- Central Petroleum (CTP) and its joint venture partner has restarted the development of its Range Gas Project in Queensland’s Surat Basin
- The project was paused in March due to COVID-19 and the severe downturn in global energy markets
- However, in recent months, the energy market has stabilised and forecasts have indicated that there will be a strong demand for new domestic term gas supplies
- Due to this, the pre-final investment decision (FID) will recommence, which includes a three-well appraisal pilot program
- Development is expected to commence immediately after the FID, allowing for the first gas production in 2023
- At market close, Central is up 4.35 per cent and is trading for 12 cents per share
Central Petroleum (CTP) has restarted the development of its Range Gas Project in Queensland’s Surat Basin.
The Range Gas Project is being progressed under a joint venture agreement with a subsidiary of Incitec Pivot (IPL).
The companies completed a successful gas exploration program in 2019, which exceeded expectations, however, due to operational and financial uncertainty around COVID-19, as well as the severe downturn in the global energy markets, the Range Gas Project was paused.
In recent months, the energy market has stabilised and forecasts have indicated that there will be a continuing strong demand for new domestic term gas supplies.
Due to this, the pre-final investment decision (FID) will recommence and includes a three-well appraisal pilot program, which is planned for the first half of 2021, and obtaining approvals and permits for the project.
Development is expected to commence immediately after the FID, allowing for the first gas production in 2023.
The Range Gas Project covers an area of 77 kilometres squared and could include up to 143 producing wells over the life of the field.
Central CEO and Managing Director, Leon Devaney, is pleased to restart Range.
“The new gas sale agreement and restructured finance facility announced last week, combined with continued resilience in term gas markets, give us the flexibility and confidence to restart Range,” he said.
“This is a major area of growth for Central which we believe will be a very competitive new source of gas for the east coast market when the project comes onstream in 2023,” he added.
At market close, Central is up 4.35 per cent and is trading for 12 cents per share.