Australian independent Central Petroleum will sell its 50pc interest in the Range gas project within Queensland's Surat Basin to fellow Australian independent Senex Energy's wholly-owned subsidiary for A$12.5mn ($8.1mn).
The transaction is not subject to any conditions precedent and completion is expected by the end of November, Central said on 13 November. Exiting the Range project, a 50-50 joint venture with Australian fertiliser and explosives group Incitec Pivot, is consistent with the firm's strategic review and frees up significant capital to pursue other strategic options. Any gas production from Range is reserved for domestic use.
Central had planned to produce gas from Range by 2022, but put the project on hold in 2020 because of low oil prices and uncertainty in the global energy market.
Pre-final investment decision activity was then restarted in 2021 via a three-well appraisal project.
The coal-bed methane project nearby the Wallumbilla gas hub consists of an estimated 270PJ (7.21bn m³) of 2C contingent gas resources.
Senex, developer of the proposed A$1bn Atlas project in the Surat basin, has signed conditional gas sales agreements of more than 150PJ.
The company was acquired by Australian energy firm Hancock and South Korean steel producer Posco in April last year, with plans to triple Senex's gas production.
Posco is seeking to export up to 400,000 t/yr of this increased gas output to South Korea post-2025.
