Junior explorer Central Petroleum Ltd
(ASX:CTP) hopes to raise $22 million to fund its exploration of the Northern Territory’s Amadeus Basin.
The company is planning to raise the funds through a one-for-two rights issues priced at 7.5 cents.
This compares with its last traded price of 10.5 cents.
The extra cash will be used to fund phase two of its exploration program in the Amadeus Basin, where it has almost 250,000sq km of acreage in which to drill. The company has also begun scanning and digitalising vintage seismic data covering large areas in the Basin.
Managing Director John Heugh says the additional seismic control is expected to contribute significantly to the exploration effort.
The Amadeus Basin region was explored in the 1960s by the likes of Total, Santos and Beach Petroleum, but was considered uneconomic.
Central Petroleum reported a loss of $12.77 million for the 2009 financial year.
