Central Petroleum (ASX: CTP) holds an extensive package of prospective acreage of over 270,000 km2 in central Australia, which is predominately in the Pedirka Basin, along with 25,000 km2 in the Southern Georgina Basin.
Apart from conventional gas potential, the company has had independent estimates of over 10,000 trillion cubic feet in UCG "syngas" prospective recoverable resources.
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.