Central announces $1.3m loss ahead of drilling start

South Perth-based petroleum exploration company Central Petroleum Ltd has announced a net loss of $1.3 million, from last year's loss of $1.5 million.

The company, which raised $10 million through its IPO and subscriptions, is yet to commence drilling, but stated in an announcement to shareholders that it had made substantial progress towards the commencement of field operations.

It aimed to commence drilling at its Blamore prospect in 2007, after establishing an appropriate all weather access route to the site.

During the year, the Company issued a prospectus and a supplementary prospectus and consequently raised $10,621,400. Seed capital subscriptions and the exercise of options to subscribe for ordinary shares raised a further $229,300.

In February, the Company purchased Frontier Oil & Gas Pty Ltd and Ordiv Petroleum Pty Ltd for a consideration of 23.5 million shares plus 8 million options exercisable at 20c and a cash payment of $400,000.

It also purchased Helium Australia Pty Ltd for 17.5 million shares plus 8.75 million options, exercisable at 20 cents per share.

In the Amadeus Basin, acquisition contracts have been awarded for new seismic surveys over the prime prospects of Johnson/Gypsum, Ooraminna, Waterhouse and Mt. Kitty with the objective of maturing these to drillable status.

The company is also actively pursuing and developing farm-out possibilities to enable and maintain a sustainable broadly based exploration programme, and is in discussion with several major oil companies who are reviewing data under confidentiality agreements.