Central Petroleum has reached an agreement with Power and Water Corp for the early sale of gas under a gas sale and purchase agreement.
The new arrangement will allow the company to begin selling approximately 2TJ/day of gas from its Palm Valley Gas Field in advance of the commencement of the Dingo Gas field.
The company said the sale of early gas from Palm Valley will be incremental to the current gas production already occurring from Palm Valley under a sale agreement with Santos.
Richard Cottee, managing director, said: “With 88% of our acreage being gas prone, the early gas sale 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.”
For more oil and gas news click here.
Recommended for you
