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Central Petroleum And Total Announce Strategic
Alliance For Exploration In Southern Georgina Basin
Central Petroleum has announced a
multistage farm-out agreement with
French energy company Total for the
exploration of approximately 6 MM acres in
the southern Georgina Basin.
The 6 November agreement covers four highly
prospective areas in the vicinity of recent
discoveries in the southern Georgina Basin in
central Australia, in EP(A)132 in the Northern
Territory and ATP(A)909, ATP(A)911 and
ATP(A)912 in Queensland.
The exploration will start with an investment
by the JV of US$60 MM for stage one, and, at
Total’s election, US$130 MM for stages two
and three. Should Total continue and fulfil its
funding obligations for stages two and three,
Total will earn in increments to a total of 68%
in the permits.
Total is required to fund 80% of exploration
and appraisal costs over four years to which
Total has committed the first US$48 MM of
expenditure for stage one after which Central
will fund the next US$12 MM.
Central will operate the farm-out areas for the
first four years and after completion of stage 3
Total will assume operator-ship for 90% of the
area. Central will retain operatorship of the
upstream activities on the remaining 10% of
the area.
Central, CEO Richard Cottee has attracted
significant investment into the company’s
tenements and said that with this
agreement Central could achieve long term
objectives he had outlined to the market
and the access to the capital required for
success.
“Central Petroleum retains 100% interest
in and 100% access to the cash flow from
its Surprise discovery. This also gives the
company the necessary time to build the
human resources and expertise to develop its
capacity as an operator.
“The company’s focus is clearly on the
exploration and development of our assets
in the Amadeus and Southern Georgina
Basins.
“Central is locating its head office to
Brisbane from where it is better placed
to concentrate on the development of its
operator-ship of the southern Georgina
Basin holding. We expect that the ATPs will
be granted in the New Year allowing us
to have a planned build-up of resources”,
Cottee said.
In October, he announced that Santos would
fund exploration in the company’s 13 permit/
application areas in the Amadeus and Pedirka
basins in central Australia by spending an
initial $30 MM.
It will provide capital for a fully funded
exploration programme while enabling Central
to retain a significant interest in the southern
Georgina Basin.
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December 2012 / January 2013 | PESA News Resources | 29