Oil and Gas News

Central reports profit following partial asset sale

Palm valley

Central Petroleum has reported a net profit after tax of $30.5 million for the half year ending 31 December 2021. 

This includes a $36.6 million profit on the sale of half its interests in its three producing gas and oil fields in the Northern Territory. 

The result also reflects $10.1 million of exploration expenses associated with preparations for two new exploration wells at Palm Valley and Dingo, and testing at its Range coal seam gas pilot. 

On 1 October, Central completed the sale of 50 per cent of its interests in the Mereenie, Palm Valley and Dingo fields to New New Zealand Oil and Gas  (NZOG) and Cue Energy Resources. 

The proceeds funded a significant exploration program in those fields and facilitated the repayment of $32 million of debt. 

In the last half-year, Central also entered a new gas sales agreement for the sale of up to 3.15 PJ of gas over four years from 1 January 2022. 

Net sales of oil and gas were 3.81 PJ for the half year, compared with 5.16 PJ sold in the previous six months, reflecting the lower ownership interests following the partial asset sale. 

During the period, two new production wells at Mereenie were drilled and brought online. 

Gas and oil reserves increased across the three fields, and testing continued on the three-well pilot program at the Range Gas Project. 

Central chief executive and managing director Leon Devaney said the results for the six months were “solid”, supported by a strong market and high demand for its fields in the Amadeus Basin. 

“The $36.6 million profit on the partial sale of our production assets was a great result which clearly drove the headline profit future,” said Devaney. 

“The proceeds have allowed for debt reduction and are now funding our share of over $100 million in exploration and development across these permits.” 

Central has also entered into a farmout of interests in the Amadeus Basin to Peak Helium. 

This will resulting new sub-salt exploration wells, expected to be drilled in 2023. 

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