Central Petroleum (ASX:CTP) Brings PV14 Online as PV15 Drilling Gets Underway

Sonal Goyal

30 October 2026 05:27 PM AEDT

Central Petroleum (ASX:CTP) Brings PV14 Online as PV15 Drilling Gets Underway

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Highlights

Sales revenue was $10.8m from 1.0 PJe of sales volume.
The PV14 well at Palm Valley began gas sales on 23 October 2026, although initial rates were below expectations.
The second Palm Valley well, PV15, was spudded on 18 October 2026.
Cash was $14.9m at 30 September, with an estimated funding runway of about nine quarters.

Central Petroleum Limited (ASX:CTP) has released its quarterly review for the period ended 30 September 2026. The Northern Territory gas producer reported steady sales, completed its first new Palm Valley well and began drilling a second.

Production and Sales

Total sales volume was 1.0 PJe, 1% higher than the June quarter. Sales revenue was $10.8m, with gas revenue of $10.7m at an average realised price of $10.28/GJ.

At Mereenie, gross gas sales averaged 25.9 TJ/d, while oil sales were suspended indefinitely after a July lifting due to revised oil specification requirements. Central is pursuing alternative sales arrangements. Palm Valley produced 5.6 TJ/d, and Dingo sold 4.09 TJ/d to the Owen Springs Power Station in Alice Springs.

Palm Valley Drilling Program

PV14 was spudded on 25 July 2026 and reached a total depth of 2,942m MD. It began gas sales on 23 October 2026, but initial rates of about 0.5 TJ/d were well below the 3 to 4 TJ/d indicated by pre-completion flow tests, possibly due to water loading. A clean-out is planned within about a month, subject to joint venture approval.

PV15 was spudded on 18 October 2026 and had reached 1,102m MD by 30 October, against a planned depth of 3,114m MD. The well targets the southern flank of the Palm Valley anticline, closer to the field crest. If successful, it is expected online by late December 2026 and should help lift production toward the plant's 14 TJ/d capacity.

Cash Flow and Funding

Net operating inflows before interest and exploration costs were $4.1m. Exploration and appraisal spending was $7.8m, mostly on PV14, and capital expenditure was $1.9m. Cash fell to $14.9m from $20.4m, and net debt was $11.25m.

Central has a $43.0m Macquarie Bank term loan, with $26.3m drawn and $16.7m unused. Principal repayments begin in March 2027. The company estimates about nine quarters of funding. No reportable safety incidents occurred during the quarter.

Key Takeaways

Sales held steady at around 1.0 PJe for the quarter.
PV14 is online, but early flow rates were below test results and a clean-out is planned.
PV15 targets a different part of the field and could add production by late December.
Mereenie oil sales remain suspended while alternatives are pursued.

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