Central Petroleum 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 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. 

The following new JV arrangements have been agreed with Santos: 

• The JV will proceed with Central retaining a 30% interest in EP112 which contains the Dukas-1 well (Santos 70%); 
• 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 
• 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%). 

“We are pleased to have reached agreement with Santos on a path forward to complete drilling at the exciting Dukas prospect, which remains the premier onshore multi-tcf conventional gas opportunity in Australia. Whilst the target drilling window isn’t as soon as we had hoped, we now have an agreed Dukas forward plan that gets the programme underway together with the possibility of Central being free carried for $3 million on this well,” said Central’s CEO and Managing Director, Leon Devaney.

KeyFacts Energy: Australia company/country profiles  Central Petroleum   l   Santos