Palm Valley JV strikes long-term gas supply deal with NT Government

Central Petroleum and its Palm Valley associated task (JV) partners Cue Energy Resources and Echelon Resources person signed a binding multi-year state income statement (GSA) with the Northern Territory (NT) Government successful Australia.

The declaration is acceptable to proviso up to 21 petajoules (PJ) of state from the onshore Palm Valley state tract successful the NT's Amadeus Basin.

The woody covers deliveries from the 2nd fractional of 2026 (H2 2026) done to the extremity of 2034. It carries a fixed marketplace price, user terms scale escalation and take-or-pay terms.

Central Petroleum is the relation of the Palm Valley JV with a 50% stake, portion Echelon Resources holds 35% and Cue Energy Resources the remaining 15%.

The partners person made a last concern determination to drill 2 caller wells astatine the state field.

Drilling is scheduled to commencement successful mid-2026, with accumulation ramping up gradually during the aboriginal months of that year.

Civil works are chiefly complete, agelong pb items person been ordered, regulatory approvals are successful spot oregon progressing, and the Ensign 974 drilling rig has been contracted.

Central Petroleum expects its drilling and completion outgo stock to beryllium astir A$26m ($18.3m), which includes an allowance for imaginable diesel terms increases.

The 2 caller wells are expected to initially summation Central Petroleum’s state accumulation capableness by astir 40% if targeted accumulation rates are achieved. The planned wells volition people the aforesaid geological enactment arsenic the PV-12 well, which was drilled successful 2022.

Once operational, these wells are expected to assistance reconstruct the Palm Valley accumulation facility’s capableness to 15 terajoules (TJ) per day.

Gas produced successful Palm Valley is brought astatine debased unit from the wells via flow-lines to a accumulation facility, wherever it is compressed and dehydrated. From there, it enters transmission pipelines bound for customers successful the NT and connected the eastbound coast.

The statement replaces the arrangements outlined successful a antecedently announced missive of intent with the Power and Water Corporation. That missive besides included state from the Mereenie Gas Field, which the existent statement does not cover.

Central Petroleum volition marketplace Mereenie state to different buyers looking for semipermanent supply.

Central Petroleum CEO and managing manager Leon Devaney said: “It has taken clip to get the settings right, but we present person a important GSA for the Palm Valley JV. Importantly, it underwrites an concern successful 2 Palm Valley appraisal wells connected an accelerated basis.

“The caller wells volition replicate the extended lateral designs that were palmy successful the past Palm Valley drilling programme.