Central Petroleum approves two Mereenie wells
Central Petroleum and its Mereenie JV partners have formally approved the drilling of two development wells at the Mereenie Oil and Gas Field in the Northern Territory. Central’s 25% share of costs for this program is expected to total approximately $8 million and can be funded from existing cash reserves.
Central, as Operator, has contracted with Ventia Australia Pty Ltd to have Rig 101 drill the two new Mereenie wells, West Mereenie 29 and 30. Drilling is anticipated to commence around the end of this year, with commencement of gas production expected in the first half of 2025.
The wells are estimated to take 30 days each, and target the crest of the Pacoota 3 (P3) reservoir (at depths of around 1,500 m) to optimize productivity and gas recovery from the field.
The Mereenie development wells are expected to return field production capacity back above 30 TJ/d (100% JV) from the current 27 TJ/d (100% JV) and produce at least 25 PJ of gas (100% JV) over their lifetime.
This investment decision follows the recently announced Gas Sales Agreements with the Northern Territory Government (NTG GSA). Firm gas from the new wells is to be sold into the recently executed NTG GSA which can be expanded by up to 6 TJ/d following successful completion of the wells.
