Central Petroleum (ASX:CTP) is doing well PV12 – The Market Herald
- Central Petroleum’s (CTP) Palm Valley 12 well in the Northern Territory reached a depth of 1,880 meters
- The well would have intersected the Palm Valley field fracture system, which would be encouraging for potential production rates.
- The primary target for PV12 is the Arumbera Sandstone which Central Petroleum expects to hit at 3560 meters, with the planned final depth of the well being 3980 meters
- PV12 is the first of a two-well drilling program carried out through joint ventures between Central Petroleum, which owns a 50% interest, and New Zealand Oil and Gas (NZO) and Cue Energy Resources (CUE), which own minor interests.
- CTP shares are up 2.04% to trade at 12.5 cents at market close
Central Petroleum (CTP) announced that on May 23, the Palm Valley 12 (PV12) well reached a depth of 1880 meters.
The PV12 well is being drilled in unit P1 of the Pacoota formation which is the main producing area of the Palm Valley field in the Northern Territory.
When drilling through P1, the well would have intersected the Palm Valley Fracture System, which the company says is encouraging for potential production rates from a horizontal wellbore in the P1 unit. It also increases the risk of encountering production-enhancing fractures in deeper target areas.
According to Central, fractures also slow down drilling progress due to the loss of drilling fluids in the fractures. This resulted in the drilling of 193 meters of hole since the company’s last update on May 17.
The energy store is focused on reducing fluid losses before drilling to the full depth of the 12 1/4 inch hole section of 2009 yards. Next, the 9 5/8 inch casing string will be poured and cemented.
The main target is the Arumbera sandstone, which CTP expects to strike at a depth of 3,560 meters. The total depth of the PV12 well is 3980 meters and should be reached in June.
PV12 is the first of a two-well drilling program that also includes the Dingo-5 well.
The PV12 and Dingo-5 wells are being drilled under joint ventures between Central Petroleum which holds a 50% interest, New Zealand Oil and Gas (NZO) which holds 35% and Cue Energy Resources (CUE) which holds the other 15 for cent of interest.
CTP shares rose 2.04% to trade at 12.5 cents at market close.