Central Petroleum doubles reserves as it gears up to sell NT gas to Qld
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Territorian oil and gas producer Central Petroleum has more than doubled its oil reserves and dramatically lifted its total reserves.
The company (ASX:CTP) hired a consultant to estimate what it had in three neighbouring fields.
Total 2P oil and gas reserves increased 37 per cent to 169 petajoules (PJ) while 2P oil reserves are up 154 per cent to 970,000 barrels.
Oil and gas reserves are measured as 1P, 2P and 3P. 1P reserves are proven while 2P reserves and proven and probable.
Central Petroleum said access to East Coast gas markets via the new Northern Gas Pipeline was a factor in the upwards revision, as well as new production data from the Mereenie and Dingo fields, and extra reserves at nearby Palm Valley.
The company plans to almost triple gas production in December from 14.9 terajoules a day (TJ/d) to 41.1 TJ/d as it gears up to sell into the East Coast.
The new 90 TJ/d pipeline will start by December and link Tennant Creek in the Northern Territory to Mt Isa and the Queensland pipeline network.
Central Petroleum is one of the first customers. The pipeline will initially carry gas from Eni’s Blacktip gas field in the Timor Sea and from Central’s Palm Valley and Mereenie fields to the East Coast.
Central Petroleum has already signed a deal to supply Incitec Pivot’s (ASX:IPL) fertiliser plant near Brisbane with gas feedstock.
Shares were flat at 13.5c on Tuesday.