Central Petroleum announces successful conclusion of gas sale Expression of Interest

Central Petroleum Limited (ASX: $CTP) has successfully concluded its gas sale Expression of Interest process, securing new long-term gas sale agreements with the Northern Territory Government and Arafura for the supply of up to 40.5 PJ of gas. The agreements aim to provide revenue certainty, mitigate risk to gas pipeline closures, and underwrite investment in new production wells at Mereenie, demonstrating the company's commitment to generating higher cash flows and ensuring uninterrupted gas supply.

Executive Commentary on Gas Sale Agreements

Central's Managing Director and Chief Executive Officer, Leon Devaney, expressed excitement about the company's role in supplying Territory gas to Territorians through firm, long-term domestic gas supplies backed by proven reserves. He highlighted the successful de-risking of forward revenues and the locking in of gas prices, providing a clear incentive to accelerate further investment to increase gas production from the company's assets in the Amadeus Basin. Devaney emphasized that the agreements achieve key Strategic Review objectives, maximizing cash flow, underwriting new investments, supporting debt extension initiatives, and accelerating returns to shareholders.

Summary of Gas Sale Agreements and Outlook

Central Petroleum's successful conclusion of the gas sale Expression of Interest process has resulted in long-term gas sale agreements that provide revenue certainty and mitigate the risk of gas pipeline closures. The agreements also underwrite investment in new production wells at Mereenie and provide a clear market signal to support additional investment in field production increases. With existing firm volumes fully contracted through 2030, the company's successful EOI outcome achieves key Strategic Review objectives, maximizing cash flow, underwriting new investments, supporting debt extension initiatives, and accelerating returns to shareholders. The outlook for Central Petroleum appears positive as it continues to solidify its position as a major domestic energy supplier, backed by exploration, appraisal, and development plans across its extensive tenements in the Northern Territory.