Central Petroleum acknowledges major issues Tue, 18 September 2012
Central Petroleum has acknowledged that several critical events have heavily influenced the company’s worsening financial performance during 2011–12.
These included the re-entry into Suprise-1 well, the unprecedented buying of Central Petroleum shares by Petroleum Nominees, in addition to challenges regarding the management of potential coal assets.
Yet the company remains optimistic in the potential of its 68 million acres of exploration areas amidst Chief Executive Officer Richard Cottee’s claim that “the stock market [has merely] appeared to have taken the view that the company has not advanced sufficiently.”
“I feel privileged to rise to the challenge,” he said.
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NT Department of Mines and Energy grant testing and exploration extensions Mon, 17 September 2012
The Northern Territory Department of Mines and Energy has approved a three-month extension of Central Petroleum’s extended production test being carried out at the Surprise-1 well, located in the Amadeus Basin, and has granted a 12-month extension to Falcon Oil & Gas for its exploration permits EP 76, 98, 99 and 117, located in the Beetaloo Basin in the Northern Territory.
According to Central Petroleum, the extension granted was necessary following satisfactory results after the well performed within prognosis, which has justified further testing.
In 2011, Hess Corporation acquired a 62.5 per cent working interest in EP 76, 98 and 117 from Falcon Oil & Gas and will drill five wells to explore and appraise the onshore tenures.
According to Falcon CEO Philip O’Quigley, the announcement brings certainty to an election drill date by Hess of no later than 30 June 2013 and enhances the attractiveness of a farmin deal of EP 99 to third parties.
CTP Price at posting:
57.5¢ Sentiment: Hold Disclosure: Held
