Central Petroleum Limited (Central) (ASX: CTP) announces that joint venture approvals have been provided for Santos as operator to carry out certain key activities, such as rig contracting, ordering long lead items and environmental and land access approvals, related to the planned drilling of three sub-salt exploration wells in 2023.
These wells are targeting hydrocarbons, helium and naturally-occurring hydrogen at the Mahler prospect (EP82, having now been formally chosen by the joint venture over the Magee prospect), the Dukas prospect (EP112) and the Mt Kitty prospect (EP125).
These wells have been programmed to be drilled under the Peak Helium farmout transaction announced on 9 February 2022, where Central will be free carried (i.e. funded) effective 1 October 2021 by Peak Helium for the Mahler and Mt Kitty wells (capped at $20 million gross cost per well).
Satisfaction of conditions precedent for the Peak Helium farmout agreement are progressing towards completion. Upon completion, Peak Helium will reimburse Central for joint venture costs incurred by Central from 1 October 2021 for the free carried portion of the wells and Peak Helium’s participating interest share of well costs.
For full ASX Announcement, click here.