farm-in deals become unconditional this quarter.

Central Petroleum executes farm out of South Georgina Basin permits to Total

Thu, 14 Mar 2013 16:20:00 +1100

Central Petroleum (ASX: CTP) has kicked off its Stage One exploration program with Total (FP:EN) after transferring some of its interests in three exploration permits in the South Georgina Basin, Queensland, to the French supermajor.

The company has also appointed chief executive officer Richard Cottee as its managing director and confirmed acting chairman Andy Whittle as its chairman.

Central was awarded the Authorities to Prospect for ATP 909, 911 and 912 today. These permits are covered by its agreement with Total.

Total is committed to fund 80% of exploration and appraisal costs over four years to which the fifth largest oil company in the world has committed the first US$48 million of expenditure for stage one after which Central will fund the next US$12 million.

Investment by the joint venture is US$60 million for stage one, and, at Total’s election, US$130 million for stages two and three depending on exploration success.

The permits, along with EP(A)132 in the Northern Territory, are prospective for shale gas with the target Arthur Creek shales having indicative thickness of around 300 metres and Total Organic Carbon in the range of 2% and 16%.

Central had $2.1 million in cash as of 31 December 2012 and received $1.125 million from the Century arbitration matter in January 2013. Total and Santos (ASX: STO) will also contribute around $4.5 million cash once their respective farm-in deals become unconditional this quarter.

Central Petroleum maps out additional oil potential at Surprise discovery

Tue, 12 Feb 2013 15:40:00 +1100

Central Petroleum (ASX: CTO) has completed technical analysis and investigations that indicate the presence have multiple high reward potential zones within its Surprise oil discovery in the Amadeus Basin, Northern Territory.

Data used for this study included extended production testing of Surprise-1, 3D seismic, reservoir modelling and pressure transient analysis.

Central now believes the lowest known oil is deeper than originally expected with the oil column thicker than previously thought.

This serves to improve the estimated development timeframe and economics of the proposed development.

It added there may be a structural and/or stratigraphic component to the trap along the ridge to the east of the structure, where the Stairway reservoir is seismically interpreted to pinch out into salt.

The expanded oil column allows for another well location on the east side of the fault. Further analysis is underway to determine what additional work is required to confirm this proposition. Such work may be carried out after Surprise comes into production.

Regional work has also identified the Horn Valley Siltstone (HVS), located stratigraphically below the Surprise reservoir and extending for thousands of square kilometres, as the regional oil source for the known oil discoveries in the North-Western Amadeus Basin.

3D seismic data indicates the HVS thickens coming off the Surprise structure. Our interpretation is that basinal areas straddling the Surprise structure may be rich, highly prospective areas for a HVS shale oil/gas play.

Central will allocate more resources to define this potentially large unconventional play over time.

It may also test the lower formations draped over salt when the Surprise development commences.

Surprise

Since the Surprise-1 oil discovery started flowing oil on 20 June 2012, Central has been carrying out extended production testing to gain a better understanding of the find.

Flow rates have stabilised between 200 barrels and 400 barrels per day without pump and the company expects final production rates to be higher through the use of pumping.

Encouragingly, water produced during the production test remained below 10% and by the end of the test, had fallen to 3.2%.

Early interpretation of 3D seismic has also suggested that the structure could support more wells.

Central Petroleum buoyed by Surprise oil flows

Mon, 19 Nov 2012 10:10:00 +1100

Central Petroleum (ASX:CTP) has established stabilised test flows at its Surprise discovery, potentially paving the way for commercial production.

Extended production testing at Surprise saw stabilised flows of 200-400 barrels of oil per day without pump. Early reserve potential indicated by 3D seismic work also suggests the scale of the Surprise structure could support several production wells.

The project economics would change if the production reaches over 1,000 bpd and Central would analyse further potential wells indicated by the 3D seismic, which showed additional fault lines not seen in the 2D shoot.

It could also coordinate development with Santos' Mereenie field.

Central is looking to test unconventional prospectivity in the next well and is likely to book its maiden Surprise reserve in the first quarter of 2013.

