Central Petroleum (ASX: CTP) has updated the market on the company's drilling status.
Central said that the drilling of an appraisal well over the Surprise structure has been deferred pending the outcome of the planned Extended Production Test of the Surprise-1 RE H well, and acquisition of 3D seismic over the Surprise
Accordingly the company will not be exercising the option to retain Hunt Rig #3.
Well funded to appraise Surprise-1 oil discovery
Central remains well funded after raising A$9.9 million earlier in the month to appraise the potentially company-making Surprise-1 oil discovery in the Amadeus Basin, Northern Territory.
The Surprise-1 horizontal well flowed light sweet crude at a maximum sustained rate of 380 barrels per day with low water cut, marking the first major onshore oil flow in the Northern Territory in nearly 50 years.
Its success serves to validate Central’s long-standing belief in the petroleum prospectivity of central Australia, expanding the commercial oil potential of its Western Amadeus Basin acreage.
Further appraisal of the discovery would allow Central to delineate its extant and determine its productivity and resources present.
An engineering report by RPS Energy had indicated Surprise-1 could access initial in-place oil of 0.5 and 2 million barrels.
A successful development will also give the company a source of cashflow to target further prospects in its portfolio.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/25491/central-petroleum-updates-the-market-on-surprise-well-drilling-25491.html