An Australian energy company is set to drill two new gas wells at the Palm Valley project in the country’s onshore Amadeus Basin, after approving a fresh development plan linked to a new gas sales agreement.

The project operator, Central Petroleum, says the drilling programme will take place this year as part of efforts to boost output from the long-running gas field and support supply commitments under the new deal.

Palm Valley, located in the Amadeus Basin, is one of the region’s older gas-producing areas and has seen limited activity in recent years. The last drilling work at the site took place in 2022.

The new wells are expected to help increase production and extend the field’s contribution to domestic gas supply in central Australia.