• Central Petroleum’s (CTP) Palm Valley 12 well, in the Northern Territory, has reached an 1880-metre depth
• The well reportedly intersected the Palm Valley field’s fracture system which is believed to be encouraging for potential production rates
• PV12’s main target is the Arumbera Sandstone which Central Petroleum expects to reach at 3560 metres, the final planned depth of the well being 3980 metres
• PV12 is the first of a two-well drilling program being completed under joint ventures between Central Petroleum who owns a 50 per cent interest, and New Zealand Oil and Gas (NZO) and Cue Energy Resources (CUE) who own minor interests
• CTP shares are up 2.04 per cent to trade at 12.5 cents on market close

Central Petroleum (CTP) announced that on May 23, the Palm Valley 12 (PV12) well had reached a depth of 1880 metres.

The PV12 well is being drilled within the P1 unit of the Pacoota Formation which is the main productive zone in the Palm Valley field of the Northern Territory.

While drilling through P1, the well reportedly intersected Palm Valley’s fracture system which the company said is encouraging for potential production rates from a horizontal wellbore in the P1 unit. It also increases the chance of encountering production-enhancing fractures in the deeper target zones.

According to Central, the fractures also slow drilling progress due to losing drilling fluids into the fractures. This resulted in 193 metres of hole being drilled since the company’s last update on May 17.

The energy stock is focused on reducing the fluid losses before drilling ahead to the total depth of the 12 1/4-inch hole section of 2009 metres. Then, the 9 5/8-inch casing string will be run and cemented.

The main target is the Arumbera Sandstone, which CTP expects to reach at a depth of 3560 metres. The total depth of the PV12 well is 3980 metres and is expected to be achieved in June.

PV12 is the first of a two-well drilling program that also includes the Dingo-5 well.

The PV12 and Dingo-5 wells are being drilled under joint ventures between Central Petroleum who owns a 50 per cent interest, New Zealand Oil and Gas (NZO) who owns 35 per cent, and Cue Energy Resources (CUE) who owns the remaining 15 per cent interest.

CTP shares were up 2.04 per cent to trade at 12.5 cents on market close.