Range Gas Project Update - Drilling Rig Contracted
Range Gas Project Update - Drilling Rig Contracted
Brisbane, Jan 25, 2021 AEST (ABN Newswire) - Central Petroleum Limited (ASX:CTP) (FRA:C9J) (OTCMKTS:CNPTF) has contracted with Silver City Drilling (NSW) Pty Ltd to have Rig 34 drill three appraisal pilot wells at Central's Range Gas Project in Queensland's Surat Basin. The first well is expected to spud in early April 2021. The Range Gas Project is being progressed under a 50:50 joint venture ("Range JV") between wholly-owned subsidiaries of Central and Incitec Pivot Limited (ASX:IPL).

These wells represent the next appraisal stage after the 2019 four-well exploration programme successfully identified a high-quality 2C contingent gas resource of 270 PJ (100% JV) in the proven Walloons CSG play. The three pilot wells are designed to produce water to surface and gas to a local flare in order to provide key subsurface and production data. If successful, this pilot well program will be the catalyst for the Range JV to finalise a "bankable" full-field development plan in support of a Final Investment Decision ("FID").

All three pilot wells will be drilled through the three recognised Walloon coals sections (Upper Juandah, Lower Juandah and Taroom coals), with all three coals expected to contribute to production. The wells will be drilled closely spaced (at 200m spacing) to accelerate the provision of key subsurface and production data. Once online, the wells are expected to produce for around three to six months to provide the required data.

In parallel with the pilot activities, the Range JV is progressing key State and Federal approvals in order to accelerate the planned FID and full field development.

The Range Gas Project is situated within the greater, world-class Walloons fairway, close to existing producing CSG fields. Accordingly, the Range Gas Project has access to nearby infrastructure and transmission pipelines. Importantly, development of the Range Gas Project will provide a vital new source of competitively priced gas for the east coast gas market. Present estimates are that the Range Gas Project could produce in the vicinity of 45 TJ/d (gross JV).

Commenting on the Range Gas Project, Central's Managing Director Leon Devaney said, "The Range Gas Project is on path to be one of Central's most significant growth projects and a real boost for the Company. If successful, Central's 50% share of the project will result in a step-change in our reserves base and production rates. After the challenges of 2020, I am pleased to hit the ground running in 2021 and begin a year in which we are seeking to drill a number of new wells across our portfolio, beginning with Range."

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About Central Petroleum Limited

Central Petroleum LimitedCentral Petroleum Limited (ASX:CTP) is a well-established, and emerging ASX-listed Australian oil and gas producer. 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.



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