The ASX-listed junior wants to map the Zevon sub-salt lead which lies ibn the north-western section of the Amadeus Basin between the Mereenie oil and gas field and the Surprise oil field.

The 2D seismic project will look to define and highlight the area as prospective for gas, helium and native ‘gold' hydrogen.

Central has previously said it expects the Zevon target to hold multi-trillion-cubic-feet of resources.

Zevon covers a massive 1664 square kilometres, broken down into two areas. Zevon West spreads across 582sq.km. Zevon East is approximately 180sq.km.

Two year's ago, Central said it was looking to test the structure in early 2023. A well was to be drilled to 2000 metres.

However, the company's initial EP for seismic acquisition was knocked back because it did not contain enough information.

Central suggests helium and hydrogen are most likely present in the Basement and Heavitree closures and high concentrations had previously been measured at wells Magee and Mt Kitty / Jacko Bore.

Santos drilled Mt Kitty / Jacko Bore in 2014, finding some hydrogen traces but not enough to be commercial.

Central loses dance partner in nearby permits

The company said a week ago its farm-out agreement with Peak Helium had fallen over some 16 months after the two parties first inked the deal.

In February 2022, Central agreed to farmout three exploration permits to Peak in exchange for a free carry on exploration work.

Under the terms, Peak took a 31% interest in EP82, a 10% in EP112, and a 6% interest in EP125. Santos is the operator of the permits and Central was left with a 29% stake in EP82, 35% in EP112, and 24% in EP125.

These permits are all near the Zevon permit EP115.

At the time, Central CEO and managing director Leon Devaney described the farmout as a "great catalyst" for the venture.

Last week, Central told shareholders Peak had failed to pay over $3 million in carrying costs.

The company said it had formed the view that Peak may not be able to fund its obligations under the farmin arrangements and that the future of a planned three well program was now "at risk."

A well was planned for EP82, EP112 and EP125, targeting subs-salt prospects with hydrogen and helium potential. The targets were called Mahler, Dukas, and Jacko Bore, respectively.

"Notwithstanding the extraordinary cost increases visible across the sector, Central has worked hard to preserve capital to fund its 35% share of any joint venture approved Dukas well," Devaney said.

"We will look at options for recovery of the monies owed and will work with Santos as operator regarding the future of the planned sub-salt exploration program, whilst protecting Central's legal rights."

Central has approached Peak and its financiers to restructure the joint venture.

Source: Energy News Bulletin