Palm Valley Gas Field

Tenement Information

Tenement Area
(km²)
Location Operator CTP Consolidation Entity Other JV Participants
Registered
Interest
(%)
Beneficial
Interest
(%)
Participant
Name
Beneficial
Interest
(%)
OL 3 616 Amadeus Basin NT Central 100 100

 

Facility Details

Palm Valley gas is produced at low pressure from the wells and transported via flow lines to a production facility where it is compressed and dehydrated.  The gas is then supplied to the transmission pipeline for transport to the customers in the Northern Territory and east coast gas market.

Description and Geology

Gas was discovered at the Palm Valley 1 well in 1965 with the gas primarily reservoired in an extensive fracture system in the Lower Stairway Sandstone, Horn Valley Siltstone and Pacoota Sandstones at depths from 1,800 to 2,200 m. The anticlinal structure is approximately 29 km in length and 14 km in width with well locations initially selected from surface mapping and ease of access.

Production

The Palm Valley Gas Field comprises four gas producers with one well used to reinject water and four wells used for pressure monitoring. Three wells did not flow gas at economic rates and were plugged were abandoned. After cumulative production of 183 PJ, the field was shut in between 2015 and 2018 during a market-constrained period.

In 2019, the Northern Gas Pipeline began commercial operation and provided access to the east coast gas market. The Palm Valley Field was ramped up to an initial rate of approximately 8 TJ/d before levelling at 6 TJ/d after a number of months. Palm Valley 13 (PV13) was drilled in 2018 and brought online in May 2019. As at January 2020, PV13 has continued to reliably produce approximately 7 TJ/d, bringing Palm Valley’s capacity to 13 TJ/d.

Appraisal and Development

Before finalising future development activities in the Palm Valley Gas Field, a full field review was conducted. The areas of focus have been well integrity and performance, field pressure decline, and operating expenditure. The success of Palm Valley 13, which accounts for more than half of the fields capacity, has also been instrumental in focusing efforts for future activities.

The upcoming CY2020 drilling programme will include a second development well intersecting the main producing intervals at Palm Valley. To minimise cost, following the suspension or abandonment of the Palm Valley 12 (PV12) exploration well (Arumbera Sandstone Target), PV12 ST1 will be drilled to target areas of high natural fracture density within the Lower Stairway, Horn Valley and Pacoota formations. As such, the PV12 and PV12 ST1 will have the potential to both discover new resources and add near term production.

Exploration

Central has performed studies to assess the prospectivity of the Arumbera Sandstone (PV12) at Palm Valley. A well proposal has been generated, and Central intends to drill this prospect in 2020 which is targeting a mean prospective resource of 131 PJ. Central has also performed studies to assess the prospectivity of the Palm Valley West structure (Stairway, Horn Valley and Pacoota targets), and outlined a field mapping work programme to mature the evaluation. An exploration well is planned for 2020 which is targeting a mean prospective resource of 51 PJ.