Central is expecting to assess the organically rich Horn Valley Siltstone (HVS), which occurs 50m below the Surprise production horizon and known regionally to contain organically rich shales and wet gas.

It will core and stress test an additional 400 metres at both HVS as well as the Bitter Springs, to test for rock properties prior to completion of the Surprise production horizon.

Central retains a 100% interest in the Surprise discovery area, which is part of the 2.4 million acres in EP115 that was not part of the recently announced farm-out joint ventures with Santos and Total.

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Central Petroleum strikes again with multi-million deal with Total S.A.

Tue, 06 Nov 2012 09:10:00 +1100

Central Petroleum (ASX:CTP) has struck another farm in agreement, this time with $49B capped French energy company Total S.A. (NYSE: TOT) for the exploration of 6 million acres in the Southern Georgina Basin.

Total is committed to fund 80 percent of exploration and appraisal costs over four years to which Total has committed the first US$48 million of expenditure for stage one after which Central will fund the next US$12 million.

Investment by the joint venture is US$60 million for stage one, and, at Total’s election, US$130 million for stages two and three depending on exploration success.

Managing director Richard Cottee has not wasted time attracting significant investment into the company's tenements.

In October, he announced that Santos would fund exploration in the company's 13 permit/application areas in the Amadeus and Pedirka Basins in central Australia by spending an initial $30 million.

In today's deal, the agreement covers four highly prospective areas in the vicinity of recent discoveries in the Southern Georgina Basin in central Australia, in EP(A)132 in the Northern Territory and ATP(A)909, ATP(A)911 and ATP(A)912 in Queensland.

It will provide capital for a fully funded exploration programme while enabling Central to retain a significant interest in the nearly 6 million acres we hold in the Southern Georgina Basin.

It will also retain Central's 100% interest in and 100% access to the cash flow from its Surprise discovery.

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Central Petroleum and Santos in A$150M JV to explore Amadeus and Pedirka Basins

Tue, 02 Oct 2012 10:10:00 +1000

Central Petroleum (ASX: CTP) has secured Santos (ASX: STO) as a joint venture partner in a deal which could see up to A$150 million in exploration spending on 13 permits and application areas in the Amadeus and Pedirka basins.

Under the agreement, which provides a clear and funded pathway for the exploration and exploitation of the permits, Santos will spend an initial A$30 million in the first stage followed by A$60 million in the second and a further A$60 million in the third stage to earn up to 70% in the areas, which cover nearly 80,000 square kilometres.

Santos will assume operatorship of the fields during exploration and in the event that they are developed.

Central will be free carried through each of the exploration stages, freeing the company from having to raise capital to meet its exploration commitments.

It retains a 100% interest in more than 2 million acres in EP115 in the Amadeus Basin including the area around the Surprise discovery.

The Company also has exploration rights over its remaining holding of 38 million acres (153,780 square kilometres) in the Amadeus, Southern Georgina, Wiso and Pedirka basins.

The Amadeus Basin is the most mature and proven of Central’s assets as confirmed by the recent Surprise oil discovery and current production while the Pedirka contains extensive organic rich shale.

Santos is a leading Australian oil and gas player with a market capitalisation of more than A$10 billion with the financial capability and technical expertise to rapidly develop any commercial discoveries.

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Central Petroleum to announce key farm out agreement

Fri, 28 Sep 2012 11:00:00 +1000

Central Petroleum (ASX: CTP) is poised to announce a potential farm-out agreement and has placed its shares into pre-open.

The company has enjoyed a major success with its Surprise-1 well in the Amadeus Basin, Northern Territory, with oil flows of 380 barrels per day during testing.

This has led to a three month extension of the well’s extended production testing and an application for a production licence over the Surprise field.

Extended production testing will allow Central to estimate reservoir volume and confirm reserves for field development; confirm long-term reservoir performance; pilot future facility designs during actual field development; and obtain additional production-related data, such as water cut, sand production, and well deliverability.

