Central Petroleum shareholders are considering a proposal by
Macquarie Bank for a buy-out valued at $86 million for the on-shore gas company.
The deal would unlock massive conventional gas reserves in Central Australia,
generating immense royalties.
Shareholders have until June to make their
decision.
The three key fields are Ooraminna, Palm Valley Deep and
Dukas. Central Petroleum has a 30% stake in Dukas, which is said to be a
multi-trillion cubic feet gas field. The deal now subject to shareholder
approval includes a contingent value right for some 600 billion cubic feet of
gas.
Macquarie is a major player in the US gas futures market,
and already owns a 50% stake in the Mereenie Basin, which is operated by
Central Petroleum.
In recent months the market has not favoured oil and gas
investments because of a drop in oil and gas prices. But prices are rising.
Prepared by Bob Woodward & Associates: offering business
consultancy, accounting, payroll administration and ancillary services in
Darwin, the capital of Australia’s Northern Territory.
