Central Petroleum Limited (C9J) AI Stock Analysis

Company Guidance

Central expects 98% of its expected gas production for calendar year '27 to be contracted, over 80% of expected gas production for the next 3 years contracted, and the gas overlift repayment to release an expected $7 million per year in additional margin and cash flow; the new Palm Valley wells are targeting plant capacity of about 14 terajoules a day, which would boost Central's production revenues by about 40%, with initial production of around 9 TJs per day in aggregate from PV14 and PV15 needed to achieve that, and the total drilling program is currently forecast to exceed budget by about 5% against a total program cost in the order of $50 million, or $25 million for Central's 50% interest. PV14 commissioning is expected before the end of October, PV15 is expected to spud over the next few days and be online by the end of the year, the Enterprise North well and 2 Cooper Basin exploration wells are planned for 2027, targeted for the first half of next year or by midyear subject to joint venture approval, and a sub-salt well at Mt Kitty is potentially planned in early 2028 subject to joint venture approval.