Update on Palm Valley Field Performance & Reserves
Brisbane, June 12, 2019 AEST (ABN Newswire) - Central Petroleum Limited ((
ASX:CTP) (C9J:FRA) (CPTLF:OTCMKTS) 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 (
ASX:CTP) is an established ASX-listed Australian oil and gas producer (ASX:CTP) with exploration and appraisal permits in the Northern Territory (NT). Central has grown to become the largest onshore gas operator in the NT, supplying residential and industrial customers in the NT and wider Australian east coast market.
Central is seeking to become a major domestic energy supplier, in addition to helium and naturally occurring hydrogen, with exploration, appraisal and development plans across 169,112 km2 of tenements the NT, including some of Australia's largest known onshore conventional gas prospects in the Amadeus Basin.
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