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KEY DRILLING CONTRACT ACCELERATES CENTRAL’S HYDROCARBON PUSH IN AUSTRALIA’S RED CENTRE**
The search for oil, helium, coal seam gas and other unconventional “new era” hydrocarbons in Central Australia received a significant boost late last week, with the signing of a five-well drilling contract by the region’s largest Operator in innovative energy exploration. Perth-based Central Petroleum Limited (ASX: “CTP”) signed the contract with WA-based drilling services company, Wallis Drilling Pty Limited, to drill five fully cored coal seam gas (CSG) wells over the next five months, in the highly prospective Pedirka Basin southeast of Alice Springs where the Company is exploring for an independently reported potentially recoverable prospective resource of 34 -70 trillion cubic feet (TCFG) of CSG as well as conventionally reservoired oil targets. The announcement follows the recent signing of a contract with leading seismic operator, Terrex Seismic Limited, for a 1,350 kilometre 2D seismic survey over the Pedirka and neighbouring Amadeus Basins – the largest single survey ever undertaken in these relatively underexplored but highly prospective regions in central Australia. “These two contracts represent another milestone for our exploration in Central Australia, paving the way for the next phase of an extensive drilling and seismic exploration programme to prove up the tremendous potential for hydrocarbons that all our previous surveys have been pointing to,” Central Petroleum’s Managing Director, Mr John Heugh, said today.
“If the results from these first five CSG are successful, subject to Joint Venture approval, they could be followed up quickly with further fully cored and or production test CSG wells in the Pedirka Basin.” The initial fully cored CSG wells will be drilled in adjacent Exploration Permits 107 and 93, the latter of which abuts the South Australian border. The first CSG well, in EP 93, is due to be spudded in the first week of December with access road repair and seismic line clearing crews being mobilised by mid November. Central’s imminent Phase One 2009 exploration programme– valued at A$32 million – will also include a comprehensive geochemical survey over the Johnstone, Surprise and Stuart oil prospects in the Amadeus Basin near the WA border in EP 115, a promising oil permit where the Company is targeting upside “high” estimates of over 500 MMbbls UOIIP in the first three prospects. “We are confident that the seismic acquisition, which will run over into 2010, will not only provide more detail and a possible expansion in size of up to five existing oil, gas and helium prospects slated for attention in 2010, but will open up a number of other new leads for follow up work,” Mr Heugh said. “Although the Company aims to potentially develop large scale GTL and helium extraction industries in the longer term based on gas of various compositions inclusive of CSG, it has also recently committed to a scoping study of various plant designs and sizes for relatively low volume helium extraction and monetisation, subject to discovery, which, along with the potential of significant oil discovery may hold promise for much earlier cash flow.” A conventional well, Ooraminna 2, targeting c. 2 TCF of gas UGIIP will also be drilled as part of the Phase One programme probably early in 2010, subject to the availability of an appropriate drilling rig and the readiness of other wells to be drilled in the Phase Two 2010 programme. Ooraminna 2 (2 TCFG UGIIP) and Johnstone 1 (over 500 MMbbls UOIIP) or an alternative will be drilled in 2010. Details of the proposed Phase Two 2010 exploration programme are being readied to be presented to Joint Venture participants in November 2009. Various elements of the Phase Two programme are subject to Joint Venture approval and various elements are part of the Northern Territory Regional Development, Primary Industries, Fisheries and Resources (RDPIFR) minimum requirements. With 270,000 km ² of tenements in a mix of applications and granted permits, Central Petroleum is the Operator of the largest prospective hydrocarbon acreage in Australia, with a portfolio that includes the majority of the Pedirka and Amadeus Basins, all of the known Lander Trough north of Alice Springs, and over 25,000 km ² of the Southern Georgina Basin in far west Queensland. The Company also has announced the successful granting of approximately 15,000 km ² of permits under the Mining Act of the Northern Territory largely co-incident with the Company’s existing Pedirka Basin permits and applications under the Petroleum Act of the Northern Territory.
