Central Petroleum Limited
(ASX:CTP) and Adelaide based Santos Limited
(ASX:STO) have announced a joint venture agreement to further explore and develop several areas in the Amadeus and Pedirka Basins in Central Australia.
Under the terms of the farm-in agreement, Santos will spend up to $150 million in return for a 70 per cent stake in the area that has been assessed as having substantial potential for both conventional and unconventional oil and gas resources.
Central’s chief says the deal relieves it from substantial capital exploration spending, allowing shareholders to retain a significant share in any confirmed reserves.
Central Petroleum booked a net loss of $26.4 million in 2012 financial year.
