santos u win, page-46

From thewest.com.au, not sure if someone posted it yet.

"Central Petroleum ends months of speculation about the future of its extensive acreage in central Australia by this morning announcing a $150 million farm-in deal with Santos.

Under the terms of the deal, Santos will be able to earn a 70 per cent stake in Central Petroleum's acreage in the Amadeus and Pedirka basins.

The farm-in will take care of Central Petroleum's funding obligations and allow the cash-constrained junior to focus on the acreage surrounding its Surprise oil field, also in central Australia, where a second extended production test is under way.

Central Petroleum chief executive Richard Cottee, who took charge of the Perth company in June after a bruising boardroom battle between chairman Henry Askin and founding managing director John Heugh, said yesterday he was thrilled with the Santos farm-in.

"To do this in the first 100 days of my reign of terror is relatively pleasing and not only do we have a great partner but I can't wait to get on with working on the rest of our acreage," Mr Cottee said.

He added that a deal to find "a home" for Central Petroleum's coal-prospective tenements was progressing as part of his strategy to focus on becoming a pure-play oil and gas stock.

"That is where I see the company's future," Mr Cottee said.

"We will keep 80 per cent of our acreage in the cradle for future development and we have taken the economic noose from around our neck with this farm-in."

Central Petroleum shares, at 13.5¢, have been in a trading halt since Friday pending the farm-in news. This morning they shot up 18.5 per cent, 2.5 cents, to 16 cents. Santos was up 28 cents, or 2.5 per cent, at $11.56.

Mr Cottee would not discuss the details of the work program that Santos had signed up to other than its headline value of $150 million.
He said one of the attractions of his new farm-in partner was that Santos was already operating in the area, ensuring ready accessibility to drilling rigs for the Central Petroleum acreage."