Central Petroleum has taken a key step towards securing partners for its 2020 exploration program at a range of Northern Territory oil and gas projects.
The company has appointed Flagstaff Partners as an advisor for the farm-out of its exploration targets and associated operating assets, including the Mereenie oil and gas field, Palm Valley gas field, Dingo gas field and Surprise oil field.
Central has already started the farm-out process, with critical items for its 2020 exploration program, such as well design and procurement of long lead items, being progressed to maintain drilling targets.
The farm-out is targeted for completion by mid-2020, according to the Brisbane-based company.
Central managing director and chief executive Leon Devaney said the company’s operating assets in the Northern Territory were now delivering gas to an east coast gas market critically short of term gas supply.
“Our CY2020 exploration program is targeting a significant increase in gas reserves to leverage existing production facilities and to provide high marginal value,” Devaney said.
“This provides us with an opportunities to capitalise on an attractive farm-out package that creates near-term value.”
Flagstaff, a Melbourne-based corporate advisory firm, was selected by Central following a competitive process as the party best placed to deliver a farm-out that achieves a value maximising and efficient outcome.