Our growth potential – guided by a clear strategy
ASX listed oil and gas company, Central Petroleum, has significant productive and prospective permits spanning over 170,000 km² in Queensland and the NT. Leveraging these valuable assets, Central is progressing a growth strategy to supply increasing volumes of gas to the east coast gas market, becoming an increasingly significant Australian energy supplier.
Our growth strategy will help address under-supply within the east coast gas market and build value for our shareholders. Key projects include further active exploration and development within the proven, yet under-explored, Amadeus Basin (NT) where we are well established.
Expansion, maiden profit and local benefits
The new Northern Gas Pipeline was commissioned in early 2019, opening a route for NT gas to reach Mount Isa and east coast markets. In anticipation, Central expanded Amadeus Basin production, tripling gas sales between 2017 and 2020. In 2020 we posted our maiden profit despite the severe disruption to global energy markets from the COVID-19 pandemic.
Central Petroleum is committed to local benefit across our projects by ‘buying local’ where possible, and a portion of our NT workforce (around 39%) is drawn from local communities. Of those employees that live locally, we have a high proportion of indigenous employees in the NT (approximately 22%) and regularly provide sponsorship and other support to local communities. In FY2023, Central paid over $2.6 million of royalties and fees to the Northern Territory Government and Central Land Council, and with its partners, spent over $3 million on local contractors and businesses.
Australian oil and gas – our commercial strategy
Central Petroleum has a robust operational base, with a range of fixed-price, fixed-term sale contracts in place, providing a steady income stream from our producing fields in the Amadeus Basin.
As Australia transitions to lower-carbon energy sources, natural gas is set to provide reliable, affordable energy to Australia’s manufacturers, generators, and households. Central has a clear commercial strategy to build value for our shareholders by unlocking and commercialising the vast energy potential within Central Australia (NT), along with a highly prospective Surat Basin resource (Qld). We will do this in a sustainable and environmentally responsible manner, while ensuring local social and economic benefit within the communities where we operate.
We seek to achieve our commercial strategy by:
Prioritising lower risk projects which utilise existing established infrastructure.
Utilising farm-out arrangements to accelerate / fund higher-risk, higher-return prospects.
Continually adding industry-leading talent across our Board, Management, and operational levels .
Seeking diversification of outputs and products such as helium and hydrogen, where commercially attractive.
Oil and gas industry
Central Petroleum – our core values
These core values aim to make Central a corporate leader and attractive partner in the oil and gas industry as we continue to make a positive and long-lasting contribution to Australia’s energy future.
Our commercial strategy is underpinned by our core values:
We put safety first
We respect the environment and the communities we work with
We value our people and stakeholders
We work hard, efficiently, and effectively as a team
We listen to and work in partnership with stakeholders
We engage in a collaborative manner and act with integrity
We are committed to increasing shareholder value
We are dynamic and agile
We are professional, resourceful and proficient
Central Petroleum – supplying Australia’s energy future
Natural gas is a vital and reliable energy source for Australia’s manufacturing and electricity industries. However, supply to the eastern seaboard market is constrained, with large volumes of gas exported to supply international markets.
Limitations to onshore exploration and development in Victoria and New South Wales has also constrained supply, with a shift towards exploration for new gas resources in previously unexplored and under-explored regions in Northern and Central Australia.
With the commissioning of the Northern Gas Pipeline from Central Australia in 2019, Central’s gas production, development capacity and exploration potential are now linked to the east coast gas market. To leverage increased market access, capacity at both the Mereenie and Palm Valley fields (NT) has been expanded. We have also increased exploration activity to secure additional reserves and have introduced new partners, such as New Zealand Oil & Gas and Cue Energy Resources.
In addition to NT operations, Central and joint venture partner, Incitec Pivot, are also progressing the Range Gas Project within Queensland’s proven Surat Basin.
Assisting the transition away from coal: The Australian energy market is in a state of transformation from traditional coal-fired electricity generation to renewable sources. Natural gas provides an ideal transitional fuel, being cleaner than coal, a reliable complement to renewables, and able to respond relatively quickly to fluctuating network supply and demand.
Australia's Energy Future.
Central Petroleum, through our existing oil and gas production base, new development projects and enormous exploration potential is well-positioned to play an increasing role in Australia’s energy future.