Central Petroleum refers to its announcements regarding the Peak Helium farmout transaction, including the initial announcement dated 9 February 2022.
Central confirms that completion of the farmout agreement occurred on 31 March 2023.
Central has also been notified that completion has occurred under Peak Helium’s farmout agreement with Santos.
Following completion of the farmout agreements the resultant post-farmout interests by Central’s subsidiaries in the tenements will be as follows:
Under the farmout, Central will be free carried (i.e. funded) by Peak Helium for two new sub-salt exploration wells (capped at $20 million gross cost per well), one at Jacko Bore (Mt Kitty) (EP 125) and the other at the nearby Mahler prospect (EP 82).
Central CEO and MD, Leon Devaney, said 'completing this farmout provides our shareholders with further confidence on a potentially company-changing 3-well sub-salt exploration program. Now that completion has happened, we will work with Santos as JV Operator to progress the program and are targeting the commencement of drilling toward the end of this year or early 2024.'
Mr. Devaney added, 'based on our understanding of the recently announced Federal Government’s Safeguard Mechanism, we believe our sub-salt prospects remain well positioned for commercial development given previous discoveries in these Amadeus Basin permits have shown a very low CO2 content of <1%. We can now look forward with confidence to testing the enormous sub-salt potential for helium, hydrogen and hydrocarbons through multiple wells within the Amadeus Basin.'
Source: Central Petroleum
