As part of arrangements in the purchase of Central’s interest in Mereenie Oil and Gas Field, Central has acquired 100% interest and Operatorship of 20 graticular blocks excised from the Joint Venture with Santos in EP 82 surrounding the Dingo Gas Field. This area of 1,492 km², referred to as EP 82DSA (Dingo Satellite Area), contains several leads identified on the existing sparse seismic grid as well as the Orange structure where gas was discovered in the Arumbera A1 Sandstone in Orange 2 in 1984. Orange 3 is part of the CY2020 exploration programme and is planned to air-drill the Arumbera Formation (drilled with conventional mud-based system and flowed gas to surface in Orange-2 at sub-commercial rates) and the Pioneer and Areyonga formations which flowed gas from the Ooraminna structure to the east.
Due to the proximity to the Dingo Gas Field and associated infrastructure, these satellite prospects are very attractive to Central as they could provide incremental reserves/resources in the event of drilling success. Additional seismic is required to delineate these leads, which are currently estimated to be of a similar size to the Dingo Gas Field.
Dingo 1 is currently suspended above the Arumbera Sandstone due to casing collapse. The Dingo 1 Re-entry will be part of the CY2020 exploration programme and target the Pioneer and Areyonga formations which flowed gas from the Ooraminna structure to the northeast. Once the Pioneer and Areyonga formations have been evaluated, they will be plugged and abandoned with the Dingo 1 Re-entry well able to produce from the Arumbera Sandstone.