Central Petroleum and Total form strategic alliance for exploration in Southern Georgina basin
BRISBANE -- Central Petroleum has announced a multistage farmout agreement with Total for the exploration of approximately 6 million acres. The agreement covers four highly prospective areas in the vicinity of recent discoveries in the Southern Georgina Basin in central Australia, namely, EP A132 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 joint venture of $60 million for Stage 1, and, at Total’s election, $130 million for Stages 2 and 3. Should Total continue and fulfil its funding obligations for Stages 2 and 3 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 $48 million of expenditure for stage one after which Central will fund the next $12 million.
Central will operate the farmout areas for the first four years and after completion of Stage 3 Total will assume operatorship for 90% of the area. Central will retain operatorship of the upstream activities on the remaining 10% of the area.