Join our daily newsletter At The Bell to receive exclusive market insights
- Central Petroleum (CTP) has contracted Silver City Drilling to complete three appraisal pilot wells at its Range Gas Project in Queensland
- The wells will produce water to the surface and gas to a local flare in order to provide key subsurface and production data
- All three wells will be drilled through the three recognised Walloon coals sections, with the first expected to spud in early April this year
- If successful, these wells will be the catalyst for a bankable full-field development plan to support a Final Investment Decision (FID)
- Central Petroleum is down 3.33 per cent to $0.14 per share
Central Petroleum (CTP) has contracted Silver City Drilling to complete three appraisal pilot wells at its Range Gas Project in Queensland.
Located in the Surat Basin, the project is held under a 50-50 joint venture between wholly-owned subsidiaries of Central Petroleum and fellow ASX-lister Incitec Pivot.
The proposed wells follow a separate four-well exploration program that was completed in 2019, which successfully identified a high-quality gas resource within the proven Walloons coal seam gas region.
All three pilot wells will be drilled through the three recognised Walloon coals sections — Upper Juandah, Lower Juandah and Taroom — and are designed to produce water to the surface and gas to a local flare, thereby providing key subsurface and production data.
The first well is expected to spud in early April this year, with the others to be completed at 200-metre intervals in an effort to accelerate the provision of data.
If successful, the wells are anticipated to produce for between three and six months, and will act as the catalyst for a bankable full-field development plan, which will support a Final Investment Decision (FID).
“If successful, Central’s 50 per cent share of the project will result in a step-change in our reserves base and production rates,” said Leon Devaney, Managing Director of Central Petroleum.
“After the challenges of 2020, I am pleased to hit the ground running in 2021 and begin a year in which we are seeking to drill a number of new wells across our portfolio, beginning with Range,” he added.
In addition to the pilot well activities, Central Petroleum noted that the Range Gas Project joint venture remains committed to progressing State and Federal approvals in order to further accelerate the planned FID and full-field development.
Central Petroleum is down 3.33 per cent to 14 cents per share at 4:44 pm AEDT.
