(MENAFN- ProactiveInvestors - Australia) Central Petroleum (ASX: CTP) will now pursue development of its Surprise oil discovery in the Northern Territory after receiving a Proved Reserve estimate of 600,000 barrels of oil from its consultants.
Consultants Strategy Central also estimated Proved and Probable Reserves at 1.1 million barrels of oil and Proved, Probable and Possible Reserves at 2.1MMbbl.
The Reserves are based solely on the west side of the main fault interpreted at Sunrise while Contingent Resources of 5.85MMbbls are quantified to the east of the fault, offering the potential for additional Reserves.
Central plans to implement the recommendation that further drilling be carried out on both the east and west side of the Surprise fault.
Development costs are expected to be reduced as the infrastructure required for the extended production test is already in place.
Central will also consider debt financing and a partial farm-out as options for developing EP 115.
Surprise-1 had flowed between 200 barrels and 400 barrels of oil per day without pump during extended production testing. Higher production is expected with pumping.
Central had $2.1 million in cash as of 31 December 2012 and received $1.125 million from the Century arbitration matter in January 2013. Total and Santos (ASX: STO) will also contribute around $4.5 million cash once their respective farm-in deals become unconditional this quarter.Â
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