Central Petroleum Completes Farm-Out With Total

Central Petroleum has completed the farm-out transaction with Total pertaining to the three Queensland permits covered by their farm-out agreement for the shale gas exploration of approx. 6 million acres in the Southern Georgina Basin.

The farm-out agreement announced in November last year comprises a three stage, four year exploration programme over four permits; ATP909, ATP911 and ATP912 in Queensland and EPA132 in the Northern Territory. Stage 1 of the exploration program over all these permits will cost $60 million, of which Total has agreed to fund the first $48 million of expenditure after which Central will fund the next $12 million.

The closure of those parts of the farm-out agreement related to EPA132 in the Northern Territory will occur upon the grant of the exploration permit.

'The completion of the farm-out is a major milestone for the Company and heralds the formal start of its operatorship in the promising Southern Georgina Basin. Stage 1 encompasses both seismic and drilling,' said Richard Cottee, Managing Director of Central.