This is the second in a series of planned farm-outs, following a deal signed with He Nuclear in January.

The latest agreement would see Central grant Petroleum Exploration Australia (PXA) a 20% working interest in each permit spanning 235,000 square kilometres in the Amadeus, Pedirka, Lander and Georgina basins.

In return, PXA would pay 40% of pre-drilling seismic and three wells in each permit area.

Once the paperwork is complete, Central says it aims to start drilling in the third quarter on the Blamore, Ooraminna and Mt Kitty prospects as well as pre-drilling seismic for other prospects.

In addition to funding, PXA wants to help bring new technologies into play, according to chairman Barry Dawes.

“There is no substitute for the primary basics of good geology and geophysics in the search for hydrocarbons,” he said.

“But new technology such as the airborne gas analysis technique utilised by Red Sky and recent developments in the analysis of micromagnetic signatures in moving fluids in petroleum reservoirs may be a very valuable adjunct in this enormous exploration effort and could aid in prioritising prospects and leads as drilling targets.”

Dawes said he also wanted to use his Chinese connections to help with the supply of equipment, hardware and personnel, subject to operator approval.

“Drilling rigs and seismic crew are in very short supply in Australia today and this situation is probably going to get worse,” he said.

The initial three-well program is targeting P10 recoverable resources of up to 100 million barrels of oil, 2.4 trillion cubic feet of gas and 105 billion cubic feet of helium.

Drilling would be accompanied by a 1000km 2D seismic program over the Magee, Guinevere, Vivienne, Johnstone, Surprise, Gypsum and Stuart prospects as well as EP 112 and 118 in additional regional and lead studies.

Depending on results, drilling could occur on the Guinevere, Avalon, Johnstone, Magee and maybe some additional prospects during 2008.