Proactiveinvestors Australia

Central Petroleum www.centralpetroleum.com.au/

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.

Tweet

 

Email

Email to a friend:

To:

Separate multiple addresses with commas.

From Email address:

Name: Please send me a copy Message:

Verification code

Enter the code from aboveRequired

Send

Central Petroleum mulls separate listing for Pedirka Basin coal assets

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.

Proactive Investors is a market leader in the investment news space, providing ASX “Small and Mid-cap” company news, research reports, StockTube videos and One2One Investor Forums.

Sign up to Proactive Investors

Comments from Proactive Investors readers

• Fill in your details below:

Verification Code

Reload image