west australian

Cottee sees big opportunities at Central

Richard Cottee, who turned Queensland Gas Company into a $5.7 billion takeover target, has spoken of a dream to turn his next challenge, the embattled Central Petroleum, into an Australian household name alongside Santos, Origin Energy and Woodside Petroleum.

"My mission in life has been to make my shareholders obscenely rich," Mr Cottee said yesterday.

"Within five years I would see that we'll be in a substantially strong position, with substantial production and still a hell of a lot of exploration to go ahead.

"Still beating in my breast is the chance to be able to create another one of those household names. The base is there at Central Petroleum."

Addressing shareholders for the first time since taking on the chief executive's reins at Central Petroleum amid a shareholder brawl, Mr Cottee described the Perth company's assets in central Australia as "the pre-eminent assets of any oil and gas play" in the country.

He said the assets were capital-starved and that Central Petroleum needed to "get rid of the dysfunctionality" surrounding the company if it was to have a chance of securing a valuable farm-in partner.

"Clearly with that size of acreage it was always beyond the wit of a single company to raise it (the required capital) from the stock market and I think if there is any criticisms of where we have been in the past was the idea that having 100 per cent of the asset was the way to commercialisation," he said.

"No one knows what the company is. Is it a helium play, a coal play, an oil and gas play? People will not be able to back (the company) because focus and determination are the only things that bring home the bacon. The previous leadership has not shown to anyone precisely what it is trying to do, other than accumulate acreage, you have had no significant farm-outs and few institutional investors.

"They are clearly good assets because . . . one of the wealthiest people in Australia wants to get control of the candy bar. You don't do that because you think it's not worth anything."

Mr Cottee's reference to Clive Palmer, the fellow Queenslander, comes amid a bruising battle among Central Petroleum shareholders about the company's future direction and leadership.

Mr Palmer, a 4.8 per cent shareholder, has teamed with Central Petroleum founder and sacked chief executive John Heugh to try to roll the board. They also oppose Mr Cottee's appointment to the helm of the company, which needs to be ratified at one of two share-holder meetings on June 22.

The brawl has prompted Mr Cottee and chairman Henry Askin to embark on a national investor roadshow, which began yesterday in the boardroom of company adviser Patersons Securities. About half of $120 million Central Petroleum's shareholders are based in WA.


Interesting that 50% of the shareholders are based in WA. I wonder whether there is an east/west split regards Heughs/Cottee ?

I'm from the West & infavour of Cottee