IPL Gas Sales Agreement and Queensland Acreage Farmin
Brisbane, June 25, 2018 AEST (ABN Newswire) - Central Petroleum Limited (
ASX:CTP) ("Company" or "Central") today has executed a Gas Sales Agreement ("GSA") with Incitec Pivot Limited ("IPL") whereby Central will deliver at least 20 TJ/d of gas to IPL on an ex-field basis from its Palm Valley and Mereenie fields. The gas will be delivered from the commencement of commercial operations on the Northern Gas Pipeline (currently anticipated to be December 2018) till 31 December 2019.
The Company is in discussions with APA Limited on upgrading the Mereenie to Amadeus Gas Pipeline lateral. Subject to reaching a commercial accommodation with APA, IPL has an option to further increase that volume.
Further to Central's announcement dated 1 March 2018 a 50:50 joint venture arrangement for ATP(A)2031 in Queensland (the "Qld Acreage") has also been agreed with IPL, allowing the fast tracking of the Qld Acreage. Under the joint venture arrangements, IPL will contribute up to $20 million for appraisal drilling costs during the initial exploration period.
"The sale of Northern Territory gas into the eastern seaboard to IPL demonstrates the importance of Northern Territory gas to the domestic market. It is particularly noteworthy that this gas is being used to keep open an existing fertiliser plant-an essential input in the production of food-and preserving the existing employment of many Australian workers. As a result of this GSA, Central will be reopening its 100% owned Palm Valley field, further employing both local Indigenous and non-Indigenous people. Our commitment to Indigenous employment has been successfully implemented and over 30% of our Northern Territory employees will continue to be Aboriginals," said Richard Cottee, Managing Director, Central Petroleum Limited.
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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