Oz Central Appoints Advisor for Farm-Out

Australian explorer Central Petroleum has appointed Flagstaff Partners as its advisor for the farm-out of its 2020 exploration programme exploration targets and associated operating assets, it said January 8.

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 company said that the farm-out process was already underway with critical path items for the 2020 exploration programme (well design, procurement of long lead items, etc.) being progressed throughout to maintain drilling targets. The farm-out process is targeting completion by mid-2020, Central said.

“We have great operating assets in the Northern Territory which are now delivering gas to an east coast gas market that is critically short of term-gas supply. Our CY2020 exploration programme is targeting a significant increase in gas reserves to leverage existing production facilities and to provide high marginal value. This provides us with an opportunity to capitalise on an attractive farm-out package that creates near-term value,” Central CEO Leon Devaney said.