Gas Market Update

Posted on 5 May 2022

New Zealand Oil & Gas as part of the Mereenie Joint Venture, has entered into tradingand transportation agreements enabling sales of uncontracted gas into East Coasttrading hubs, including Brisbane and Sydney Short Term Trading Markets (STTMs),which currently offer premium gas pricing.

The first East Coast spot market sale was conducted on 3 May 2022 and achieved an ex-field price (sales price net of all transportation costs) of over $13/GJ, which is significantly more than the average firm contracted sales price. Pricing at the varioushubs is currently around $16.00/GJ and reached $19.87/GJ in Sydney and $19.80/GJ in Brisbane during April.

Approximately 85% of Mereenie gas is contracted under firm gas supply contracts withthe remaining uncontracted volumes previously limited to sales in the Northern Territory. These new agreements provide the opportunity to sell into East Coast spot markets andmaximise revenue and margins for uncontracted gas. More details are included in Central Petroleum’s ASX release linked here.

Andrew Jefferies CEO of New Zealand Oil and Gas says, “I’d like to thank CentralPetroleum for their work and initiative in enabling access to the high value East Coast spot markets for our uncontracted gas”.

New Zealand Oil & Gas has a 17.5% interest in the Mereenie License, and a 35% interest in both the Dingo and Palm Valley Licenses; Cue Energy Resources has 7.5% interest in theMereenie License, and a 15% interest in both the Dingo and Palm Valley Licenses; New Zealand Oil & Gas owns 50.04% of Cue Energy Resources