Highlights
Central Petroleum has entered into binding Sale and Purchase Agreements (SPAs) with ADZ Energy to secure a strategic multi-basin expansion into highly prospective conventional exploration permits in the onshore Otway and Cooper Basins. The transaction involves three to four near-term exploration wells planned for drilling over 2026 and early 2027, along with significant ongoing growth opportunities through other oil and gas prospects as the permits are matured.
The key terms of the transaction are:
• Central to acquire a:
- 20% interest in the Victorian exploration permit PEP169 in the onshore Otway Basin where extensive seismic surveys have identified, among other substantial conventional prospects, the highly prospective Enterprise North (“EN”) gas target. The EN exploration well (to become a production well on success) is scheduled to be drilled in mid to late 2026; and
- 49% interest in 24 South Australian Retention Leases (PRLs) and exploration permit PEL677 in the prolific Cooper Basin, where extensive seismic surveys have identified, among other substantial conventional oil and gas targets, eleven priority oil leads, with two to three exploration wells (to become production wells on success) scheduled to be drilled in late 2026 / early 2027.
• Consideration for the acquisition:
- $9.2m upon completion plus Central’s participating interest share of specified back-costs;
- $3.9m success payment conditional on commercial success from the planned exploration well at EN; and
- A 5% royalty on future production from Central’s 49% interest in the Cooper acreage.
• ADZ to continue as operator.
• Completion of the Sale and Purchase Agreements is conditional on consent from Central’s financier and ADZ obtaining certain security releases, by 16 January 2026.
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Source: Central Petroleum
