Central Petroleum Limited (ASX:CTP) (FRA:C9J) (OTCMKTS:CNPTF) advises that the Palm Valley 12 (PV12) well in OL3, Southwest of Alice Springs in the Northern Territory, spud on Sunday, 17 April 2022.

The PV12 well is the first of a 2-well drilling program that also includes the Dingo-5 exploration / production well. Central has a 50% interest in both PV12 and Dingo-5, which are free-carried for Central by New Zealand Oil & Gas (ASX:NZO) (35% interest) and Cue Energy Resources (ASX:CUE) (15% interest) and are scheduled to be completed this year. The PV12 well has two alternative objectives, consisting of a deeper gas exploration target or a shallower gas appraisal lateral that could become a production well.

PV12 exploration target

The PV12 exploration target is the Arumbera Sandstone at an anticipated vertical depth of 3,560m. The well will be drilled to a total vertical depth of 3,980m making it the deepest to be executed in the Amadeus Basin. The target interval is also the gas-producing zone at Central's Dingo gas field, located about 120km to the east.

The well will be deviated at up to a 45deg angle in the target zone to increase the exposure to potential formation fractures.

PV12 exploration success could open a significant new phase of growth within the existing Palm Valley gas field by targeting 123 PJ of mean prospective resource (Central 50% interest: 61.5 PJ). This is more than four times Palm Valley's existing 2P reserves and would increase Central's total existing 2P reserves base1 of 75.4 PJe in the Amadeus Basin by 81%.

The PV12 well is currently estimated to reach the exploration target in early June.

PV12 appraisal target (alternate objective)

If the PV12 deep exploration objective is unsuccessful, the well will be plugged back and side-tracked to test the shallower Pacoota Sandstone (approx. 1,770m depth), with the potential to become a production well.

The PV12 appraisal well is designed as a deviated well extending up to 1,000m within the Pacoota Sandstone, which is the current producing zone for the existing Palm Valley gas field.

The lateral design is similar to the successful PV13 appraisal well drilled in 2019, which had a lateral extension of only 300m and has already produced approximately 5.7 PJs in its first 3 years of production (gross JV).

Comments from the CEO

"We have worked hard over the past year to lay the groundwork for the current two-well exploration program and three sub-salt exploration wells next year, giving us a total of 5 exploration wells over the next 18 months. Today's announcement marks our transition into a phase of sustained and material exploration news flow for Central. We are also actively pursuing opportunities to expand this drilling program to include an oil exploration well at Mamlambo and gas appraisal wells in the Mereenie Stairway. As a small-cap, delivering each of these exploration wells provides Central with a distinct opportunity for upward momentum.

Combined with strong underlying market fundamentals, our pivot into the delivery phase of exploration drilling makes this is an exciting time for our shareholders." said Central's Managing Director & CEO, Leon Devaney.

*To view tables and figures, please visit:

About Central Petroleum Limited

Central Petroleum Limited (Central) is a well-established, and emerging ASX-listed Australian oil and gas producer (ASX:CTP). In our short history, Central has grown to become the largest onshore gas producer in the Northern Territory (NT), supplying industrial customers and senior gas distributors in NT and the wider Australian east coast market.

Central is positioned to become a significant domestic energy supplier, with exploration and development plans across 180,000 km2 of tenements in Queensland and the Northern Territory, including some of Australia's largest known onshore conventional gas prospects. Central has also completed an MoU with Australian Gas Infrastructure Group (AGIG) to progress the proposed Amadeus to Moomba Gas Pipeline to a Final Investment Decision.

We are also seeking to develop the Range gas project, a new gas field located among proven CSG fields in the Surat Basin, Queensland with 135 PJ (net to Central) of development-pending 2C contingent resource.



Investor and Media Inquiries:
Greg Bourke: +61-478-318-702
Sarah Morgan: +61-421-664-969

Link: Amadeus Basin Exploration Program Commences

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New Zealand Oil & Gas Limited

Cue Energy Resources Limited

Central Petroleum Limited

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