Central is considering full field development and said earlier this month that it was in discussions with a number of large potential joint venture partners.

Independent consultants RPS Energy Pty Ltd have estimated that Surprise-1 may access between 0.5 million and 2 million barrels of in-place oil.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Tuesday 2nd October 2012.

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Central Petroleum focuses on Surprise oil discovery, surrenders geothermal exploration permits

Mon, 28 May 2012 15:20:00 +1000

Central Petroleum (ASX: CTP) has relinquished its 3 geothermal exploration permits in order to focus on its core petroleum exploration activities in the Amadeus and Pedirka basins.

The company said that keeping the permits would have required spending A$11 million over 4 years, including A$7 million in the first 2 years on its geothermal commitments.

It added it would rather use its funds to follow up on the Surprise oil discovery in the Amadeus.

Dalton Hallgren, Central’s acting chief executive, said the relinquishment of the geothermal permits allowed the company to focus on the assets that are expected to deliver the best return on investment.

“From both a financial and management perspective, the expenditure required to advance these geothermal assets was not considered in the best interests of the Company and its shareholders.”

Attempts to find both farm-in partners and buyers for the permits had not resulted in any interest.

The Surprise-1 discovery has paved the way for Central to enjoy early oil production and cash flow.

Extended production testing is expected to start soon – and run for between 6 to 12 months, while the potential drilling of an appraisal well on the discovery are also on track with the company confirming that it had settled a A$11 million share placement.

Besides delivering early cash flow, the testing will allow Central to fully clean up the well, demonstrate its sustained flow capability and determine the best flow rate without damaging the formation.

Surprise oil discovery

The Surprise-1 horizontal well flowed light sweet crude at a maximum sustained rate of 380 barrels per day (bpd) with low water cut, marking the first major onshore oil flow in the Northern Territory in nearly 50 years.

It has served to validate Central's long-standing belief in the petroleum prospectivity of central Australia and upgrades the commercial oil potential of its large Western Amadeus Basin acreage.

At sustained production rates of about 300bpd, Surprise-1 could generate revenue of US$1.16 million (A$1.12 million) per month at current Tapis spot oil prices of about US$129 per barrel.

Further appraisal of the discovery would allow Central to delineate its extant and determine its productivity and resources present, which RPS Energy had previously placed at between 0.5 and 2 million barrels of in-place oil.

This includes 3D and 2D seismic over the Surprise field and possibly the drilling of a follow-up well, which would allow the company to more accurately assess the find and double production and cash flow.

Further upside likely if its investigation into the unconventional shale oil and gas potential of the Horn Valley Siltstone bears fruit.

New leadership

To top it off, the company has also signed up former Queensland Gas Company boss Richard Cottee as its chief executive officer and a director elect.

Cottee had joined QGC in 2002 and had guided the company, which had floated at A$0.20 in 2000, to its eventual acquisition by BG for A$5.75 per share, or A$5.7 billion.

He is expected to focus on farm-out agreements that will fast track development, unlocking the value of the company’s large landholding.

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Central Petroleum director shows confidence, increases shareholding by 400,000 shares

Fri, 18 May 2012 13:00:00 +1000

Central Petroleum (ASX: CTP) director Andrew Whittle has picked up an additional 400,000 shares on the market for A$39,600, or A$0.099 per share.

The acquisition by his superannuation fund comes days after the company appointed former Queensland Gas Company managing director Richard Cottee as its chief executive officer.

Cottee, considered one of the early pioneers of Australia's coal seam gas industry, joined QGC in 2002 and guided the company, which had listed in 2000 with shares valued at A$0.20, into a major producer of coal seam gas in Queensland.

QGC was subsequently acquired by British Gas in 2008 for A$5.75 a share in cash.

Central is also putting into place appraisals of its Surprise-1 oil discovery, which has gone a long way in affirming its long held belief in the petroleum prospectivity of the Amadeus Basin, Northern Territory.