The search for oil, helium, coal seam gas and other unconventional “new era” hydrocarbons in Central Australia received a significant boost late last week, with the signing of a five-well drilling contract by the region’s largest Operator in innovative energy exploration. Perth-based Central Petroleum Limited (ASX: “CTP”) signed the contract with WA-based drilling services company, Wallis Drilling Pty Limited, to drill five fully cored coal seam gas (CSG) wells over the next five months, in the highly prospective Pedirka Basin southeast of Alice Springs where the Company is exploring for an independently reported potentially recoverable prospective resource of 34 -70 trillion cubic feet (TCFG) of CSG as well as conventionally reservoired oil targets. The announcement follows the recent signing of a contract with leading seismic operator, Terrex Seismic Limited, for a 1,350 kilometre 2D seismic survey over the Pedirka and neighbouring Amadeus Basins – the largest single survey ever undertaken in these relatively underexplored but highly prospective regions in central Australia. “These two contracts represent another milestone for our exploration in Central Australia, paving the way for the next phase of an extensive drilling and seismic exploration programme to prove up the tremendous potential for hydrocarbons that all our previous surveys have been pointing to,” Central Petroleum’s Managing Director, Mr John Heugh, said today.
“If the results from these first five CSG are successful, subject to Joint Venture approval, they could be followed up quickly with further fully cored and or production test CSG wells in the Pedirka Basin.” The initial fully cored CSG wells will be drilled in adjacent Exploration Permits 107 and 93, the latter of which abuts the South Australian border. The first CSG well, in EP 93, is due to be spudded in the first week of December with access road repair and seismic line clearing crews being mobilised by mid November. Central’s imminent Phase One 2009 exploration programme– valued at A$32 million – will also include a comprehensive geochemical survey over the Johnstone, Surprise and Stuart oil prospects in the Amadeus Basin near the WA border in EP 115, a promising oil permit where the Company is targeting upside “high” estimates of over 500 MMbbls UOIIP in the first three prospects. “We are confident that the seismic acquisition, which will run over into 2010, will not only provide more detail and a possible expansion in size of up to five existing oil, gas and helium prospects slated for attention in 2010, but will open up a number of other new leads for follow up work,” Mr Heugh said. “Although the Company aims to potentially develop large scale GTL and helium extraction industries in the longer term based on gas of various compositions inclusive of CSG, it has also recently committed to a scoping study of various plant designs and sizes for relatively low volume helium extraction and monetisation, subject to discovery, which, along with the potential of significant oil discovery may hold promise for much earlier cash flow.” A conventional well, Ooraminna 2, targeting c. 2 TCF of gas UGIIP will also be drilled as part of the Phase One programme probably early in 2010, subject to the availability of an appropriate drilling rig and the readiness of other wells to be drilled in the Phase Two 2010 programme. Ooraminna 2 (2 TCFG UGIIP) and Johnstone 1 (over 500 MMbbls UOIIP) or an alternative will be drilled in 2010. Details of the proposed Phase Two 2010 exploration programme are being readied to be presented to Joint Venture participants in November 2009. Various elements of the Phase Two programme are subject to Joint Venture approval and various elements are part of the Northern Territory Regional Development, Primary Industries, Fisheries and Resources (RDPIFR) minimum requirements. With 270,000 km ² of tenements in a mix of applications and granted permits, Central Petroleum is the Operator of the largest prospective hydrocarbon acreage in Australia, with a portfolio that includes the majority of the Pedirka and Amadeus Basins, all of the known Lander Trough north of Alice Springs, and over 25,000 km ² of the Southern Georgina Basin in far west Queensland. The Company also has announced the successful granting of approximately 15,000 km ² of permits under the Mining Act of the Northern Territory largely co-incident with the Company’s existing Pedirka Basin permits and applications under the Petroleum Act of the Northern Territory.
