MEREENIE OIL AND GAS FIELD (OL4 AND OL5) – NORTHERN TERRITORY CTP - 25% interest (and Operator), Echelon Mereenie Pty Ltd - 42.5%, Horizon Australia Energy Pty Ltd - 25%, Cue Mereenie Pty Ltd - 7.5%

Average gross gas sales from the Mereenie field were 9% higher than the previous quarter, averaging 27.2 TJ/d (100% JV). Production rates (net of system use gas) reached as high as 32 TJ/d during the quarter, following the successful drilling and commissioning of two new production wells, WM29 and WM30, in January and February, adding approximately 9 TJ/d of production capacity.

The sales capacity of the Mereenie field was approximately 31.5 TJ/d (100% JV) at the end of the quarter. There were minor impacts on sales volumes during the quarter due to a wireline programme which required the temporary shut-in of wells.

Oil sales averaged 355 bbls/d (100% JV) during the quarter.

Successful Mereenie drilling program

Two new production wells were successfully drilled and commissioned at Mereenie during the quarter. Similar to our last drilling program at Mereenie, the wells were designed to maximise production rate potential by applying air drilling techniques in a highly deviated well bore at crestal locations.

The first well, WM29, was brought online on 20 January. The second well, WM30, which spud on 16 January was brought online on 26 February. Both of these commencement dates were ahead of schedule. Combined, the two new wells initially increased Mereenie sales gas capacity (total wellhead production capacity less system use gas) by circa 9 TJ/d, significantly exceeding pre-drill expectations.

The project was delivered safely to an accelerated schedule with a total delivered cost under the budgeted $8 million (CTP 25% share).

PALM VALLEY (OL3) – NORTHERN TERRITORY

CTP - 50% interest (and Operator), Echelon Palm Valley Pty Ltd - 35%, Cue Palm Valley Pty Ltd - 15%

Production from the Palm Valley field averaged 7.1 TJ/d over the quarter (Central share: 3.55 TJ/d), 6% lower than the previous quarter due to an interruption for planned maintenance and natural field decline. S

ales capacity was approximately 7.3 TJ/d (100% JV) at the end of the quarter.

The Palm Valley JV has been progressing permitting and approvals for two new Palm Valley appraisal wells to increase field production capacity, subject to market conditions and a joint venture final investment decision.

DINGO GAS FIELD (L7) – NORTHERN TERRITORY

CTP - 50% interest (and Operator), Echelon Dingo Pty Ltd - 35%, Cue Dingo Pty Ltd - 15%

The Dingo gas field supplies gas directly to the Owen Springs Power Station in Alice Springs. Sales volumes were 5% lower than the seasonal-high previous quarter, averaging 4.3 TJ/d (Central share: 2.13 TJ/d). Central is considering opportunities to expand the Dingo plant, however this will be entirely subject to market conditions and successful gas contracting, and a joint venture final investment decision. 

Source: Central Petroleum Announcements