central petroleum toronto listing

Central Petroleum sees better value in Toronto listing

http://www.businessspectator.com.au/bs.nsf/Article/Central-Petroleum-sees-better-value-in-Toronto-lis-JHC4W!OpenDocument&Click=

"Central Petroleum Ltd is progressing with its Toronto Stock Exchange listing plans as it grapples with what it sees as a failure of the local market to recognise value in its oil, gas and coal tenements in central Australia.

The company, which believes the share price reflects less than the value of its unconventional gas assets in the Pedirka and Amadeus Basins, is mounting a global campaign to find partners to develop underground coal (UCG) and gas to liquids (GTL) projects where it has a JORC target contained within its petroleum leases of 2,000 billion tonnes of coal.

It has commissioned an asset valuation report by Baker Investment Group to help seek partners for the commercialisation strategy.

The report focussed on UCG exploitation of intersected coal seams greater than 5m thick and shallower than 1000m deep.

Using a cash flow valuation assuming gas extracted at a rate of 200 PJ per annum based on 80 operating production wells at 2.5 PJ per annum, then on an annualised profit basis a project based on the Andado Shelf deposit would generate profits of $300 million per annum based on producing gas at $2/Gj and selling it at $3.50/Gj.

Using these assumptions and a project life of 10 years, the low case NPV would be $2.06 billion, Baker says.

The valuation is considered as a gross estimation based on very broad assumptions and publicly available information.

Baker says that although indicating an un-risked, prospective value of at least $2 per share for commercialising these assets using UCG, a significant amount of work is required to fine tune the numbers enough to create a project.

Further exploration work was needed to better define the extent and characteristics of the potential deposit. Hydrology and overburden characteristics needed to be better understood to be sure that UCG was feasible at the location and a trial would need to be undertaken to confirm gas quantity and quality and to finalise the field design parameters.

Central Petroleum recently commissioned Allied Resource Partners Pty Ltd to find one or more joint venture partners for what could be a $7.5 billion project within five years.

The company says the UCG technology has been proven by Linc Energy [at its sites in Australia and around the globe]. The technology provides access to coal, deep underground and by in-situ gasification produces a high quality synthesis gas (syngas) containing carbon monoxide and hydrogen.

The company has $9 million in cash."

Thursday closed 6.4 cents up 8.48%
94 buyers for 10,245,748 units
97 sellers for 11,571,092 units
5,547,635 shares traded 197 trades $343,528

And as of 5th July announcment drilling details for Surprise reentry are due within 2 weeks.

Maybe NEXT week would be nice? Yes!
Interest week ahead.