Central Petroleum has contracted with Silver City Drilling (NSW) 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 between wholly-owned subsidiaries of Central and Incitec Pivot.
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 thecatalyst for the Range JV to finalisea 'bankable' full-field development plan insupport ofa 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 monthsto 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 toexisting 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.'
