• Binding LOI with Northern Territory's Power and Water Corporation
• Four-well drilling program at Mereenie and Palm Valley
• Long-term gas supply agreements for up to 25.5 PJ (Central share)

Central Petroleum Limited (ASX: CTP) and its Mereenie and Palm Valley Joint Venture partners have entered into a binding Letter of Intent (LOI) with the Northern Territory's Power and Water Corporation (PWC) to support the immediate commencement of early works for an accelerated drilling program for four new wells, and promptly document and execute gas supply agreements consistent with conditional gas supply term sheets. The term sheets cover uncontracted firm gas production from Mereenie and Palm Valley of up to 25.5 PJ (Central share) to be sold through the end of 2034. The JVs will immediately begin early works for the four-well drilling program, which will involve drilling two wells at Mereenie and another two at Palm Valley, with drilling targeted to commence in mid-2026. The gas supply term sheets are non-binding and conditional, requiring final internal approvals from each JV participant and PWC. The intention is for the parties to formalise and execute binding Gas Sale Agreements consistent with these term sheets by 20 February 2026. The intended supply arrangements are designed to quickly deliver significant new gas volumes to the Northern Territory, while also enhancing gas supply security for customers throughout the region.

The proposed gas supply agreements would provide Central Petroleum with a reliable government-backed income stream well into the next decade, without ongoing exposure to the Northern Gas Pipeline's operations.

The additional gas production from the four-well drilling program can be quickly supplied to the market, as the wells will utilise available production capacity at the existing Mereenie and Palm Valley gas fields.