Central Petroleum has entered into a farmout agreement with Peak Helium for various interests within the southern Amadeus Basin. 

Under the farmout, Peak will fund Central to drill two new sub-salt exploration wells: one at Mt Kitty and the other at either Magee or the nearby Mahler prospect. 

Combined with the planned Dukas exploration well, a total of three sub-alt exploration wells will now be prioritised for drilling in the Amadeus Basin. 

Central chief executive and managing director Leon Devaney said that the agreement for Peak was a “great catalyst” for a major near-term exploration drilling campaign. 

“We have clear joint venture alignment and full funding for the Mt Kitty and Magee/Mahler sub-salt exploration wells based n current drilling cost estimates,” said Devaney.

“We welcome Peak as a new joint venture partner, with this transaction marking a major step forward for further exploration in the southern Amadeus Basin.” 

Devaney added that the investment by Peak sets a benchmark for the value of the acreage, demonstrating the potential sub-salt prospects for natural gas, helium and hydrogen. 

Previous drilling in all three prospects has confirmed the presence of helium, hydrogen, and gaseous hydrocarbons.

Peak will earn a partial transfer of Central’s interests in the three permits. As such, the company will acquire 31 per cent in EP82, 10 per cent in EP112, and 6 per cent in EP125. 

Santos, operator of the three permits, has also entered farmout agreements with Peak, whereby the latter will acquire 20 per cent of Santos’ interests in EP82, 25 per cent in EP112, and 50 per cent in EP125. 

Santos will continue as operator in all three permits, and drilling is scheduled to commence in 2023.

Source: Oil & Gas Today