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Central Petroleum appoints Richard Cottee as CEO elect

Tue, 15 May 2012 12:20:00 +1000

Central Petroleum (ASX:CTP) has appointed ex Queensland Gas Company luminary Richard Cottee as chief executive officer and a director elect.

In a boost for the company, given his track record at QGC, Cottee is likely to focus on farm-out agreements that will fast track development.

In addition he will look to unlock the value of Central's large landholding, reputed to be one of the largest exploration acreage packages in Australia.

Recently, Central's Surprise-1 well flowed oil to surface in the Northern Territory which was the first since the Mereenie oil field in the mid-1960s. It also might be the first Australian onshore horizontal well that has produced oil-to-surface.

The Surprise discovery had seen investors view Central's acreage in central Australia in a new light.

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Central Petroleum in pre open ahead of announcement on management personnel changes

Tue, 15 May 2012 09:30:00 +1000

Central Petroleum (ASX: CTP) has been granted a trading halt by the ASX pending an announcement on changes to the company’s key management personnel, with the company placed in pre-open.

No further details regarding the changes were released.

Late last month Central revealed it is investigating options to spin off its coal assets in the Pedirka Basin, Northern Territory, to maximise shareholder value.

The company said that while the assets had potential to be highly valuable, their poor market visibility thanks to its focus on oil and gas meant the market currently assigned little value to them.

The halt will last until the earlier of an announcement being made available to the market, or the opening of trade on Thursday 17 May.

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Central Petroleum served with draft statement of claim from Petroleum Nominees

Mon, 30 Apr 2012 10:40:00 +1000

Central Petroleum (ASX: CTP) has been served with the application and draft statement of claim by Petroleum Nominees seeking to overturn the company’s A$11 million placement.

Petroleum Nominees is seeking leave to pursue the claims on the company’s behalf.

Should this be granted, it plans to name chairman Dr Henry Askin; non-executive directors Richard Faull and William Dunmore; former managing director John Heugh; and the various entities that were part of the placement announced on 4 April as defendants.

Under the draft statement of claim, Petroleum Nominees is calling for the company to buy back the shares issued under the placement at the price paid for them and for Central to consider any proposal from Petroleum Nominees for the issue of shares as well as any other proposal and to elect members of the board.

Should this not be possible, Petroleum Nominees is claiming damages for breach of directors duties together with interest and costs.

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Central Petroleum mulls separate listing for Pedirka Basin coal assets

Fri, 27 Apr 2012 10:05:00 +1000

Central Petroleum (ASX: CTP) is investigating options to spin off its coal assets in the Pedirka Basin, Northern Territory, to maximise shareholder value.

The company said that while the assets had potential to be highly valuable, their poor market visibility thanks to its focus on oil and gas meant the market currently assigned little value to them.

It added that realising the value of the coal assets would require a dedicated focus that would likely be achieved only through a separate listing with its own board of directors, experienced coal management team and funding capabilities.

This would still provide Central shareholders with exposure to the coal assets through a retained equity interest.

It would also allow the company to focus on its core oil and gas assets.

Central’s coal stratigraphic drilling program had resulted in at least 1 well intersecting 75 metres of coal including a 18 metre coal seam while previous independent reports have estimated the total coal resources across its acreage at between 635 billion to 865 billion tonnes.

The company had previously said it planned to explore and develop its coal assets in joint venture with partners managing and funding 100% of exploration and bankable feasibility studies before funding its participating interest at the project funding stage.

It added that it had received interest from various groups about its Pedirka coal assets with coal mining and beneficiation; coals to liquids; and underground coal gasificiation options raised as possible commercialisation options.

Further details of the coal restructure will be provided to the market in the near future.

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Central Petroleum in pre open pending announcement on legal proceedings

Thu, 26 Apr 2012 15:30:00 +1000

Central Petroleum (ASX: CTP) has been granted a trading halt by the ASX ahead of an announcement relating to Petroleum Nominees Pty Ltd’s start of legal proceedings on 11 April 2012.

Petroleum Nominees attempt to place an injunction on the company’s A$11 million placement was dismissed by the Supreme Court of Queensland.

