Central Petroleum Limited ((ASX:CTP) (FRA:C9J) (OTCMKTS:CPTLF) advises that it has completed a review of the Palm Valley field performance. Since restarting production, the existing Palm Valley wells have underperformed relative to pre-start expectations. Consequently, a comprehensive and independent reservoir modelling study was commissioned to update the life-of-field production forecasts. This has resulted in revised estimates for the field Reserves and Resources as shown in the table the link below.

The main driver for the adjustment is that the extended shut-in and recent production performance following the restart indicates that there is a lesser contribution from the low permeability portions of the reservoir. It is worth noting that the 2P reduction has been reclassified as 2C. These volumes are now contingent on economically viable projects to restart existing wells and install additional compression.

The adjustment to Palm Valley reserves results in an 8.4% reduction in Central's total 2P gas reserves as at 30 June 2018 to 154.5 PJs and will not impact on Central's ability to meet current firm sales obligations. With no further development, the Palm Valley field is expected to decline from around 12.5 TJ/d to around 5 to 7 TJ/d after two years, and then slowly decline thereafter. To offset this decline and better utilise Palm Valley's production facilities, Central intends to investigate options to convert 2C into 2P and review additional Palm Valley drilling opportunities to further increase total field reserves.

Strong current production from Mereenie along with potential future increases in Mereenie production (under the Gas Acceleration Plan (GAP) Phase 2) and Dingo production could also help to maintain Central's portfolio-wide production plateau over time.

To view tables, please visit:
http://abnnewswire.net/lnk/O9656U5A


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.

 

Contact

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



Link: Update on Palm Valley Field Performance & Reserves


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