The Palm Valley gas field has been in production since 1983 and provides gas for electricity generation in the Northern Territory, specifically Alice Springs and Darwin.
This latest well is designed to intersect reservoir effective-fractures in the primary objective of the gas bearing Ordovician lower Stairway Sandstone or in the secondary objective of the top Pacoota Sandstone P1 unit.
Palm Valley-11 is the first well in an eight well program for Magellan while the second step will see Magellan participate in two gas development wells at the Mereenie oil and gas field in the Amadeus Basin, to be drilled by Santos using the same rig as Palm Valley-11.
The program has been designed to increase gas deliverability from the basin, which contains a naturally fractured gas reservoir but has been suffering from a production decline.
Interests in PalmVallley-11 are Magellan 52.023% (operator) and Santos 47.977%.
