Central sells Range gas project stake to Senex for A$12.5mn
ASX-listed Central Petroleum on November 13 announced the sale of its 50% interest in the Range gas project (ATP 2031) in Queensland's Surat basin to Senex Energy for A$12.5mn ($8mn).
Central Petroleum Eastern, a unit of Central, was awarded the ATP 2031 exploration tenement in August 2018, securing a term of 12 years. Incitec Pivot Queensland Gas, a wholly owned subsidiary of Incitec Pivot, subsequently acquired a 50% interest in the tenement by financing an exploration programme through 2019.
"Exiting the Range project aligns with our strategic review and generates significant capital," stated Leon Devaney, CEO of Central Petroleum. "This enhanced financial strength positions Central Petroleum well to pursue other strategic options available to the company."
The Range gas project encompasses an area of 77 km2 and holds an estimated 270 petajoules of 2C contingent gas resources. The project is situated amidst major coalbed methane developments and boasts established pipeline infrastructure, according to Central Petroleum's website.
The company recently announced a positive reserve adjustment for its proved and probable (2P) gas reserves, which have increased by 8% before production.