• Acquires 20% stake in Otway Basin permit PEP169 with Enterprise North prospect
• Acquires 49% stake in 24 Cooper Basin retention leases and permit PEL677
• Plans 3-4 near-term exploration wells in 2026-2027 with production potential

Central Petroleum Limited (ASX: CTP) has entered into binding Sale and Purchase Agreements (SPAs) with ADZ Energy to secure a strategic multi-basin expansion into the onshore Otway and Cooper Basins. The transaction involves acquiring a 20% interest in the Victorian exploration permit PEP169 in the Otway Basin, where the highly prospective Enterprise North gas target has been identified, and a 49% interest in 24 South Australian Retention Leases (PRLs) and exploration permit PEL677 in the Cooper Basin, where extensive seismic surveys have identified several priority oil and gas targets. The agreements include plans for 3-4 near-term exploration wells to be drilled in mid-to-late 2026 and early 2027, with success potentially leading to rapid development and production. The Otway Basin asset provides Central with direct access to the high-value east coast gas market, while the Cooper Basin acreage offers significant potential for oil and gas growth. Central's CEO described the transaction as a pivotal moment, shifting the company from a single-basin producer to a dynamic, multi-basin E&P company with immediate drilling prospects and substantial long-term growth opportunities.

Central expects its acquisition cost to be around $1/GJ for the Enterprise North prospect in the Otway Basin, and less than $1/boe for the initial priority targets in the Cooper Basin, which is very attractive given the proximity to existing infrastructure. A successful outcome from any of the planned 3-4 exploration wells in 2026-2027 would significantly boost Central's production and cash flow.

Over the next 18 months, Central plans to drill four production wells across its existing Mereenie and Palm Valley assets, as well as participate in up to five high-impact exploration wells including Enterprise North, the Cooper Basin, and Jacko Bore/Mt Kitty. The company is entering one of the most impactful periods in its history as it expands its footprint and drilling program across multiple prospective basins.