Due to no cash payments being received by Central Petroleum (ASX: CTP) from Trident Energy, in accordance with the joint venture agreement, Central has terminated the Trident farm-out agreement.
The agreement was with a wholly owned Central subsidiary, Frontier Oil & Gas, which was to sole risk the drilling works of the Johnstone West 1 well within EP 115.
Initially Trident had until 6 December 2010 to make the JV payments, with a short extension granted to 20 December 2010, but no payments have been received by Central.
As a result, the Trident Farm-out Agreement has been terminated and Trident has withdrawn from EP 115, and is required to return all of its participating interest to Frontier.