Central Petroleum Ltd., Brisbane, farmed out part of its interests in three Amadeus basin permits in the Northern Territory to Peak Helium (Amadeus Basin) Pty Ltd., Singapore, in exchange for a free carry through the funding of two new sub-salt exploration wells in two of the permits.
Peak will earn 31% interest in permit EP82 (excluding the area immediately surrounding Dingo gas field), 10% of EP112, and 6% of EP125.
Peak will carry Central’s costs—up to $20 million (Aus.) gross cost/well—for one well in the EP125 Mt Kitty prospect and another on either Magee or Mahler prospects in EP82.
Previous drilling in all three prospects confirmed the presence of helium, hydrogen, and gaseous hydrocarbons.
Another exploration well in the forthcoming program is planned for the EP112 Dukas prospect where Central will pay its share of costs.
Operator of the three permits, Santos Ltd. also has entered farmout arrangements with Peak whereby Peak will take 20% of Santos’ interest in EP82, 25% of its interest in EP112, and 50% of its interest in EP125.
The new interests are: EP82 (Peak 51%, Central 29%, Santos 20%); EP112 (Peak 35%, Central 35%, Santos 30%); and EP125 (Peak 56%, Central 24%, Santos 20%).
Santos will continue as operator in all three permits. Drilling is scheduled to being in 2023.
The Magee-1 wildcat, drilled in EP82 in 1992, flowed natural gas with a 6.3% helium content from the Heavitree formation reservoir, Central said. The nearby undrilled Mahler prospect in the permit is potentially larger, but a decision on which prospect to drill has not been made.
In EP112, the Dukas-1 wildcat was suspended in 2019 after encountering hydrocarbon-bearing gas and 2% helium from an over-pressured zone prior to reaching the primary sub-salt target.
In EP125 it has yet to be decided whether to re-enter the existing Mt Kitty-1 well, drilled in 2014, or spud a new well at the location. The original Mt Kitty-1 flowed hydrocarbons, 9% helium, and 11.5% hydrogen from fractured igneous basement rock.
The agreement with Peak is a catalyst for a major near-term drilling campaign targeting sub-salt prospects in the southern part of the Amadeus basin, said Leon Devaney, Central’s chief executive officer. Privately held Peak holds 100% interest in Amadeus permit EP134 that adjoins all three of the farmout permits.
