Central Trims Losses as it Eyes Hungry E Oz Market

Australian Central Petroleum narrowed its losses in the 2017-2018 (July-June) fiscal year as it pushes ahead with its plan to become a “significant” supplier to the hungry east coast Australian gas market, the company said September 28.

Central’s loss after tax was A$14.08 million ($10.15mn) for the 12-month period, which is 43% better than the A$24.73mn seen the year prior.

The company’s acting CEO, Leon Devaney said the fiscal period was a key year for Central for its “strategy to become a significant supplier into the east coast gas market following completion of the Northern Gas Pipeline scheduled for December this year”.

“We have been able to not only grow our existing operations, but have significantly progressed our key growth initiatives,” he added.

The company flagged highlights for the year, including Australia’s competition watchdog, the ACCC, approving joint marketing for its Mereenie project, a successful bid on Queensland Surat Basin coal seam gas acreage and an agreement to form a joint venture with Incitec Pivot who fill fund the initial exploration and appraisal works, gas pipeline reforms and a new 20 TJ per day gas sales agreement signed with Incitec.

Central sold 105,619 barrels of oil during the year, down 5% from the year prior, and 4,842 TJ of gas, up 46% year on year, it said.

Central is the largest onshore gas producer in the Northern Territory (NT) and operator of the only producing onshore conventional gas fields in the territory at Mereenie, Palm Valley and Dingo, it says on its website.

The company stands to benefit once the NT is linked to the eastern seaboard by the Northern Gas Pipeline.