Pedirka Basin coal assets sized-up for separate listing

JUNIOR explorer and producer Central Petroleum is investigating options to create a separate company to hold its coal assets, in a bid to maximise the shareholder value of its extensive early-stage coal discoveries in the Northern Territory.
The company stated that its coal discoveries in the Pedirka Basin had the potential to be highly valuable, despite the fact that the market currently assigned little value to them.
“There is a supportive market sector for investors of early stage coal exploration companies and given Central’s oil and gas focus, the company is of the view that its coal assets are not achieving market visibility or the specialist attention required to move
them towards potential commercialisation,” the company stated.
According to Central Petroleum, its coal assets required a dedicated focus. “The proposed separate listing of the coal assets would have its own board of directors, [an] experienced coal management team and funding capabilities, yet most importantly, still provide Central shareholders exposure to the coal assets though a retained equity interest,” the company stated. Central would provide further details of the coal restructure to the market in the near future.
The announcement of the separate listing of Central’s coal assets followed the release of a statement on April 18, written by the company’s chairman Dr Henry Askin, addressing “some shareholder concerns.” Mr Askin stated that the dismissal of
the company’s former managing director and co-founder John Heugh in March was a matter of regret to him and the other board members but that, in their view, there was no alternative action available.
“This was a significant step to take – the decision was not taken lightly by the board and only pursued after other options had been explored. The board intends to convene a general meeting to [also] remove Mr Heugh as a non-executive director of the company,” Mr Askin said.
According to reports, Mr Heugh tried to subvert a board decision giving control of the company’s deal making to its exploration manager, Trevor Shortt. Mr Askin said that Central would “vigorously” defend the legal proceedings issued by Mr Heugh in which he disputed the termination of his employment. According to Mr Askin, Central did not intend to appoint another managing director in the short term.
“We have sought out and appointed an active, highly capable and extremely well-qualified acting chief executive officer in Mr Dalton Hallgren, who we support completely to deliver the value creation which Central and its shareholders deserve.”

 

By Jaimee Conn

One Response to Pedirka Basin coal assets sized-up for separate listing

  1. Deborah

    July 30, 2012 at 10:37 pm

    have read all your articles and they are all great. congratulations for hard work on this website

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