re: Ann: Encouraging Gas Flow Recorded at Mt ... ASX...

re: Ann: Encouraging Gas Flow Recorded at Mt ...
ASX ANNOUNCEMENT & MEDIA RELEASE ASX CODE: CTP
15 April 2014
ENCOURAGING GAS FLOW RECORDED AT MT KITTY EXPLORATION WELL
Central Petroleum Limited (
ASX:CTP
) (
Central
or
Company
) has been advised that its Mt Kitty
1 exploration well flowed gas in testing.
The preliminary findings were notified by Santos (
ASX:STO
), the Operator of Amadeus Basin
permit EP 125, that the exploration well Mt Kitty 1 reached its programmed total depth of
2,295m in metasedimentary basement.
Central Managing Director, Richard Cottee, said the prime objective of the Mt Kitty 1 well was
to confirm there is a hydrocarbon charge in the Southern Amadeus Basin which could be the
catalyst to interconnect the Northern Territory with the eastern seaboard gas market.
“We are encouraged by the well results recorded to date. Mt Kitty 1 and Central’s Magee 1 are
the only wells to have tested the sub salt play, and both have flowed gas on test”, Mr Cottee
said.
The well air-drilled into the objective Heavitree Formation at a depth of 2,140 metres below
rotary table. Upon penetration, elevated gas readings were observed, and a flow test at 2,144m
recovered gas at an initial rate of 500,000 cubic feet per day (cfd) through a 1-1/4” choke
declining to 70,000cfd after 10 minutes. A test at 2,156 mRT produced at rate of 530,000cfd
decreasing to 420,000cfd after 18 minutes accompanied by a gas flare and no water. Further
flow tests at 2,185m and 2,252m recorded comparable flow rates. A total thickness of 109
metres of Heavitree Formation was intersected. Gas samples have been collected and will be
analysed. Preliminary on site analyses indicate that the gas is high in Helium, up to 5.8%
(uncorrected for inert content). Helium is approximately 30 times more valuable than methane.
The nearby Magee gas discovery recorded around 6% Helium, 45% inert gases being primarily
Nitrogen, and 49% hydrocarbon.
Wireline logging operations had commenced to evaluate the quality of the Heavitree Formation
reservoir section before an incident on the rig caused operations to be suspended. Santos
notified Central that an incident occurred on the drill rig late in the day on Sunday 13 April at
approximately 5.20pm. No persons were inju
red and there has been no environmental impact
as a result of the incident.
Drilling operations have ceased and Santos is conducting an investigation. The well is secure
and being monitored and Santos is working with the rig owner, government authorities and
others to reinstate operations. Future operations will be advised by Santos in due course.
Mr Cottee said, “It is known that productive reservoirs in the Amadeus Basin have varying
degrees of natural fracture enhancement. These have been exploited successfully through the