Central Petroleum Ltd. disclosed Monday that its production testing of the Stairway Sandstone at the Mereenie Oil and Gas Field in Amadeus Basin in Australia’s Northern Territory has confirmed gas flow.
The 30-day production testing of the previously drilled West Mereenie-15 (WM15) well ended June 22 yielded around 1.5 million cubic feet per day of gas, with low nitrogen content of 2.6 percent, far below Australia’s East Coast gas specification, recorded.
Central added that the production of low nitrogen gas allows the company to produce 7.5 percent more oil in May at no extra costs. If continued, there would be an additional annual gross production of 17,000 barrels.
“Given that the Stairway Sandstone is above the presently producing Pacoota Formation, any development of the Stairway will be able to access the existing field gathering systems. Its quality is such that the Stairway gas, if able to developed, should be able to lower the producing costs of the whole of the gas production and, as a result, WM15 will remain on production … The potential for including Stairway as incremental reserves is tantalizing close,” Central’s Managing Director Richard Cottee said in the press release.
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