ann: more cash to drill with, page-5

just for any newbies PXA was taken over by BG in December at $18 million investment. A bit of the story from "the speculator" 3rd December 2008
http://money.ninemsn.com.au/article.aspx?id=678744

"The investment status of our gas-to-liquids hopeful, Central Petroleum (CLP) has been upgraded with British Gas’s successful takeover of QGC (Exploration) Ltd, which in turn has acquired Central’s major joint venture partner, the unlisted Petroleum Exploration Australia (PXA).

Central’s managing-director John Heugh confirmed this week that PXA could spend as much as $170 million if it maintained its 20% interest in nine exploration permits and another 13 permit applications on the venture’s central Australian oil and gas prospects. PXA now has an ultimate parent with deep pockets.

While PXA is not obliged to retain a 20% interest in every permit, for the British Gas subsidiary to buy PXA gives enhanced credence to Central’s hopes of finding sufficient gas within its 270,000 sq km of tenements covering the Northern Territory’s Amadeus/Pedirka basins to establish a gas-to-liquids plant.

For PXA to retain up to a 20% interest in all of Central’s operated permits, it is required to fund 40% of the first $3 million of seismic works and 40% of the first three wells in each permit, subject to the grant of the permit concerned. Average well costs for conventional drilling to date in the joint venture have been close top $5.5 million each, including rig mobilization and road building.

The joint venture recognizes that each $2 million increment of spending on non-conventional drilling, such as coal-bed-methane (CBM) wells restricted to a 1000-metre depth qualification, will be counted as one well in the three wells plus seismic works required to maintain PXA’s 20% interest.

Based on a conservative average well cost of $4 million, and if all permit applications are granted Central estimates that cumulative expenditure required by PXA to retain a 20% interest in each permit would be 40% of $420 million, or $170 million. Subject to certain caveats, PXA may retain either a 6.66% interest (one well plus seismic works) or 13.3% (2 wells plus seismic).

The announcement on Monday left Central Petroleum’s shares unchanged at 8.4c, at which price the company carries a market capitalization of $20.4 million. (Last week Central closed at 8.4c after trading over the week up from a low of 7.3c to a high of 9.5c for a modest turnover of 408,000 shares. Remaining cash at the end of the September quarter stood at $8.2 million. Central confirmed last week a further $5 million (including interest) had been paid to it by PXA in settlement of outstanding cash calls.

The joint venture plans to suspend field operations until after the Northern Territory’s “wet” season ends (probably until the end of the March quarter), following recent heavy rains over its operating areas."

So any news like this means we are getting closer to you know where. Expect some interesting developments soon.