Central, Santos Encouraged by Oz Well Result

Australia’s Central Petroleum has reported encouraging initial results at its Dukas-1 exploration well in the Northern Territory.

The borehole has reached a 3,704-metre depth in the Gillen formation, encountering formation pressures “significantly higher” than recorded at previous wells targeting the pre-salt play, Central said in an ASX stock exchange filing on August 6.

The pressure is connected with “an inflow of gas of yet to be determined composition,” it said.

Central and its fellow Australian project partner Santos are considering steps forward, which may include suspending the well and resuming drilling at a later point.

“Whilst the delay is disappointing, the presence of such overpressure in association with gas adds to the evidence from Mt Kity and Magee that there appears to be a working petroleum system at this location,” Central said.

Dukas-1 is situated in licence EP112 in the Amadeus basin. Central retains a 30% stake in the licence following a farm-out deal with Santos last year that secured the latter a 70% interest in return for funding drilling work.

The pair has suffered several recent delays at Dukas-1, owing to rig repairs and difficulties while running the well’s intermediate casing liner. The borehole is yet to tap into the Heavitree formation, located several hundred metres below its current depth, Central said.