(MENAFN- ProactiveInvestors - Australia) Magellan Petroleum (ASX: MGN, NASDAQ:MPET) expects to increase production at its Palm Valley gas field in the Amadeus Basin, Northern Territory, to about 1.3 billion cubic feet of gas per year in the first quarter of 2014.
This will increase further to 1.5Bcf per year in the second quarter of 2015 when customers already under contract are scheduled to ramp up demand for gas.
Current net sales volumes average about 600,000 cubic feet of gas per day, representing about 15% of the field's current production capacity.
Magellan said it remains in active discussions with other potential customers who may be able to take gas deliveries prior to the schedule it advised.
It is also focused on developing and executing a plan to bring gas from the Dingo field to market in order to generate revenue from the asset.
The company is in discussions with potential customers regarding long-term gas supply and has commissioned a preliminary Front-End Engineering and Design Study from GPA Engineering to evaluate the cost and logistics of treating and tying-in Dingo gas to existing pipeline infrastructure near Alice Springs in Central Australia.
Magellan is planning to use the existing two wells at Dingo to supply gas from the field and would not be required to drill any new wells in the medium term.
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