Central Petroleum’s portfolio of assets received a boost during the June quarter with a 16 per cent upgrade in 2P reserves, driven by increases at the Mereenie and Palm Valley projects in the Northern Territory.
In its June quarterly update, Central Petroleum reported that the production capacity of the Mereenie field was 36 terajoules a day (TJ/d) at the end of the period.
Mereenie field production over the quarter remained constrained and lower than capacity, averaging 25.8 TJ/d compared to 26.4 TJ/d in March, due to challenging market conditions.
Central Petroleum added that planning activities continued for re-completions and new development wells to offset natural field decline at Mereenie.
In addition, the Palm Valley field produced a capacity of 11 TJ/d at the end of the quarter, averaging 10.6 TJ/d.
The company recorded a 2 per cent decline from the March quarter as a result of a compressor undergoing maintenance and natural field decline.
Following commissioning of the new PV13 well in May 2019, it reached a plateau rate of 7 TJ/d in May 2020, coming off the plateau during the June quarter.
Central Petroleum announced a 16 per cent increase in 2P reserves to 22.5 petajoules equivalent (PJE) in July, taking total 2P reserves to 161.2 PJE.
The increase was driven by strong field performance at Mereenie and the exceptional performance of the PV13 well since it was commissioned.
Central is seeking to implement a new approach to appraise production from the Stairway at Mereenie, subject to joint venture (Central, Macquarie Mereenie) approval.
The approach would use lateral drilling from existing wells at locations that had prior observed gas shows while drilling through the Stairway.
At Palm Valley, Central has identified three potential locations for lateral drilling to replicate the success of PV13.
“This gives me confidence that further reserves can be proved-up by targeting 105 PJ of 2C contingent gas resources at Palm Valley and Mereenie using cost-efficient appraisal techniques such as in-field laterals drilled from existing wells,” Central managing director and chief executive officer Leon Devaney said.