Central Moves Ahead With Oz Farm Out Plan

Sydney-listed Central Petroleum on November 9 said that the farmout process to fund its Amadeus basin exploration programme in Northern Territory had reached a final due diligence phase with a preferred bidder under a limited period exclusivity arrangement.

“The farmout process, initiated in January, has attracted sustained interest from local and international industry participants, notwithstanding the impacts of intervening Covid-19 restrictions and oil and gas market volatility,” the company said. Central is seeking a farm-in partner to take a minority stake in the exploration targets to help with funding its campaign. It may also farm out some of its other assets, including Mereenie, Palm Valley, Dingo and Surprise, to raise capital.

The due diligence phase is scheduled to continue over the coming months, with the aim of completing a farm-out deal in the first quarter of 2021, Central said.

“The farmout process remains non-binding at this stage and therefore subject to significant transaction risk, including further due diligence and finalising current non-binding indicative commercial terms and documentation,” it added.

The company stated that a new gas sales agreement and finance facility extension, Mereenie field development activity and Range gas project restart activities are not dependent on the completion or timeframe of the farmout process.