NEW BOARD WILL PROVIDE MOMENTUM FOR CENTRAL: PALMER
Mining executive Clive Palmer has outlined to shareholders of ASX-listed junior exploration and production company Central Petroleum Limited (ASX-CTP) how proposed changes to its board of directors will enable the company to achieve commercialisation.
Mr Palmer, who is Central’s largest shareholder through his company Petroleum Nominees Pty Ltd (PNPL), has urged shareholders at an extraordinary meeting on June 22 to dump Central’s board and reinstate founder John Heugh as Managing Director.
He has proposed removing all five Central directors and replacing them with three of his senior team from Mineralogy Pty Ltd – Bill Schoch, Raymond Tam and Baljeet Singh.
“The three new directors proposed by PNPL to work with a reinstated John Heugh as Managing Director bring a wealth of financial, commercial and corporate acumen and experience,” Mr Palmer said.
“They possibly represent one of the world’s best group of deal making directors in this regard. Mr Heugh’s technical and general management credentials are well established and he has the pioneering spirit and vision to take the company forward.”
Mr Tam is a Hong Kong-based former Vice President of JP Morgan and is a veteran fund raiser and business development expert backed by impeccable credentials.
“While with JP Morgan, Raymond was the main facilitator of the $3 billion financing for Tata Motors’ acquisition of Jaguar and Landrover, the $800 million KKR acquisition of Oriental Brewing in South Korea and other stellar deals,” Mr Palmer said.
Ms Singh, the Palmer group lawyer, is Director-Legal at Mineralogy Pty Ltd.
“Baljeet is experienced in oil and gas operations in Papua New Guinea and throughout Australia including with Palmer Petroleum in oil and gas in the Gulf of Papua,” Mr Palmer said.
Mr Schoch has worked with the Mineralogy group of companies for more than 30 years.
“Bill has extensive experience in the commercialisation of natural resource assets including oil and gas projects with Palmer Petroleum, which has spent 40 million Kina in JV seismic programs,” Mr Palmer said. “This program involves major state-owned Chinese companies.”
Mr Heugh said Mr Palmer had achieved some enviable successes in the resources sector.
“This includes the purchase of the $6 billion Palmer nickel refinery from BHP Billiton and a deal with a Chinese state-owned enterprise to build an iron ore mine near Cape Preston in the Pilbara,” he said. “The port at Cape Preston is currently operating and has had more than $4 billion spent on it.”
Mr Heugh said PNPL offered Central Petroleum financial muscle and protection from opportunistic take over predators and day traders.
“A keystone stake by PNPL could do a lot to stabilise the share register and attract more institutional long term investors, which is what the company needs badly if it is going to forge ahead with renewed growth,” he said.
Mr Palmer said PNPL was committed to the development and growth of Central Petroleum.
“We are interested in all of the resources that may be available as the platform for major development and infrastructure projects and believe that the stewardship the proposed new board will enable rapid commercialisation,” he said.
“PNPL will be available as required by the new board while Central’s established team of staff and consultants will continue to operate the oil, gas, condensate and helium resources.
“Under the proposal outlined by PNPL, farm-outs will be formulated from a position of strength with initial value adding being provided by PNPL. This will avoid the common problem of multi-nationals rapidly outspending and diluting Central in any future farm-out deals. There are no plans to relocate Central’s offices and staff, who are already well established in Perth and Alice Springs.”
ENDS
Further information:
Andrew Crook
Mb: 0419 788 431
CTP Price at posting:
42.5¢ Sentiment: Hold Disclosure: Held
(20min delay)