RE: Central rns 16th July6 Oct 2020 09:04
16 July 2020
Dukas forward plan
Central Petroleum Limited (ASX: CTP) (“Central” or “Company”) is pleased to announce that it has reached agreement with its joint venture (JV) partner, Santos QNT Pty Ltd (Santos) on the forward plan for the prospective multi-tcf (trillion cubic feet) Dukas prospect in EP112 in the Northern Territory’s Amadeus Basin.
Key points
? Updated mapping incorporating results from Dukas-1 exploration indicates the structural closure appears to be in excess of 400km2, making it one of the largest-known onshore conventional gas prospects in Australia.
? Specialised equipment capable of drilling safely at depth in an over-pressured environment will be sourced, with drilling targeted to commence as soon as possible in 1H 2022.
? Work is now underway to select a preferred well program from a number of possible options including: a re-entry of Dukas-1; a complete redrill adjacent to Dukas-1; or drilling a new well at a revised crestal location. The JV is working toward a decision on the well program by year end.
? The following new JV arrangements have been agreed with Santos:
o The JV will proceed with Central retaining a 30% interest in EP112 which contains the
Dukas-1 well (Santos 70%);
o Prior to 31 July 2021 Santos can elect that Central be carried for the first $3 million of its well costs. In return for a carry by Santos and if Santos so elects, Central will transfer 30% equity in EP82 (excluding the Orange prospect) to equalise JV permit interests with Santos in the region; and
o Should Santos not carry Central in exchange for the option to have 30% equity in EP82, their interest in EP112 (with the Dukas-1 well) will decrease from 70% to 55% (Central interest increases from 30% to 45%).
? The 1H 2022 drilling target for Dukas creates an opportunity for Central to accelerate exploration in EP115 (100% Central), which contains other sub-salt leads that are potentially larger than the Dukas structure. By accelerating exploration in EP115, Central opens up the possibility of using the Dukas rig to also drill a sub-salt lead in EP115, thereby saving significant drilling costs.
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