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Central completes strategic review

Central's review completion has confirmed the value in the company’s producing assets and exploration acreage. Image: Wasan/stock.adobe.com

The review completion has confirmed the value in Central Petroleum’s producing assets and exploration acreage.

“We have concluded the Strategic Review which has confirmed the value in our producing assets and exploration acreage,” Central Petroleum chair Mick McCormack said.

“We are particularly pleased about the success of the range sale which will strengthen our balance sheet.”

He said that having completed the strategic review, Central would now focus on cost and production efficiency from its producing assets, together with advancing discussions with interested parties to develop its exploration acreage on a promoted basis.

“On behalf of the board, I would like to thank our shareholders for their patience as we conducted the strategic review as it has taken considerably longer than anticipated,” McCormack said.

Highlights coming out of the strategic review included the successful sale of the company’s interest in the range project for $12.5 million, with the proceeds being used to reduce net debt and strengthen the balance sheet.

Highlights also included an interest from parties wanting to participate in the exploration and appraisal of Central’s sub-salt acreage.

The termination of farm-out arrangements with Peak Helium has increased this interest. Central will continue to pursue discussions with these interested parties.

The review also resulted in the confirmation that the company’s producing assets are performing well and are of interest to the market.

They continue to benefit from a strong gas price environment, which the company sees as continuing over the medium term.

Lastly, a highlight of the review for the company was receiving a number of expressions of interest to purchase operating assets.

The board however, considered none were sufficiently attractive to warrant putting a transaction proposal to shareholders for approval.

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