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CENTRAL PETROLEUM LIMITED
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Central Petroleum Limited (CNPTF) Quarterly Report, Maintains Gas Sales and Progresses Palm Valley Drilling

2026-10-29 20:26 ET - News Release

Brisbane, Australia, Oct 30, 2026 - (ABN Newswire) - Central Petroleum Limited (ASX:CTP) (FRA:C9J) (OTCMKTS:CNPTF) reported gas sales volumes of 1.0 PJ for the quarter ended 30 September 2026, a 1% increase on the June quarter, and continued its two-well Palm Valley drilling program.

Highlights

- Palm Valley drilling: PV14, the first of two new Palm Valley wells, spudded on 25 July and commenced gas sales on 23 October. Initial rates of around 0.5 TJ/d are below the 3-4 TJ/d indicated by pre-completion flow tests, possibly due to water loading. A clean-out is planned within the next month, subject to JV approval, after which the sustainable rate can be assessed.

- Sales revenue: $10.8m, in line with the June quarter. Gas revenue was steady, with a 1% increase in gas sales volumes to 1.0 PJ offset by a 1% lower average realised gas price, reflecting the contract delivery mix. Oil revenue fell following the suspension of Mereenie oil sales.

- Net operating inflows before net interest and exploration costs: $4.1m. Gaspurchase costs fell by $1.7m following the end of payments for previously overlifted gas, offset by one-off and annual payments, including accumulated FY2026 staff cost recoveries from joint ventures and annual staff incentives.

- Exploration andappraisal expenditure: $7.8m, predominantly PV14 mobilisation and drilling costs.

- Capital expenditure: $1.9m, including surface facilities for the new Palm Valley wells and sustaining capital.

- Cash balance: $14.9m at 30 September, down from $20.4m at 30 June.

- Net debt: $11.25m at 30 September, reflecting the lower cash balance and capitalised September quarter interest.

Subsequent to quarter end

- PV15, the second well in the Palm Valley drilling program, spudded on 18October and had reached 1,102m MD by 30 October. If successful, the well is expected to be online by late December 2026.

Production Activities

SALES VOLUMES

Central's share of gas and oil sales from its Northern Territory (NT) fields was1.0 PJe in the September quarter, 1% higher than the June quarter.

SALES REVENUE

Sales revenue was $10.8m, 1% lower than the June quarter. Gas revenue was steady, with a 1% increase in gas sales volumes offset by a 1% lower average realisedgas price, reflecting the contract delivery mix. Oil revenue fell following the suspension of Mereenie oil sales.

MEREENIE OIL AND GAS FIELD (OL4 AND OL5) - NORTHERN TERRITORY

CTP - 25% interest (and Operator), Echelon Mereenie Pty Ltd - 42.5%, Horizon Australia Energy Pty Ltd - 25%, Cue Mereenie Pty Ltd - 7.5%

Average gross gas sales were 25.9 TJ/d (Central share 6.5 TJ/d), 2% higher than the maintenanceinterrupted June quarter.

Gas sales capacity was approximately 25.5 TJ/d (100% JV) at quarter end.

Oil sales were suspended indefinitely after a July lifting due to revised oil specification requirements.

Central is pursuing alternative sales arrangements for Mereenie oil.

PALM VALLEY (OL3) - NORTHERN TERRITORY

CTP - 50% interest (and Operator), Echelon Palm Valley Pty Ltd - 35%, Cue Palm Valley Pty Ltd - 15%

Production averaged 5.6 TJ/d (Central share: 2.8 TJ/d), consistent with the June quarter.

Sales capacity was approximately 5.8 TJ/d (100%JV) at quarter end. The new PV14 well was tied in and commenced production on 23 October 2026.

If successful, PV15, the second well in the program, is expected to lift Palm Valley production capacity towards the 14 TJ/d plant capacity from lateDecember 2026.

DINGO GAS FIELD (L7) - NORTHERN TERRITORY

CTP - 50% interest (and Operator), Echelon Dingo Pty Ltd - 35%, Cue Dingo Pty Ltd - 15%

Dingo supplies gas directly to the Owen Springs Power Station in Alice Springs. Sales averaged 4.09 TJ/d (Central share: 2.0 TJ/d), close to contract maximums despite slightly lower seasonal demand.

Palm Valley Drilling Program

CTP - 50% interest (and Operator), Echelon Palm Valley Pty Ltd - 35%, Cue Palm Valley Pty Ltd - 15%

PV14

Drilling of the PV14 well, the first of two new Palm Valley wells, commenced on 25 July 2026. PV14 is a conventional deviated appraisal well targeting the Pacoota P1 Sandstone as the primary productive interval.

