Central Petroleum chooses Canaccord and Cormark Securities for Toronto listing

Central Petroleum (ASX: CTP) has appointed Canaccord Genuity Corp. and Cormark Securities Inc. to act as financial advisors for the company's proposed listing on the TSX Venture Exchange (TSXV) between the fourth quarter 2011 and first quarter 2012.

The company has also has updated progress on plans to re-enter the Surprise-1 well in the Amadeus Basin in central Australia.

Central believes it is considerably undervalued in the central Australian context and it is looking to tap North American investors with the TSX listing.

The company said there is a considerable share price disparity between Central’s stock, relative to other TSXV listed companies with a central Australian focus but with much smaller prospective acreage packages.

The Toronto Stock Exchange (TSX) is the largest market in the world for mining and resource stocks in terms of dollars invested and number of companies.

John Heugh, Central’s managing director, said “these two groups are among the most experienced and successful investment banks dealing in the energy sector in the Canadian market.”

Central Petroleum has generated considerable interest from North American investors via a series of presentations to investment banks and funds and aims to follow through on this interest to access a the large energy market sector there, in addition to the ASX.

There has been growing interest in unconventional exploration and development globally in recent years and much of that interest is coming from North America generally and the TSX market in particular.

Exploration and farmin plans announced by Rodinia Oil, Hess Exploration, PetroFrontier, TME Resources, Mitsubishi and ConocoPhillips have excited interest in very large regional frontier basin areas in Australia.

The recently published booking by Beach Petroleum of 2 TCFG in contingent unconventional reserves in the Cooper Basin has given further impetus to an already buoyant unconventional sector in Australia.

Central aims to selectively and progressively farmout portions of its vast acreage by capitalising on a perceived trend for farmout deals to become progressively richer as exploration success boosts the value of unconventional acreage in central Australian basins.

Surprise-1 Well Update

The company is planning to re-enter Surprise-ST1 mid to late September 2011 to accelerate a program over the next 12-18 months focussed on re-entry and testing of Surprise-ST1 (10 MMbbls UOIIP-P50) for oil potential in both conventional and unconventional horizons.

Central is also looking to drill Mt Kitty-1, a large condensate/helium/gas prospect (UGIIP 2 TCFG, 100 BCF helium-P50) and Madigan-1, the first well on a giant structure in the Pedirka Basin thought to have UOIIP potential of over 4 billion barrels (P50) based on preliminary mapping of new seismic acquired in 2010.

Seismic acquisition plans over a number of play types are also being evaluated. These include the Surprise-Johnstone area for conventional and unconventional oil exploration, the Madigan and Pellinor Devonian reefal plays in the Pedirka and, subject to grant, unconventional and conventional oil and gas potential within the company’s Southern Georgina Basin Arthur Creek Shale plays.

The company plans follow-up drilling and seismic to include some 6-8 unconventionally completed wells and several conventional wells in 2012.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/18832/central-petroleum-chooses-canaccord-and-cormark-securities-for-toronto-listing-18832.html