Central Petroleum Ltd., Brisbane, has restarted its Range gas project in the Surat basin of southeast Queensland with its 50-50 joint venture partner Incitec Pivot Ltd.
Activities required to reach a final investment decision for the coal seam gas development include a 3-well appraisal pilot program with drilling scheduled to take place in first half 2021 as well as approvals and permits for the development program. FID is targeted for end 2021 with development expected to immediately follow leading to first commercial gas production in 2023 for supply to Australia’s east coast markets.
The Range project will develop and produce 270 petajoules of 2C resources. Subject to pilot test results, conversion into 2P reserves is expected before FID.
Gas exploration in 2019 exceeded expectations, but the operational and financial uncertainty caused by the COVID-19 pandemic and a severe downturn in global energy markets prompted a pause in pre-FEED activities in March 2020.
The outlook has stabilized, and Central Petroleum has strengthened its financial flexibility with an extension of its debt facility and the signing of a new gas sale agreement, the company said.
The Range Project covers 77 sq km and could see more than 140 producing wells over the life of the field, with gas processed on site and transported to market via a new pipeline connecting to the Roma-Brisbane trunkline or a tie-in to other nearby pipeline facilities.