PV14 reached a total depthof 2,942m MD (measured depth), or 2,096m TVD (true vertical depth). Open-hole packers were set to isolate anticipated water ingress points, with the final packer set at 2,729m MD (2,041m TVD).

The well was completed, tied in and commenced flowing through the Palm Valley gathering system on 23 October 2026.

Pre-completion flow tests in October indicated the well could produce at 3-4 TJ/d. Since tie-in, however, PV14 has flowed at around 0.5 TJ/d, possibly due to water loading. The sustainable production rate cannot be confidently assessed until the well is cleaned out, which, subject to JV approval, is expected within the next month.

PV15

Drilling of PV15, the second well in the program, commenced on 18 October 2026. The deviated well is located 2.3km from PV14 and targets the southern flank of the Palm Valley anticline, rather than the northern flank targeted by PV14. PV15 will be only the second well, after the successful PV12, to directly access the southern flank. It is also closer to the field crest and further up-dip from possible water sources than PV14.

At 6am on 30 October, PV15 had reached 1,102m MD of a planned 3,114m MD. If successful, the well is expected to be online by the end of the year.

Exploration Activities

OTWAY AND COOPER BASINS

Enterprise North (Otway Basin, Victoria, PEP169) and Cooper Basin permits (South Australia, PEL677 and various PRLs), operated by ADZ.

CTP - 20% interest (PEP169, Otway Basin); 49% interest (Cooper Basin permits)

Central continues to work with operator ADZ to progress an exploration well at Enterprise North in the onshore Otway Basin (PEP169) and to reprocess seismic data to optimise drilling locations for two Cooper Basin wells (PEL677 and retention leases).

Health, Safety and Environment

Central recorded no reportable safety incidents in the September quarter and its Total Recordable Injury Frequency Rate (TRIFR) was nil at quarter end.

A minor spill of approximately75 bbl of drilling fluid occurred at the PV14 drill site. No long-term environmental impact is anticipated.

Corporate

CASH POSITION

Cash was $14.9m at 30 September, down from $20.4m at 30 June, mainly due to Palm Valley drilling costs, annual staff incentive payments and accumulated adjustments to FY2026 staff recharges to joint ventures.

Net operating cash outflows of $3.5m comprised:

- Customer receipts of $12.3m;

- Production and gas purchase costs of $5.4m, $0.7m lower than the previous quarter. The cessation of payments for previously overlifted gas saved $1.7m, partly offset by annual operational staff incentive and lease payments;

- Staff and corporate costs of $2.8m, including annual corporate staff incentives and accumulated adjustments to FY2026 staff recharges to joint ventures;

- Exploration and appraisal expenditure of $7.8m, including $7.1m for PV14 mobilisation and drilling; and

- Net interest receipts of $0.2m. The scheduled $0.8m quarterly loan interest payment was capitalised into the loan balance.

Capital expenditure was $1.9m, including surface facilities for the new Palm Valley wells and sustaining capital.

Net debt was $11.25m at 30 September, reflecting the lowercash balance and capitalised September quarter interest.

Fees, salaries and superannuation paid to directors during the quarter, including the CEO and Managing Director's salary and annual incentive, totalled $0.465 million, as disclosed at item6.1 of the Appendix 5B.

The statement of cash flows for the quarter and financial year to date is attached as Appendix 5B.

ISSUED CAPITAL

At the end of the quarter there were 750,578,825 ordinary shares on issue.

*To view September Quarterly Report, please visit:
https://abnnewswire.net/lnk/VY400COD

About Central Petroleum Limited:

Central Petroleum Limited (Central) is an established ASX-listed Australian oil and gas producer (ASX:CTP) with exploration and appraisal permits in the Northern Territory (NT). Central has grown to become the largest onshore gas operator in the NT, supplying residential and industrial customers in the NT and wider Australian east coast market.

Central is seeking to become a major domestic energy supplier, in addition to helium and naturally occurring hydrogen, with exploration, appraisal and development plans across 169,112 km2 of tenements the NT, including some of Australia's largest known onshore conventional gas prospects in the Amadeus Basin.

Contact:

 
Investor and Media Inquiries: 
Leon Devaney: +61 (0)7 3181 3800
Managing Director and CEO 
info@centralpetroleum.com.au
www.centralpetroleum.com.au