The court also ordered Petroleum Nominees to file and serve an application for leave under section 237 of the Corporations Act and for further directions. Should leave be granted, it should then serve Central Petroleum a draft statement of claim setting out both the claims it makes on its own behalf in the proceeding and the claims it seeks to pursue on the company's behalf.

Central’s shares will remain in pre-open until the earlier of an announcement to the market or the commencement of trading on Monday 30 April.

Meanwhile, the company had on Tuesday 24 April said that a request by shareholders representing 6.38% of its total shareholding to hold a general meeting for the replacement of three of the company’s directors – chairman Dr Henry Askin and non-executive directors Richard Faull and William Dunmore – was valid and that it would seek to convene a general meeting.

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Central Petroleum strengthens board with two former petroleum executives

Thu, 26 Apr 2012 12:50:00 +1000

Central Petroleum (ASX: CTP) has appointed 2 experienced petroleum executives, Andrew Whittle and Bruce Elsholz, as directors of the company.

Whittle has over 42 years of technical and managerial experience in the petroleum exploration and production sector and is deemed an expert in the Otway Basin.

He was closely involved in the exploration that led to the identification and discovery of the Thylacine gas field in the Otway Basin as well as promoting Pexco into Indonesian deepwater exploration.

Whittle spent 21 years with several affiliates of ExxonMobil in Australia with his final post as geological manager for Esso Australia before leaving to spend 5 years as exploration manager for GFR Resources.

He also has over 15 years experience through PetroVal Australia, of which he is a founding director, and his private consulting company Sheristowe.

Whittle is also a director of Bass Strait Oil and Malaysia’s Bumi Armada Sdn Bhd.

Elsholz is a chartered accountant with about 35 years experience in the upstream oil and gas sector.

He has held senior financial and commercial roles with a number of exploration and production companies in Australia and Canada. These include Hudsons Bay Oil and Gas Company, Hartogen Energy Limited, Command Petroleum Limited, Coplex Resources NL and Otto Energy Limited.

He also has more than ten years experience as Company Secretary with a number of ASX listed entities.

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Central Petroleum awards 3D seismic contract, data to assess Surprise oil find in the Amadeus Basin

Fri, 20 Apr 2012 09:20:00 +1000

Central Petroleum (ASX: CTP) has awarded Terrex Seismic the contract to shoot 82 square kilometres of 3D seismic over the Surprise oil discovery in the Amadeus Basin, to more accurately assess the find.

Line clearing is scheduled to start soon with seismic acquisition to be carried out in mid-May 2012 before the start of extended production testing on the Surprise-1 well.

Processing of the 3D is expected to be completed by early August 2012 and the resulting data is expected to play a key role in delineating the extent of the Surprise discovery and determine its productivity and resources present.

RPS Energy had previously estimated in-place oil resources of between 0.5 and 2 million barrels at Surprise.

The seismic could also aid in locating a follow-up well, which could double production and add further to the company’s knowledge of the field.

Central is also planning to shoot another 60 kilometres of 2D seismic close to the 3D seismic to further define a structure similar to the salt diapir-induced anticline at Surprise as well as 132 kilometres of 2D seismic to in the northern Pedirka Basin to firm up the Pellinor lead.

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Central Petroleum in talks with potential farm in partners for central Australian acreage

Wed, 18 Apr 2012 13:00:00 +1000

Central Petroleum (ASX: CTP) has confirmed that it has received an unprecedented amount of genuine interest from potential farm-in partners for its massive acreage across central Australia and is currently carrying out several negotiations.

Company chairman Dr Henry Askin said in a letter to shareholders that while it was eager to finalise farm-in agreements for some of its acreage, it would not proceed with any agreement that undervalued its potential.

It added that this potential was now being recognised by the international oil and gas industry following the Surprise oil discovery in the Amadeus Basin, Northern Territory and that the size of its acreage meant that it was well placed to capitalise on current market opportunities.

Central had previously stated that it would accelerate and promote farm-in opportunities to spread and reduce risk.

