Central Petroleum Lifts FY26 Revenue as Drilling Advances at Palm Valley

Central ended June with $20.4 million in cash after investing $11.2 million in new exploration acreage during the year. The group secured new multi-year gas contracts running from 2026 to 2034, increasing cash flow certainty and supporting the final investment decision for the two new Palm Valley wells. Final repayment of overlifted gas was completed in May 2026, which Central expects to release about $7 million a year in future cash flow. The existing loan facility was increased by $15 million to provide working capital for accelerated Palm Valley drilling.

Drilling of PV14, the first well in the Palm Valley campaign, began in late July and encountered gas that was observed and flared while drilling through the target reservoir. First gas sales remain targeted for October 2026, subject to successful completion and tie-in, with sustainable production capacity assessed after commissioning and an initial production period. The rig is expected to move to PV15 while PV14 is tied in. Successful completion of both wells is expected to increase available production capacity and support greater use of existing infrastructure, with gross joint venture sales capacity of about 14 terajoules per day.

Managing director and chief executive officer Leon Devaney said the operating business "strengthened through the year" and the company enters FY2027 with "a clear path to stronger results" from new Palm Valley production, lower costs, and the commercial strategy. Devaney also noted up to three exploration wells are planned in the new east-coast permits in 2027.

Central also expanded into the Cooper and onshore Otway basins through new interests, with at least three exploration wells expected across the new acreage over the next 18 months. The group exited two Amadeus Basin exploration permits to reduce holding costs and completed its first on-market share buy-back during the period.