(MENAFN- ABN Newswire)
Central Petroleum Limited (ASX:CTP) (FRA:C9J) (OTCMKTS:CNPTF) advises that as at 0600 hrs ACST on 20 August 2022, the Palm Valley 12 (PV12) well in OL3, Southwest of Alice Springs in the Northern Territory was at a measured depth of 2,431m in the lower P2 and P3 units of the Pacoota Formation. Water has been recovered from the wellbore and chemical analysis has determined it to be formation water. A combination of the presence of formation water and the absence of significant gas shows during drilling has led to a decision by the joint venture to curtail further drilling in the lower P2 and P3 sidetrack. Preparations are now underway to plug and abandon this lateral section of the well and prepare for sidetrack operations into the P1 unit of the Pacoota Formation.
The P1 formation is the currently producing formation at Palm Valley. A successful PV12 lateral in the P1 formation will be tied into existing production facilities and sold into strong Northern Territory and east coast gas markets.
'A disappointing result, however, we have learned a lot about fracture systems at Palm Valley and what it will take to test deeper formations in the future. Whilst new gas resources from the P2/P3 would have been a great upside, the Palm Valley field remains robust, and we'll now focus on endeavouring to increase gas sales through a PV12 production lateral in the P1.' said Leon Devaney, Central's CEO and Managing Director. 'In addition to the P1 sidetrack activities, the current drilling and exploration program includes three sub-salt exploration wells, further production adds at Mereenie, and potentially new exploration activity at our Mamlambo and Zevon prospects.'
The PV12 ST1 well is being drilled under a joint venture between Central (50% interest), New Zealand Oil & Gas Limited (ASX:NZO) (35% interest) and Cue Energy Resources Limited (ASX:CUE) (15% interest).
(ASX:CTP ) is a well-established, and emerging ASX-listed Australian oil and gas producer. In our short history, Central has grown to become the largest onshore gas producer in the Northern Territory (NT), supplying industrial customers and senior gas distributors in NT and the wider Australian east coast market.
Central is positioned to become a significant domestic energy supplier, with exploration and development plans across 180,000 km2 of tenements in Queensland and the Northern Territory, including some of Australia's largest known onshore conventional gas prospects. Central has also completed an MoU with Australian Gas Infrastructure Group (AGIG) to progress the proposed Amadeus to Moomba Gas Pipeline to a Final Investment Decision.
We are also seeking to develop the Range gas project, a new gas field located among proven CSG fields in the Surat Basin, Queensland with 135 PJ (net to Central) of development-pending 2C contingent resource.
Investor and Media Inquiries: Greg Bourke: +61-478-318-702 Sarah Morgan: +61-421-664-969
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