Central Petroleum Ltd., Brisbane, has started development of its Dingo gas field in Amadeus basin in Northern Territory 65 km south of Alice Springs.
The company has also been offered a conversion of the field retention licence into a 25-year production licence by the Northern Territory government.
The development comprises a field gathering system that will connect two production wells to a central processing plant and a 45-km pipeline to the Northern Territory government-owned Owens Spring electric power station.
Start of gas production is slated for first-quarter 2015.
Earlier this year Central acquired Dingo field, along with producing Palm Valley gas field to the west, from Magellan Petroleum Australia in a deal worth $35 million (Aus.) (OGJ Online, Feb. 19, 2014).
When added to the Palm valley gas flow, Central will supply 3.3 petajoules of gas a year under contract from 2015.
The two fields have a total of 53 bcf of gas in the 2P reserves category and Central says there are more leads and exploration opportunities within its Amadeus basin permits.