Central Petroleum Ltd (ASX:CTP) has received a notice of initial substantial shareholder from Macquarie Group Ltd (ASX:MQG) who now holds 35.6 million shares for a 6.79% stake.
Of the stake, Macquarie holds 17.7 million, with the remainder as custodian.
Central recently undertook a $27.2 million fully underwritten equity raising, with the joint managers and underwriters being Macquarie and Morgans.
Central says no to fraccing
The new funds will be used for four horizontal wells with the objective of substantially increasing the company's gas reserves in time to have delivery coincide with the Northern Gas Pipeline becoming operational in the second half of calendar year 2018.
Central said that it has no intention of fraccing.
The drilling program will focus on targets where gas is already known to exist.