• Sales revenue up 8.7% to $11.3m due to higher gas volumes and prices
• Cash balance down to $19.5m after $10.9m spent on new exploration permits
• New multi-year gas supply agreement secured with NT Government

Central Petroleum reported sales revenue of $11.3m for the March quarter, an 8.7% increase from the previous quarter, driven by higher gas sale volumes and realised gas prices. Gas sales volumes were 3% higher than the prior quarter, which was impacted by oil offtake constraints. New higher-priced contracts and indexation of existing contracts resulted in a 5% increase in average gas prices to $10.06/GJ. The company's cash balance at the end of the quarter was $19.5m, down from $29.4m at the end of December, primarily due to $10.9m spent on the acquisition of interests in exploration permits in the Otway and Cooper Basins. Operationally, there were positive net operating cash inflows of $3.8m before net interest and exploration costs. Exploration and appraisal expenditure was $1.9m, including site preparation and equipment procurement for two new wells to be drilled at the Palm Valley field in the first half of fiscal year 2027. Central's net debt at the end of March was $5.2m. Subsequent to the quarter, the company announced a new multi-year gas supply agreement with the Northern Territory Government to supply up to 10.5 PJ (Central's share) of gas through to the end of 2034. The agreement supports the drilling of two new wells at Palm Valley, which are expected to initially increase Central's gas production capacity by around 40%.

The new multi-year gas supply agreement with the Northern Territory Government, and the planned drilling of two new wells at the Palm Valley field, are expected to significantly increase Central Petroleum's gas production capacity by around 40% from the second half of 2026 onwards.