Central Petroleum revises drilling program

Central Petroleum Ltd., Brisbane, revised its current drilling program at Palm Valley and Dingo fields in the Amadeus basin of the Northern Territory.

The current Palm Valley-12 (PV12) well, originally targeting the Arumbera sandstone, is being changed to side track into the stratigraphically higher Pacoota 2 and Pacoota 3 sands.

The company said PV12, which has been drilling since April and now sits at 2.335 m, has experienced challenging rock conditions due to natural fractures in its crestal location.

Recent tests of the lower P2 to P4 interval have demonstrated minor gas flows to surface through vertical intersection which makes the P2/P3 sands an attractive target with reduced drilling risk relative to drilling a further 1,225 m to the deeper Arumbera sand, as well as lower potential development costs, the company said in a July release.

The revised plan calls for a side track drilled for up to 1,000 m into the P2/P3 unit aiming to maximize intersections with natural vertical fractures.

If the P2/P3 target is unsuccessful, a shallower gas appraisal lateral will be drilled in the currently producing P1 formation with the potential to become a production well.

Commercialization options in the event of a success at Dingo Deep would have required construction of new surface infrastructure and modifications to the Amadeus gas pipeline and Alice Springs pipeline to transport gas to the Australian east coast market. Deferral of the well will enable reallocation of capital to projects expected to deliver additional gas supplies to market within 12 months. Opportunities to increase near-term production include up to six recompletions and two new development-production wells at Mereenie or additional wells at Palm Valley.