The company, which has long touted the potential for a gas-to-liquids plant in its NT acreage, has contracted the Hunter Rig 2 to kick off the program with the Blamore well in EP 93, which targets up to 70 million barrels of in-place oil reserves.
This will be followed by the Simpson well in EP 97 that targets 190 million barrels of oil along with the Mount Kitty and Ooraminna gas wells that target a total of up to 5 trillion cubic feet of gas.
Central managing director John Heugh hopes the two oil wells could provide an early source of cash for the company, telling PetroleumNews.net that any oil found could be trucked either to Alice Springs for rail shipment or direct to Darwin.
"If we get bigger quantities of oil, we would probably pipe it across to the rail link and very definitely go for the bulk rail liquid transportation up to Darwin," he said.
Central is also drilling three coal seam methane wells as part of this drilling program.
These represent the initial phase of proving up 34-70Tcf of gas in CSM recoverable prospective resources assessed independently last year in the Pedirka Basin.
"The GTL story is a slow train coming, we have to prove up the reserves first, but we are very confident of that, then we have to do a full blown feasibility study and then a front-end engineering design, and then EPC on that would take up to five years," Heugh said.
"So it's a longer-term story, but it's a very big story. For example, the low side recoverable prospective figures on the coal bed methane side of the equation would be enough to fuel a 140,000 barrels per day GTL plant for about 70 years."
Central is also close to completing a 1150km 2D seismic survey over 17 gas and 8 oil prospects/leads, and expects to complete a 30,000 square kilometre aerogravity survey in May.
Unlisted Sydney-based Petroleum Exploration Australia (PXA) is helping to fund 40% of pre-drilling seismic acquisition up to a limit of $3 million per permit and 40% of the cost of drilling up to three exploration wells for a 20% stake in each prospect drilled and their corresponding permits.
