Santos Ends Drilling Work at Mt Kitty-1 in Amadeus Basin After Rig Incident

Central Petroleum Limited (Central or Company) announced Tuesday that the firm has been advised that its Mt Kitty 1 exploration well in the Amadeus Basin, Northern Territory, Australia flowed gas in testing.

The preliminary findings were notified by Santos, the Operator of Amadeus Basin permit EP 125, that the exploration well Mt Kitty 1 reached its programmed total depth of 7,529 feet (2,295 meters) in metasedimentary basement.

Central Managing Director, Richard Cottee, said the prime objective of the Mt Kitty 1 well was to confirm there is a hydrocarbon charge in the Southern Amadeus Basin which could be the catalyst to interconnect the Northern Territory with the eastern seaboard gas market.

“We are encouraged by the well results recorded to date. Mt Kitty 1 and Central’s Magee 1 are the only wells to have tested the sub salt play, and both have flowed gas on test”, Cottee said.

The well air-drilled into the objective Heavitree Formation at a depth of 7,020 feet (2,140 meters) below rotary table (RT). Upon penetration, elevated gas readings were observed, and a flow test at 7,034 feet (2,144 meters) recovered gas at an initial rate of 500,000 cubic feet per day through a 1.25 inch choke declining to 70,000 cubic feet per day after 10 minutes. A test at 7,073 feet (2,156 meters) RT produced at rate of 530,000 cubic feet per day decreasing to 420,000 cubic feet per day after 18 minutes accompanied by a gas flare and no water. Further flow tests at 7,168 feet (2,185 meters) and 7,388 feet (2,252 meters) recorded comparable flow rates. A total thickness of 357 feet (109
meters) of Heavitree Formation was intersected. Gas samples have been collected and will be analyzed. Preliminary on site analyses indicate that the gas is high in Helium, up to 5.8 percent (uncorrected for inert content). Helium is approximately 30 times more valuable than methane. The nearby Magee gas discovery recorded around 6 percent  Helium, 45 percent inert gases being primarily Nitrogen, and 49 percent hydrocarbon.

Wireline logging operations had commenced to evaluate the quality of the Heavitree Formation reservoir section before an incident on the rig caused operations to be suspended. Santos notified Central that an incident occurred on the drill rig late in the day on Sunday April 13 at approximately 5.20pm. No persons were injured and there has been no environmental impact as a result of the incident.

Drilling operations have ceased and Santos is conducting an investigation. The well is secure and being monitored and Santos is working with the rig owner, government authorities and others to reinstate operations. Future operations will be advised by Santos in due course.


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