Central Petroleum, Total May Begin Shale Exploration by April

Central Petroleum, which inked a deal with Total to explore for shale gas in central Australia, expects exploration to begin by April.

“This area is considered to be highly prospective,” Richard Cottee, chief executive officer of Perth-based Central Petroleum, told Bloomberg in an interview.

The exploration will start with an investment of $60 million for stage one. Total will have the option to hike the investment to $130 million for stages two and three. Should Total continue and fulfil its funding obligations for stages 2 and 3 Total will earn in increments to a total of 68 percent in the permits.

Central Petroleum doesn’t have a need for further funding after the Total agreement and another exploration partnership with Adelaide-based Santos Ltd. announced last month, Bloomberg added.

“The balance sheet is properly underwritten, and we don’t need to go to the market,” Cottee said.