The four areas covering a total of about six million acres are EP(A)132 in the Northern Territory and ATP(A)909, ATP(A)911 and ATP(A)912 in Queensland, Australia.
Under the terms of the agreement, the two companies will collectively invest $60m for the exploration of the first stage and at Total’s election will devote $130m for the exploration of the second and third stages.
For the first stage, Total will invest $48m to cover the exploration and appraisal costs during the first four years and Central Petroleum will provide with the remaining $12m.
Total, if continues with its investment plans in the second and third stage, as per the agreement, will gain 68% interest in the permits.
Central Petroleum chairman Henry Askin said, "This agreement pursues a course that gives priority to the exploration of our extensive acreage by providing for an accelerated exploration program which would not have been otherwise possible."
Central Petroleum CEO Richard Cottee said, "It provides capital for a fully funded exploration programme while also retaining significant interest in the nearly 6 million acres we hold in the Southern Georgina Basin."
For the first four years of the exploration program Central Petroleum will be the operator of the permits, thereafter Total will assume the operatorship for 90% of the acreage and the remaining 10% will be operated by Central.