Exploration

Askin added the company is now planning to shoot 3D and 2D seismic over the Surprise structure in EP 115 from the middle of next month with processing of the 3D seismic expected to be completed by early August.

This will be followed by the start of the extended production test for the Surprise-1 well, which is also expected to occur in May.

The Surprise-1 horizontal well flowed light sweet crude at a maximum sustained rate of 380 barrels per day (bpd) with low water cut, marking the first major onshore oil flow in the Northern Territory in nearly 50 years.

It has served to validate Central's long-standing belief in the petroleum prospectivity of central Australia and upgrades the commercial oil potential of its large Western Amadeus Basin acreage.

At sustained production rates of about 300bpd, Surprise-1 could generate revenue of US$1.16 million (A$1.12 million) per month at current Tapis spot oil prices of about US$129 per barrel.

Further appraisal of the discovery would allow Central to delineate its extant and determine its productivity and resources present, which RPS Energy had previously placed at between 0.5 and 2 million barrels of in-place oil.

Central noted it was working on a 40 kilometre shortcut access road from the well to the main Kintore bypass road, which the company and the Northern Territory State Government were working on improving into an all weather road.

The company added the recent settlement of an A$11 million institutional placement meant it was funded through the planned appraisal work at Surprise as well as properly assessing and finalising ongoing farm-in discussions.

On the company’s dismissal of former managing director John Heugh, Askin said the decision was not taken lightly by the board and was only pursued after other options had been explored.

Central added that while it would vigorously defend itself against Heugh’s legal proceedings disputing the termination of his employment, its legal and company secretarial teams was handling this issue with very minimal interference on its normal exploration and development activities.

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Central Petroleum: injunction application against company dismissed

Tue, 17 Apr 2012 15:30:00 +1000

Central Petroleum (ASX: CTP) has advised that the Supreme Court of Western Australia has dismissed former managing director John Heugh’s injunction application.

Heugh was ordered by the court to pay the company’s costs of the application.

The injunction was aimed at preventing Central from calling a general meeting to consider a motion to remove Heugh as a director of the company and from moving such a motion pending his legal action disputing the termination of his employment.

Central Petroleum responds to press speculation regarding Hess Corporation

Mon, 16 Apr 2012 12:30:00 +1000

Central Petroleum (ASX: CTP) has clarified press speculation regarding the selection of Hess Corporation as its preferred farm-in partner for its oil and gas exploration projects in the Northern Territory.

“Central Petroleum Limited has become aware of certain press speculation in which Hess Corporation is stated to be a preferred farm-in partner for the company.

Hess Corporation is a large internationally recognised oil and gas company with interests onshore Australia, however, the company currently has no preferred farmin partners.

Any farm-ins which the company may consider will take into consideration, among other things, the terms of the farm-in offered and the financial and other capabilities of the potential farminee.”

Central Petroleum: Injunction application sought by John Heugh

Fri, 13 Apr 2012 15:10:00 +1000

Central Petroleum (ASX: CTP) has received an application by former managing director John Heugh seeking an injunction in the Supreme Court of Western Australia.

The injunction is to prevent the company from:

- taking steps to call a general meeting to consider a resolution that Heugh be removed as a director of the company; or

- from moving such a resolution at any general meeting pending the hearing and determination of Heugh’s legal action disputing the company's termination of his employment.

Central Petroleum said it will defend and oppose the injunction application vigorously.

Central Petroleum set to gain more admirers with shale gas and conventional acreage

Thu, 12 Apr 2012 09:46:00 +1000

With activity in shale gas hotting up in Australia, Central Petroleum has not yet shared in the re-rating. However, with a new stance on farm out and de-risking and an acreage position of 295,000 sq kms across the Amadeus, Pedirka, southern Georgina and Wiso Basins, CTP is poised to come in from the cold.

Central Petroleum in trading halt regarding institutional placement

Wed, 11 Apr 2012 10:00:00 +1000

Central Petroleum (ASX: CTP) has been granted a trading halt by the ASX pending an announcement regarding the notification of a court injunction relating to the settlement of an institutional placement.

