Central Petroleum Ltd. and Power and Water Corp. (PWC), Northern Territory, Australia, have signed a binding Letter of Intent (LOI) for drilling and long-term gas supply.
Central Petroleum and its Mereenie and Palm Valley joint venture partners will immediately begin early works for a four-well drilling program in central Northern Territory, which includes ordering long-lead items, progressing civil works, and selecting a drilling rig.
The program envisions drilling wells in the Amadeus basin—two at Mereenie field and another two at Palm Valley field—in mid-2026. The wells will utilize available production capacity at the fields.
Terms have been finalized for long-term gas supply of up to 25.5 petajoules through end-2034, which includes additional production from the four-well program. The gas supply term sheets are non-binding and conditional, requiring final internal approvals from each JV participant and PWC to execute binding agreements by Feb. 20, 2026.
Central Petroleum, via subsidiaries, holds a 25% interest in Mereenie field, with JV partners Echelon Mereenie Pty Ltd., Horizon Australia Energy Pty Ltd., and Cue Mereenie Pty Ltd. Central holds 50% interest in Palm Valley field, with JV partners Echelon Palm Valley Pty Ltd. and Cue Palm Valley Pty Ltd.
