Oz Central Petroleum Sets 2020 Drilling Plan
Sydney-listed Central Petroleum plans to sink five exploration and up to two appraisal wells at prospects in the Northern Territory’s onshore Amadeus basin in its 2020 drilling campaign.
After completing a strategic portfolio review, Central has decided to drill exploration wells targeting its 100%-owned Dingo Deep, Orange-3, Palm Valley Deep, Palm Valley West and Mamlambo prospects, it said on October 11. The prospects hold 321 petajoules and 24mn barrels of best-estimate P50 resources.
A vertical well at Dingo Deep will target untested Pioneer reservoir intervals beneath the currently producing Arumbera level. Access to existing Dingo production facilities will allow for lower-cost brownfield economics. Another vertical well at Orange-3 will target Arumbera and Pioneer formations, some 30 km northwest of the Dingo gas field and adjacent to the Dingo pipeline.
At Palm Valley Deep, a well will target the deeper untested Arumbera formation in the Palm Valley field. If successful, the well will be able to use existing Palm Valley facilities. It also provides a lower-risk opportunity to accelerate production at the Pacoota formation through a horizontal side track. Palm Valley West will target the Pacoota formation some 15 km west.
The final exploration well at Mamlambo will target an oil prospect in the L6 permit about 8 km northeast of Central’s Surprise oilfield. Its primary aim will be the Pacoota sandstone, with Lower Stairway sandstone a secondary target.
Meanwhile, Central plans to perforate up to two wells at the Mereenie field under the Mereenie Stairway appraisal programme. They will assess high-fracture density in areas with prior Stairway gas shows that indicate low mineralisation risk.
Central is seeking a farm-in partner to take a minority stake in the exploration targets to help with funding next year’s campaign, slated to cost A$51mn ($34.5mn). It may also farm out some of its other assets, including Mereenie, Palm Valley, Dingo and Surprise, to raise capital.