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Central Petroleum Served With Draft Statement Of Claim From Petroleum Nominees

Central Petroleum (ASX: CTP) has been served with the application and draft statement of claim by Petroleum Nominees seeking to overturn the company's A$11 million placement.

Petroleum Nominees is seeking leave to pursue the claims on the company's behalf.

Should this be granted, it plans to name chairman Dr Henry Askin; non-executive directors Richard Faull and William Dunmore; former managing director John Heugh; and the various entities that were part of the placement announced on 4 April as defendants.

Under the draft statement of claim, Petroleum Nominees is calling for the company to buy back the shares issued under the placement at the price paid for them and for Central to consider any proposal from Petroleum Nominees for the issue of shares as well as any other proposal and to elect members of the board.

Should this not be possible, Petroleum Nominees is claiming damages for breach of directors duties together with interest and costs.

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