Palm Valley Gas Field

Tenement Information

Palm Valley Gas Fields

Tenement Area
Location Operator CTP Consolidation Entity Other JV Participants
OL 3 639 Amadeus Basin NT Central 100 100

Facility Details

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.

Description and Geology

The discovery of gas at Palm Valley in 1965 was the first in the Amadeus Basin, and one of the first gas discoveries in Australia. Gas is primarily reservoired in an extensive fracture system in the lower Stairway Sandstone, Horn Valley Siltstone and Pacoota Sandstone at depths from 1,800 to 2,200 metres. The anticlinal structure is approximately 29 km in length and 14 km in width. Well locations were initially selected from surface mapping.

Production and Contracts

Gas was first supplied under contract to Alice Springs in 1984, and subsequently to Darwin from 1986. These contracts lapsed in 2012 and a new contract commenced in 2014, shortly after Central assumed ownership from Magellan. Gas is produced from five wells and compressed. One well is used to reinject water and two wells are used for pressure monitoring. Three wells did not intersect sufficient fractures and were abandoned.

As a result of the acquisition of the Palm Valley Gas Field effective 1 April 2014, Central commenced receiving revenue from gas sales. This led to the company becoming a multi-field oil and gas producer in the Amadeus Basin as well as an oil and gas explorer in this basin.

Gas sales are per nominations received from the purchaser. The Palm Valley Gas Field and the pipeline have capacity to produce and deliver at higher volumes and Central is looking to secure additional sales contracts.

Once in full operation the total sales of gas from Palm Valley and Dingo should reach over 3.3 PJ per annum providing an operating profit before interest and taxes of over $5 million annually. Central is actively seeking further sales in the Northern Territory.

Appraisal and Development

Accelerate production by “workover” of existing wells and capture additional sales contracts.


The Palm Valley Deep prospect (Palm Valley 12) has been matured to drillable status. Central has acquired the Sacred Site Clearance Certificates from the Central Land Council and is in the final stages of clearances from recent Archaeological surveys of the drill and camp pad. Once finalised Central will complete the drilling programs and acquire the appropriate regulatory permission and clearance to drill Palm Valley 12 in early 2016. The objective is a test of the deeper Arumbera Sandstone which is an established gas bearing reservoir in the Dingo Gas Field located some 100 km to the east. The structure has a similar area to the existing gas pool in the Pacoota Sandstone.

Palm Valley West is a lead evident on Landsat and surface mapping, which has recently been investigated and upgraded. Additional field mapping is aimed at defining the relief and extent of the feature to underpin a decision to acquire seismic or drill. In the event of success, gas could be processed through existing production facilities thereby increasing the attractiveness of the prospect.


Central is actively reviewing further opportunities to enhance gas flow rates and reserves in this field and licence area. With the benefit of new technology and rising gas prices, Central’s ambitions are two-fold:

  1. optimise field productivity and capture additional sales contracts
  2. define exploration opportunities such as “Palm Valley Deep” and nearby “Palm Valley West”, which have the potential to add significant reserves and value by levering off the infrastructure now owned by Central.