Central Petroleum (ASX:CTP) reports that its Palm Valley 12 (PV12) well has been tied-in, with flow testing commenced on 28 November.
The company notes that following a period of ramp-up the well flowed at a stable, wellhead skid-limited rate of 10Tj, which exceeded pre-drill expectations.
It is also reported that the PV12 field capacity is expected to approach the maximum plant capacity of 15 TJ/d in mid-December following the completion of a scheduled compressor overhaul.
It is believed that this added PV12 production will allow for new firm and spot sales into what continues to be strong Northern Territory and east coast gas markets.
The PV12 well was drilled and connected under a joint venture (JV) between the company, ASX-listed New Zealand Oil & Gas and oil and gas production and exploration company Cue Energy Resources (ASX:CUE).
Central Petroleum currently owns the majority 50% interest of the PV12 well, while New Zealand Gas & Oil and Cue Energy Resources own the remaining 35% and 15% interest respectively.
“Great to see rates higher than originally hoped”
Speaking on the commencement of flowing gas sale, New Zealand Oil & Gas CEO, Andrew Jefferies says: “Great to see rates higher than originally hoped…hooked up and producing to sales, safely and on time ready to cook those christmas turkeys.
The existing Parcoota 1 production interval continues to deliver the goods, and the joint venture will mature plans to take advantage of this.”
Central Petroleum is the largest operator of onshore gas production in the Northern Territory, supplying oil and gas from its Mereenie, Palm Valley and Dingo fields to domestic customers within the state and the wider Australian east coast market. The company’s goal is to become a ‘significant’ domestic energy supplier and is currently working towards a final investment decision for the development of the Range Gas Project in the centre of Queensland’s proven coal seam gas precinct, the Surat Basin.
The company currently owns about 180,000km-square worth of tenements within Queensland and the Northern Territory, which are host to appraisal targets that are undergoing various exploration programs.
Central Petroleum reports that with Australia’s east coast gas market currently under-supplied, it is set to be a key player in satisfying this demand from its portfolio of assets.
