The Mereenie and Palm Valley joint ventures have reached a non-binding agreement with the Northern Territory’s Power and Water Corp. (PWC) for the sale of gas from the two fields through to 2034.
Under the proposed terms, PWC will support the immediate commencement of early works for a four-well drilling program. The joint ventures will immediately start on early works, including ordering long-lead items, progressing civil works and selecting a drilling rig.
The drilling program will include two wells each at the Meerenie and Palm Valley fields, targeting a mid-2026 drilling start.
Central Petroleum, Cue Energy, Echelon and Horizon Australia Energy are the joint venture partners in the Mereenie and Palm Valley ventures. Central Petroleum holds a 25 per cent interest in the Mereenie field and a 50 per cent interest in the Palm Valley field.
Central Petroleum CEO Leon Devaney said the gas sale term sheets signify a substantial commitment by both the joint venture partners and the PWC to increase gas supply from the Amadeus Basin.
“The drilling program is targeting the delivery of additional gas supply, equivalent to over 20 per cent of the Northern Territory’s total gas demand, from the middle of next year.
“Importantly, gas production from the Amadeus Basin is sourced from conventional gas fields, underpinned by proven reserves and a strong track record of reliability.” The joint venture partners and PWC have finalised in-principle terms, covering gas production of up to 25.5 petajoules from the gas fields through the end of 2034.
The parties will formalise and execute binding agreements by February 20, 2026. C
ue Energy CEO Matthew Boyall said: “The Mereenie and Palm Valley fields have been important contributors to the Northern Territory’s energy supply. This Letter of Intent supports new development activity and long-term gas supply, helping to ensure reliable, locally sourced energy for the Territory through to 2035.
“This is an exciting opportunity for Cue with short term production growth and long-term contract stability. We look forward to finalising agreements and commencement of the four-well drilling program in mid-2026.”