Central Petroleum Flows Gas from Northern Territory Field

Central Petroleum’s 30-day production testing of the Stairway Sandstone at Mereenie field in Northern Territory has resulted in a gas flow.

The company on Monday said the gas flow was at an average of 1.5 million cubic feet per day (approximately 1.5 TJ/d) from WM15 well.  According to Central. these results are encouraging as the well was not designed initially to optimise production from the Stairway Sandstone, and so higher rates may have been achieved if the well had been designed specifically for production from the Stairway. 

Central said production of low nitrogen gas allows the company to optimise oil production resulting in a 7.5 percent lift in oil production last month at no extra cost. If continued this would create an additional annual gross production of 17,000 bbls (Central's share 8,500 bbls), the company stated.  

“Its quality is such that the Stairway gas, if able to be developed, should be able to lower the processing costs of the whole of the gas production and, as a result, WM15 will remain on production," said Richard Cottee, Managing Director of Central Petroleum Limited. "The potential for including the Stairway as incremental reserves is tantalizingly close.” 

In September 2015, Central assumed operatorship of the Mereenie oil and gas field after acquiring a 50 percent interest from Santos in June 2015.