Magellan to Sell Gas from NT's Dingo Field

Magellan Petroleum Corporation signed a gas supply and purchase agreement with Northern Territory Power and Water Corporation (PWC) for the long-term sale of gas from the company's Dingo gas field in the Amadeus Basin in the Northern Territory, Australia. 

The company has contracted to supply up to 31 PJ (30 Bcf) of gas to PWC on a 100% take-or-pay basis over a 20‑year supply period.  Supply is expected to begin in early calendar year 2015.

Plan is to use the time before the commencement of gas supply to design, construct, and commission the surface facilities and tie-in pipeline necessary for the production and delivery of Dingo's gas, the company said.

Gas volumes are expected to be produced from three wells drilled at Dingo in the 1980s and 1990s, two of which have since been temporarily shut-in, and which are expected to be capable of producing gas volumes sufficient to meet the delivery requirements under the Dingo GSPA.