Central Petroleum, Santos Form JV

Central Petroleum has secured Santos as a joint venture partner in a deal which could see up to A$150 million in exploration spending on 13 permits and application areas in the Amadeus and Pedirka basins, Proactive Investor reported.

Under the agreement, which provides a clear and funded pathway for the exploration and exploitation of the permits, Santos will spend an initial A$30 million in the first stage followed by A$60 million in the second and a further A$60 million in the third stage to earn up to 70% in the areas, which cover nearly 80,000 square kilometres.

Santos will assume operatorship of the fields during exploration and in the event that they are developed.
    
The Company also has exploration rights over its remaining holding of 38 million acres (153,780 square kilometres) in the Amadeus, Southern Georgina, Wiso and Pedirka basins.

The Amadeus Basin is the most mature and proven of Central’s assets as confirmed by the recent Surprise oil discovery and current production while the Pedirka contains extensive organic rich shale.