Joint receivers and Managers of Southern Pacific Petroleum Group David Winterbottom and Angus Blackwood of Ernst & Young informed the market of the decision following the sale of the SPP Group to Queensland Energy Resources Ltd (QER) on 13 February.

In a joint communiqué to shareholders of both SPP and CPM, Messrs Blackwood and Winterbottom said, "[We] accepted the offer from QER as it was the highest and best offer received for the business and assets of the SPP Group after a marketing campaign managed by Lazard & Co involving approaches to over 100 potential interested parties."

"[However], based on present forecasts, the proceeds from the sale will not be sufficient to repay the debt of the secured creditor in full. Accordingly, it is forecast that there will be no surplus from the receivership of SPP or CPM for distribution to creditors or shareholders of those companies," added Blackwood and Winterbottom.

Following the SPP sale, the only remaining assets left of both SPP and CPM are their respective 25% share in the Rundle Oil Shale JV.