Central Petroleum (ASX:CTP) has signed binding sale and purchase agreements with ADZ Energy to expand strategically into the highly prospective onshore Otway and Cooper basins, marking its transition into a multi-basin oil and gas exploration and production company.
Under the deal, Central will acquire a 20% interest in Victorian permit PEP169 in the Otway Basin, which hosts the Enterprise North gas prospect scheduled for drilling in mid to late 2026, and a 49% interest in 24 South Australian retention leases and exploration permit PEL677 in the Cooper Basin, where two to three exploration wells are planned for late 2026 to early 2027.
Consideration includes an upfront payment of $9.2 million plus back-costs, a $3.9 million success payment linked to a commercial discovery at Enterprise North, and a 5% royalty on future Cooper Basin production, with ADZ remaining operator.
Central said the acquisition provides near-term drilling exposure, access to the high-value east coast gas market, and significant longer-term growth potential, with completion subject to financier consent and security releases by Jan. 16, 2026.