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Central signs gas agreement with Macquarie

23 Oct 2020 1:02 PM | Sonia Harvey (Administrator)

AUSTRALIAN oil and gas company Central Petroleum has varied its sales agreement for 3.5 petajoules of gas per annum with Macqurie and secured  a 12 month extension to its finance facility with the bank. 

The agreement changes a prior arrangement for the bank to hold an option to take gas between 2022-23 to it making a firm payment by December 15, giving the Northern Territory and Queensland-focussed company immediate funds for development work at the Mereenie gas field. 

Central will supply the gas to the bank or its nominee over 2022-23.  

It plans the recompletion of four existing wells and the drilling of two new production wells in the Top End.  

The project will add 5 terajoules of gas per day bringing the total to 45TJ/d with 20TJ/d net to Central.  

The company was given the all clear by the Top End regulator this week for the field work.  

The new close date for the $70 million facility is the end of September 2022.  

Central and Macquarie first struck a gas sales and prepayment agreement in May 2016 for 5.2PJ of gas for delivery this and next year.  

"The new deal will essentially continue gas deliveries to Macquaries at the same rate for a further two years," Central said.  

This brings its contracted gas sales to 7.5PJ for 2022 and 5.2PJ in 2023.  

It also preserves firm contracting capacity for delivery through the proposed Amadeus to Moomba gas pipeline, which could be online by 2024. 

Source: Energy News Bulletin

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