The institutional placement, announced earlier this month, sought to raise $11 million through the issue of 130 million shares at $0.085 per share.

Importantly, the placement was being conducted in a single tranche under the company’s 15% limit permitted under the listing rules without shareholder approval.

Settlement of the placement was scheduled for today.

Shares in Central will remain in pre open session state until the earlier of the release of an announcement to the market or the commencement of normal trading on Friday April 13.

Central Petroleum well supported by investors, raises A$11M for Surprise oil appraisal

Wed, 04 Apr 2012 10:00:00 +1000

Central Petroleum (ASX: CTP) continues to receive strong support from investors, raising A$11 million to fund appraisal of its Surprise oil discovery in the Amadeus Basin.

This will allow the company to carry out further appraisal and possibly drilling work on the Surprise discovery and give it the working capital to assess and finalise its ongoing farm out discussions.

The placement of 130 million new shares priced at A$0.085 each – a 6% discount on its 5-day volume weighted average price – was made to institutional investors under the 15% limit and managed by Patersons Securities.

Participants in the placement will also receive on 1 free attaching three-year unlisted option exercisable at 12.5 cents, for every two new shares subscribed. This will be granted following shareholder approval at a general meeting to be held shortly.

The Surprise-1 horizontal well flowed light sweet crude at a maximum sustained rate of 380 barrels per day with low water cut, marking the first major onshore oil flow in the Northern Territory in nearly 50 years.

Further appraisal of the discovery would allow Central to delineate its extant and determine its productivity and resources present.

An engineering report by RPS Energy had indicated Surprise-1 could access initial in-place oil of 0.5 and 2 million barrels.

A successful development will also give the company a source of cashflow to target further prospects in its portfolio.

Central Petroleum in pre open ahead of capital raising announcement

Mon, 02 Apr 2012 09:00:00 +1000

Central Petroleum (ASX: CTP) has been granted a trading halt by the ASX pending the release of an announcement regarding a capital raising, with the company placed in pre-open.

While the company did not specify where the funds would be allocated, Central Petroleum has been making progress towards oil testing of its Surprise-1 well in the Amadeus Basin.

The Surprise-1 horizontal well flowed light sweet crude at a maximum sustained rate of 380 barrels per day with low water cut, marking the first major onshore oil flow in the Northern Territory in nearly 50 years.

The halt will last until the earlier of an announcement being made available to the market, or the opening of trade on Wednesday 4 April.

Central Petroleum valued at more than double current share price by broker

Wed, 28 Mar 2012 16:00:00 +1100

Central Petroleum (ASX: CTP) has received a Speculative Buy recommendation and a price target of A$0.20 per share, more than double its current share price, from a broker.

The following is an extract from the report.

Event

- CTP has announced the termination of Mr John Heugh as CEO of CTP (remaining as non-executive director) and the appointment of acting CEO Dalton Hallgren formerly COO. CTP will be undertaking a search for the permanent CEO immediately.

- CTP have also announced in an operations update that new initiatives have been announced to expedite and promote farm-out opportunities so as to spread and reduce risk with encouraging results to date and for the right deal they no longer have a requirement to be operator of their projects.

Comment

- The announcement of a new CEO is key development for CTP and brings increased flexibility as the company pursues potential farm out opportunities and looks to sell down CTP’s high asset positions.

The ability to transfer operatorship of CTP’s projects is also a significant step to attract a suitable farm in partner.

- CTP has high acreage positions and high retained interests of up to 100% which provides a good opportunity to secure funding via farm out for their drilling program.

As a reminder CTP holds a significant acreage position of 295,000km2/50m acres across the Amadeus, Pedirka, southern Georgina and Wiso Basins in Central Australia, prospective for conventional and unconventional oil & gas, Helium and coal for UCG/GTL and coal mining potential.

CTP has commissioned a number of independent assessments across its non-conventional assets which estimate a mean prospective recoverable resource of some 14bnboe.

