Production and Contracts

Gas was first supplied under contract to Alice Springs in 1984, and subsequently to Darwin from 1986. These contracts lapsed in 2012 and a new contract commenced in 2014, shortly after Central assumed ownership from Magellan. Gas is produced from five wells and compressed. One well is used to reinject water and two wells are used for pressure monitoring. Three wells did not intersect sufficient fractures and were abandoned.

As a result of the acquisition of the Palm Valley Gas Field effective 1 April 2014, Central commenced receiving revenue from gas sales. This led to the company becoming a multi-field oil and gas producer in the Amadeus Basin as well as an oil and gas explorer in this basin.

Gas sales are per nominations received from the purchaser. The Palm Valley Gas Field and the pipeline have capacity to produce and deliver at higher volumes and Central is looking to secure additional sales contracts.

Once in full operation the total sales of gas from Palm Valley and Dingo should reach over 3.3 PJ per annum providing an operating profit before interest and taxes of over $5 million annually. Central is actively seeking further sales in the Northern Territory.