The agreement has been made via a back-to-back agreement with Macquarie Mereenie.
The contract will commercialise a portion of the increased production made available by the recent Mereenie development campaign, which saw two new production wells drilled and four existing wells re-completed.
Earlier in the month, the Australian Competition & Consumer Commission (ACCC) issued a draft determination to allow joint marketing arrangements for natural gas produced from the Mereenie gas field.
The authorisation allowed current and future joint venture participants to jointly market gas from the field for five years.
This most recent gas supply agreement will extend the period of production under contract.
NZOAG’s product will be aggregated with gas from Macquarie Mereenie, Cue Energy and Central Petroleum to supply a total of 12.6 PJ over 4 years, commencing 1 January 2022.
The company’s chief executive officer Andrew Jefferies said he was happy with the result of the agreement.
“This is a great outcome, with the new agreement selling uncontracted gas at a price consistent with our expectations when buying the assets.”
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