Central Petroleum Limited (CNPTF) Half Year Accounts
Central Petroleum Limited (ASX:CTP) (FRA:C9J) (OTCMKTS:CNPTF) outlook for 2025 radiates optimism, a stark contrast to the challenges of recent years, as the market begins to recognize the value of its Northern Territory gas fields. The past two years saw the company grappling with unexpected closures of the Northern Gas Pipeline, which rattled markets across northern Australia and squeezed Central's revenues, cash flows, and investment confidence. Yet, through strategic pivots, the company has not only weathered the storm but emerged with a stronger footing, signaling a potential turning point for its operations.
In 2024, Central took bold steps to neutralize pipeline risks, redirecting all available gas into as-available contracts within the Northern Territory starting in April, a move that shored up supply amid dwindling offshore resources. More significantly, new long-term contracts with the Northern Territory Government, effective January 1, 2025, and extending to 2030, have locked in firm production at favorable rates. This stability fueled the drilling of two new wells at Mereenie-completed ahead of schedule, under budget, and delivering 50% more output than anticipated. The result? A half-year EBITDAX of $8.6 million and a cash reserve of $23.4 million, setting the stage for a robust second half of FY2025, with January's average portfolio price jumping 21% to $9.70/GJe from $7.96/GJe.
The road ahead looks promising as Central leverages higher prices, reliable demand, and expanded capacity to bolster its financial health. With a refinanced debt facility and improving cash flows, the company is eyeing shareholder returns and further investments, potentially alongside joint venturers at Palm Valley or Mereenie's Stairway Sandstones. As outgoing Chair hands the reins to Agu Kantsler in April, Central's leadership transition caps a period of resilience and renewal. Supported by its team, partners, and stakeholders, the company has laid a solid foundation over the past six months. If 2025 unfolds as expected, Central Petroleum could redefine its role in the region's energy landscape, rewarding those who've stood by it through turbulent times.
*To view the half yearly report, please visit:
https://abnnewswire.net/lnk/CT7E9BSB
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