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.