• Multi-year gas sales agreement to supply up to 21 PJ of gas (10.5 PJ Central share) through to 2034
• Two new wells to be drilled at Palm Valley, expected to increase Central's gas production capacity by circa 40%
• Increased loan facility available to fund drilling and completion costs

Central Petroleum Limited (ASX: CTP) has executed a binding multi-year Gas Sales Agreement ('GSA') with the Northern Territory Government ('the NTG') that will underwrite investment in two new wells at Palm Valley. The GSA will support the Palm Valley Joint Venture in drilling two new wells to supply up to 21 PJ of gas (10.5 PJ Central share) on a firm basis from the second half of 2026, through to the end of 2034. The GSA has a fixed market price with CPI escalation and take-or-pay provisions. The Palm Valley JV has made a Final Investment Decision to drill the two wells on an accelerated basis, with drilling for the first well scheduled to commence in the middle of this year. If the wells deliver at their target production rate, they would initially increase Central's gas production capacity by circa 40%. This GSA replaces the proposed gas supply arrangements previously outlined in a Letter of Intent announced in December 2025 with the Northern Territory's Power and Water Corporation. Central expects its share of Palm Valley drilling and completion costs to be approximately $26 million, inclusive of an allowance for possible elevated diesel prices. To maintain prudent working capital reserves while drilling at Palm Valley, along with exploration wells planned for the Cooper and Otway Basins, Central has increased its existing Macquarie Bank loan facility by up to $15 million, available for drawdown through to 31 December 2026.

If the two new Palm Valley wells are successfully delivered as planned, sales under the GSA will generate strong returns and increase free cash flows from later this year.

Central is positioned with several exciting near-term growth opportunities, including exploration and development activities in the Cooper Basin and Otway Basin, in addition to the new Palm Valley wells.