Dingo Gas Project Update - Early Gas Sales
Brisbane, Feb 9, 2015 AEST (ABN Newswire) - Central Petroleum Limited (
ASX:CTP) (CPTLF:OTCMKTS) today announced agreement with Power and Water Corp (PWC) for the early sale of gas under a Gas Sale and Purchase Agreement executed in September 2012. Under the new arrangement, Central will immediately begin selling approximately 2TJ/day of gas from its Palm Valley Gas Field in advance of the commencement of the Dingo Gas Field which remains on schedule and under budget, with completion to be in Q2 this year.
The sale of early gas from Palm Valley will be incremental to the current gas production already occurring from Palm Valley under a Gas Sale Agreement with Santos, and provides an acceleration of gas sales revenue with only a small incremental operating cost.
The Dingo Gas Field and Pipeline Project remains on time and under budget with commissioning expected to occur in Q2 of this year. By completing the Project under budget, Central will construct the Project below the Macquarie Debt Facility limit of $50 million announced in February last year.
"With 88% of our acreage being gas prone, the early gas sales to Power and Water Corp is another step in establishing Central as a gas supplier to the domestic gas markets. The Company advanced its transition from explorer to domestic gas producer and supplier in the 1st quarter of last year with the acquisition of the Dingo & Palm Valley assets. The supply agreement supports our Gas Acceleration Program and the North East Gas Interconnect (NEGI). This means that Central's revenues are overwhelmingly based on fixed domestic gas prices with CPI-escalation which, notwithstanding the fall in oil prices, continues to remain robust", said Richard Cottee, Managing Director.
About Central Petroleum Limited
Central Petroleum Limited (
ASX:CTP) is an established ASX-listed Australian oil and gas producer (ASX:CTP) with exploration and appraisal permits in the Northern Territory (NT). Central has grown to become the largest onshore gas operator in the NT, supplying residential and industrial customers in the NT and wider Australian east coast market.
Central is seeking to become a major domestic energy supplier, in addition to helium and naturally occurring hydrogen, with exploration, appraisal and development plans across 169,112 km2 of tenements the NT, including some of Australia's largest known onshore conventional gas prospects in the Amadeus Basin.
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