Palm Valley 12 Drilling Update
Operations over the last week included placing cement plugs in the build section and installing and cementing the 7" liner in place. The tie-back assembly including the downhole deployment valve was installed to enable the air drilling of the lateral sidetrack. The rig is expected to commence air-drilling the lateral in the P2/P3 formations within the next 24 hours. Depending on the rate of penetration, the P2/P3 lateral is anticipated to be completed within the next 3 weeks.
The objective of the sidetrack is to test the vertically fractured lower P2 sandstone, encountered in the original well, from a horizontal well bore for approximately 450mMD before entering the P3 sandstone and drilling approximately 450mMD at a near horizontal angle.
The PV12 ST1 well is being drilled under a joint venture between Central (50% interest), New Zealand Oil & Gas Limited (ASX:NZO) (35% interest) and Cue Energy Resources Limited (ASX:CUE) (15% interest) and is scheduled to be completed this month.
About Central Petroleum Limited
Central 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.
New Zealand Oil & Gas Limited
Cue Energy Resources Limited
Central Petroleum Limited