Central Petroleum starts development of Dingo gas field

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.

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