(MENAFN - ProactiveInvestors - Australia) Central Petroleum (ASX: CTO) has completed technical analysis and investigations that indicate the presence have multiple high reward potential zones within its Surprise oil discovery in the Amadeus Basin, Northern Territory.
Data used for this study included extended production testing of Surprise-1, 3D seismic, reservoir modelling and pressure transient analysis.
Central now believes the lowest known oil is deeper than originally expected with the oil column thicker than previously thought.
This serves to improve the estimated development timeframe and economics of the proposed development.
It added there may be a structural and/or stratigraphic component to the trap along the ridge to the east of the structure, where the Stairway reservoir is seismically interpreted to pinch out into salt.
The expanded oil column allows for another well location on the east side of the fault. Further analysis is underway to determine what additional work is required to confirm this proposition. Such work may be carried out after Surprise comes into production.
Regional work has also identified the Horn Valley Siltstone (HVS), located stratigraphically below the Surprise reservoir and extending for thousands of square kilometres, as the regional oil source for the known oil discoveries in the North-Western Amadeus Basin.
3D seismic data indicates the HVS thickens coming off the Surprise structure. Our interpretation is that basinal areas straddling the Surprise structure may be rich, highly prospective areas for a HVS shale oil/gas play.
Central will allocate more resources to define this potentially large unconventional play over time.
It may also test the lower formations draped over salt when the Surprise development commences.
Since the Surprise-1 oil discovery started flowing oil on 20 June 2012, Central has been carrying out extended production testing to gain a better understanding of the find.
Flow rates have stabilised between 200 barrels and 400 barrels per day without pump and the company expects final production rates to be higher through the use of pumping.
Encouragingly, water produced during the production test remained below 10% and by the end of the test, had fallen to 3.2%.
Early interpretation of 3D seismic has also suggested that the structure could support more wells.