Central Petroleum Limited (ASX: CTP) ('Company' or 'Central') announces that its customer Incitec Pivot (ASX: IPL) ('Incitec') has advised Central that its Gas Sale Agreement with Incitec is now anticipated to commence between 29 December 2018 and 10 January 2019.
These dates reflect when the Northern Gas Pipeline ('NGP') is anticipated to be ready for Commercial Operations. Central is currently selling commissioning gas to Jemena, and this is expected to ramp up as the date for NGP Commercial Operations approaches.
Central also announces that the Mereenie Facility Upgrade and Palm Valley Restart Projects have now been brought into production. All key processing and production equipment is installed and running, except for the new Field Boost Compressor ('FBC') at Mereenie which is installed and currently undergoing run testing. This is an outstanding result given that these projects were fast tracked to maximise gas sales through the NGP. The Mereenie Upgrade was delivered only 8 months after ordering long-lead items, which is at least 3 months earlier than the draft initial schedule. This means more gas can be sold this financial year. Central congratulates all parties that have contributed to this result including Traditional Owners, Central Staff and Project Contractors.
Once the run testing of the new FBC is complete, the Mereenie Gas Field will be capable of delivering 44 TJ/d of sales gas on a firm basis (Phase 1 of the Gas Acceleration Programme) plus additional capacity on a non-firm basis. In addition, the Palm Valley facility now has 15 TJ/d of sales gas capacity. With three existing wells already online, one existing well to be brought into production shortly and the PV13 well scheduled to be tied in early next year, Palm Valley is on track to produce at nearly triple the average gas rate prior to being shut-in. Gas sales from Mereenie and Palm Valley will step up following commissioning of the NGP.
With the completion of run testing, delivery of these Projects will represent the culmination of the Gas Acceleration Programme and its objective of delivering Central transformational growth by nearly tripling its gas sales.
General Disclaimer and explanation of terms: This document may contain forward-looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which may be outside the control of the Company and could cause actual results to differ materially from these statements. These risks, uncertainties and assumptions include (but are not limited to) funding, exploration, commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals, cost estimates and other risk factors described from time to time in the Company's reports filed with the ASX. Actual values, results or events may be materially different to those expressed or implied in this document. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statement in this document is valid only at the date of issue of this document. Subject to any continuing obligations under applicable law and the ASX Listing Rules, or any other Listing Rules or Financial Regulators' rules, the Company, its agents, directors, officers, employees, advisors and consultants do not undertake any obligation to publicly update or revise any information or any of the forward looking statements in this document if events, conditions or circumstances change or that unexpected occurrences happen to affect such a statement. Sentences and phrases are forward looking statements when they include any tense from present to future or similar inflection words, such as (but not limited to) 'believe,' 'understand', 'estimate,' 'anticipate,' 'plan,' 'predict,' 'target,' 'may,' 'hope,' 'can,' 'will,' 'should,' 'expect,' 'intend,' 'projects', 'is designed to,' 'with the intent,' 'potential,' the negative of these words or such other variations thereon or comparable terminology or similar expressions or future may indicate a forward looking statement or conditional verbs such as 'will,' 'should,' 'would,' 'may' and 'could' are generally forward-looking in nature and not historical facts.
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