Central Petroleum Limited (ASX:CTP) Signs Drilling Contract with Ensign
(MENAFN- ABN Newswire) Brisbane, Feb 2, 2018 AEST (ABN Newswire) - As foreshadowed in the recent quarterly report, Central Petroleum Limited () () ("Company" or "Central") has contracted with Ensign Australia Pty Ltd to use its presently mothballed Rig 932 for a forthcoming drilling programme of up to four wells. Central has structured the commercial arrangements on the basis that only two wells need to be drilled, for example, Palm Valley and Ooraminna (which permits it holds 100%) with an option of another two wells at Mereenie. Joint Venture approval for the Mereenie wells is subject to ACCC interim clearance of joint marketing with the ACCC still considering the Company's application.
While the Company would prefer to commence its programme at Mereenie, if there is a further delay in the ACCC deliberation then the first well to be spudded will be at Palm Valley. Under the timetable the first well should be spudded in 6-8 weeks' time with each well taking slightly more than 30 days. The wells at Mereenie will have a deviated lateral of over one kilometre designed to intersect the natural fractures in the sandstone. None of the wells in the drilling campaign are intended to be fracture stimulated.
About Central Petroleum Limited
()() is an oil and gas explorer and producer listed on the Australian Securities Exchange focused on supplying the domestic gas market. Central is advancing several separate projects across what is regarded as the biggest package of proven and prospective oil and gas acreage across central Australia. This spread of assets gives Central multiple options for growth and development. 88% of this land being gas prone has led to the Company's focus on becoming a major domestic gas producer.
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