- CTP has drilled 5 conventional wells and recently announced that oil was successfully flow tested at the Surprise 1 well in the Amadeus Basin at 380bopd. Next steps are extended production test & 3D Seismic in April/May 2012.

- Petro Frontier (TSX:PFC.TXV) have acreage in the Georgina basin and have mobilised a rig to the southern Georgina Basin and drilled two horizontal wells targeting shale. Early results have shown hydrocarbons with fraccing/testing and completion for both scheduled for April 2012.

- Activity in shale gas in Australia is high with large oil companies active in the region targeting companies with shale gas assets: Hess, Conoco Phillips, BG, Rodinia and Petro Frontier have all farmed into acreage.

Share price uplift has occurred for the following companies with shale gas assets: Beach (BPT), Senex (SXY) and Drill Search (DLS) (Cooper Basin), Buru Energy (BRU) and New Standard Energy (NSE) (Canning Basin).

- CTP stock price has not been a beneficiary of this activity, but with the removal of the impediment to farm-out and operatorship, we believe there is now a better opportunity for the company to realize the full potential of its unconventional oil & gas assets and a farm-out will offer a less dilutive funding option for CTP and better look through value to the underlying asset value.

- We believe CTP is significantly undervalued by the market and currently trades at a value of ≈$1.30/acre (current EV/acre) vs peers at above $80/acre (BRU, NSE). Farm-out transactions in shale gas assets in the Georgina//Canning basins have averaged $17/acre.

CTP is targeting dual listing on TSX H12012 to improve the rating of the stock. We re-iterate the Speculative Buy rating on CTP and Price target of A$0.20ps.

- Key Catalysts: Farm out of acreage; Well results; TSX listing/ Key Risks: Exploration risk, funding risk and commercialization.

Central Petroleum: speculation and clarification response

Wed, 28 Mar 2012 10:00:00 +1100

Central Petroleum (ASX: CTP) has this morning responded with a speculation and clarification statement to the ASX.

The company stated: 'Central Petroleum has become aware of certain public statements made whereby various shareholders will be seeking to requisition the Company to call and arrange a general meeting for the replacement of three of the company’s four directors.

'Namely, the replacement of Dr. Henry Askin (Chairman), Mr. Richard Faull (Non-Executive Director) and Mr. William Dunmore (Non-Executive Director) with Mr. Peter Cockcroft, Mr. John Jetter and Mr. Colin Goodall.

'The company confirms that it has not received a requisition to call and arrange a general meeting.'

Central Petroleum making progress towards Surprise-1 oil testing in the Amadeus Badin

Tue, 27 Mar 2012 13:40:00 +1100

Central Petroleum (ASX: CTP) is close to completing the Kintore bypass road required to support the planning Surprise-1 extended production test in the Amadeus Basin, Northern Territory.

Planning for the test, including the storage tank lease, is also well underway.

The Surprise-1 horizontal well flowed light sweet crude at a maximum sustained rate of 380 barrels per day with low water cut, marking the first major onshore oil flow in the Northern Territory in nearly 50 years.

Its success serves to validate Central’s long-standing belief in the petroleum prospectivity of central Australia, expanding the commercial oil potential of its Western Amadeus Basin acreage.

The extended production test will give the company an idea of a stabilised flow rate, giving it a better base to plan a full scale development of the Surprise field.

This will be further enhanced by the planned 3D and 2D seismic programs over the field in EP 115, which along with the 2D seismic over the Pellinor Reef play in EP 97, are at the final design stage.

Central added it aimed to acquire the 3D seismic over Surprise before the test began to avoid seismic interference.

It is also accelerating efforts to attract farm-in partners to spread risk and reduce expenditure.

Central Petroleum: Dalton Hallgren moves to Acting Chief Executive Officer

Mon, 26 Mar 2012 10:00:00 +1100

Central Petroleum (ASX: CTP) has made some key personnel changes. John Heugh is no longer the Chief Executive Officer, but he remains a non-executive director of the company.

Dalton Hallgren will move from his role as Chief Operating Officer to the role of Acting Chief Executive Officer.