Santos (ASX:STO) is proceeding to Stage 3 of the Southern Amadeus Farmout in the Northern Territory with oil and gas explorer Central Petroleum (ASX:CTP).
Santos is drilling a well in EP112 to earn a 70 per cent participating interest in that permit. This comes after Central Petroleum (ASX:CTP) completed seismic works as part of the Stage 2 farmout.
It is expected that Santos will drill the Dukas Prospect in EP112 which will be a free carry for Central under the farmout.
Drilling on the Dukas Prospect is anticipated in the first quarter of 2019.
Shares in Santos (ASX:STO) are flat at $6.67