• Multi-year gas sales agreement with Northern Territory Government
• Two new wells to be drilled at Palm Valley, increasing production by ~40%
• Accelerated drilling to take advantage of current market dynamics

Central Petroleum Limited (ASX: CTP) has executed a binding multi-year Gas Sales Agreement (GSA) with the Northern Territory Government (NTG) that will underwrite investment in two new wells at the Palm Valley field. 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 2026. If the wells deliver at their target production rate, they would initially increase Central's gas production capacity by circa 40%. The 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 the Palm Valley drilling and completion costs to be approximately $26 million and has increased its existing Macquarie Bank loan facility to provide access of up to $15 million to maintain prudent working capital reserves while drilling at Palm Valley, along with exploration wells planned for the Cooper and Otway Basins.

The new wells are expected to initially increase Central's gas production capacity by circa 40%. Combined with exploration activity in the Cooper Basin and Otway Basin, Central is positioned with several exciting near-term growth opportunities.