Central Petroleum encounters further oil shows at Surprise 1 in the Armadeus Basin

Central Petroleum (ASX: CTP) continues to encounter oil shows at its Surprise-1 well in the Amadeus Basin as it hits a depth of 2,599 metres.

Fair to good oil shows accompanied by background gas with high “heavy” gas components of approximately 20 units, with peaks up to 40 units, have continued through any thin sands encountered in the Lower Stairway Sandstone and the Horn Valley Siltstone, which were reached at approximately 2,556 metres.

The gas, with the high proportion of C2, C3, iC4/nC4 and iC5/nC5, supports the existence of an oil dominated hydrocarbon accumulation.


Horizontal Drilling Plan

Last week Central announced horizontal drilling plans for Surprise-1. Previously, it had been planned to drill a sidetrack section in preparation for a possible vertical completion and production scenario.

The well has now drilled through the bottom cement plug at (top of approximately 2,300 metres) and it is planned to drill to an approximate depth of 2,750 metres in an 8.5 inch hole before running a full suite of electric logs and rotary sidewall cores.

Following evaluation of the section from the base of the Mereenie Sandstone to the mid Pacoota Sandstone, 7 inch casing is planned to be run to a depth of 2,750 metres before contingently drilling ahead in a 6 inch hole to a total depth of approximately 3,450 metres.

This is to evaluate possible direct hydrocarbon indicators in the lower Pacoota Sandstone, the Goyder Formation and the upper section of an interpreted salt dome.

Central re-entered Surprise-1 ST1 on Saturday 18 November for oil potential in both conventional and unconventional horizons.

The Surprise-1 re-entry is the first of this current liquids focused drilling program on Central’s acreage position including Madigan or Simpson East and Mt Kitty.

Central previously reported estimates, confirmed by independents consultant RPS Energy, that one 9 metre zone alone in the already drilled section of Surprise-1 has the ability to flow at between 500 to 1,000 barrels per day.

The company is aiming to complete the drilling of Surprise-1 by about mid-December 2011.


Strong Board, Well-Funded

Earlier this month, Central appointed Dalton Hallgren as chief operating officer. Hallgren has managed the drilling of numerous horizontal multi-stage fracced wells in such plays for companies such as Halliburton Project Management, Burlington Resources, Headington Oil, St Mary, Peak, Encana, Hess, Marathon and Conoco.

Meanwhile, Central closed the September quarter out with cash of $13.3 million.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22633/central-petroleum-encounters-further-oil-shows-at-surprise-1-in-the-armadeus-basin-22633.html