ASX-listed oil and gas producer, Central Petroleum Limited, has announced a 16 per cent upgrade of Proved and Probable (2P) oil and gas reserves across its three producing fields in the Northern Territory.
Central Petroleum is the largest onshore gas producer in the Northern Territory, supplying oil and gas from its Mereenie, Palm Valley and Dingo fields to domestic customers in the NT and the wider Australian east coast market.
The upgrade means that after accounting for FY2020 production, there is an increase of 22.5 petajoules equivalent (PJE) in aggregate 2P oil and gas reserves to 161.2 PJE as at 30 June 2020.
According to Central Petroleum, the reserve upgrade was driven by strong field performance across the portfolio and the ‘exceptional performance’ of the PV13 well at Palm Valley since it was commissioned in May 2019.
The additional reserves provide a significant revenue opportunity for Central with east coast gas markets anticipated to strengthen in the medium term.
Moreover, the company notes confirmation of a 105 PJ of 2C contingent gas resources which could potentially be unlocked by a proposed Stairway appraisal program at Mereenie and additional infield wells at Palm Valley (similar to PV13).
Central’s CEO and Managing Director, Leon Devaney, said: “This reserve upgrade demonstrates the strength of our operating assets, which continue to provide a critical foundation for Central during the current market downturn.”
“Importantly, we see resilient prices for term gas supply from 2022, with the recent drop in sector investment likely to accelerate these supply/demand dynamics. Consistent with this view, we are targeting our significant 2C resources through new and smarter approaches to Stairway appraisal and in-field laterals at Palm Valley.”
“Combined with our exploration program, our Range Gas Project and active farmout process, Central is continuing to build momentum towards achieving our vision to become a major gas supplier into the domestic market,” Mr Devaney commented.
The full announcement can be found here.