Central Petroleum managing director John Heugh said yesterday the formal granting of the permit opened the door to several large oil, gas, condensate and helium plays available for investigation in this large block.
“This represents the first permit to be awarded in the western Amadeus since the mid 1980s oil price shock and the October 1987 stockmarket crash was reflected in a virtual shut-down of petroleum exploration onshore in the Northern Territory,” Heugh said.
“Environmental inspections and sacred site surveys of the areas chosen for initial exploration activity have already been completed at field level and the formal results of these investigations are expected shortly.”
Central said the permit contains the Johnstone oil prospect assessed as having potential to host up to 112 million barrels of recoverable oil in a three-way dip and one-way fault terminated closure in the main Ordovician Stairway and Pacoota Sandstone target horizons at depths less than 1800m.
Secondary targets include the older Neo-Proterozoic Pioneer Sandstone (Aralka Petroleum System) and the Heavitree Sandstone.
“Central has planned a 200 line kilometre seismic acquisition program to provide additional pre-drilling information over the Johnstone, Surprise and Stuart oil prospects in EP 115,” the company said.
“In addition, the very large Wells prospect, not previously described will be targeted in this next seismic campaign.
“The Wells prospect may have closure in excess of 300 square kilometers and has potential for oil, gas and condensate in both of the Aralka and Heavitree petroleum systems.”
The Heavitree has regional and widespread potential for helium in addition to hydrocarbons, Central said.
“It had been ignored by previous explorationists focused solely on the Ordovician [Mereenie and Palm Valley style] petroleum system,” the company said.
“Central has contingent plans to kick off its first drilling campaign in the last quarter of 2007 with Mt Kitty, Ooraminna and either or both of Simpson and Blamore.”
This drilling will be followed by a 1000km-plus 2D seismic acquisition program, the company said.
Johnstone is likely to be drilled in mid to late 2008 following these activities, subject to various contingencies.
