High Peak Royalties to outline potential for higher oil & gas income at Proactive CEO Sessions

  • Feb 26, 2019
  • Proactive Investors

High Peak Royalties Ltd (ASX:HPR) is expecting a rise in royalty income from exploration and producing properties in the Australian and US oil & gas sector and will outline its progress during next month’s Proactive CEO Sessions.

Chairman Andy Carroll will present to investors at the Sydney CEO Session on Monday, March 11 and at the Melbourne session on Tuesday, March 12.

High Peak’s major achievements in 2018 centred around newly-acquired Planet Gas USA, which is already contributing with cash receipts from royalties of $137,782 for the December 2018 quarter.

The company is also progressing opportunities arising from Australian assets that are under development in Queensland and the Northern Territory.

In Queensland, High Peak holds a 2.25% royal over the Peat Gas Field production licence 101 area where Origin Energy Ltd (ASX:ORG) drilled the South Burunga-2 deep gas well in April 2018.

Origin recently reported a significant increase in gas prices (both LNG and domestic gas) compared to the same period last year.

This will be reflected in High Peak’s future royalty revenues receipts due to the time lag between production and receipt of royalties.

Gas is now flowing from the Northern Territory to the Eastern States gas market, where prices are at record high levels, through the recently completed NGP pipeline.

Santos (ASX:STO) continues to prepare to drill the Dukas well, which is scheduled to start drilling in the next few months.

This well will test the very large hydrocarbon and hydrogen resource potential of the sub-salt zones. High Peak has a 1% royalty on this permit and several adjacent permits.

Register for the CEO Sessions today to find out more.

Also featuring at both sessions will be Carnarvon Petroleum Ltd (ASX:CVN) and Bass Oil Ltd (ASX:BAS).