Dingo Gas Field and Surrounding Area

Tenement Information

Tenement Area
(km²)
Location Operator CTP Consolidation Entity Other JV Participants
Registered
Interest
(%)
Beneficial
Interest¹
(%)
Participant
Name
Beneficial
Interest¹
(%)
L 7 469 Amadeus Basin NT Central 100 50 NZOG
Cue Energy
35
15
EP 82DSA² 1,489 Amadeus Basin NT Central 100

¹ After completion of asset sale, expected August 2021
² 20 graticular blocks excised from the Joint Venture with Santos in EP 82 as part of arrangements in the purchase of Central’s interest in Mereenie Oil and Gas Field.

Facility Details

High pressure gas is produced from the Dingo wells and transported via pipeline to the Dingo processing facility at Brewer Estate near Alice Springs.  From there, water and hydrocarbon condensates are removed and the pressure is reduced during the conditioning process to meet customer requirements.

Description and Geology

Gas was discovered in 1985 in the Neoproterozoic Arumbera A1 Sandstone during drilling of Dingo 1.  Four wells have been drilled on the structure with Dingo 4 being drilled into the water leg. The structure is 11 km by 5.6 km and not completely filled to spill.  The productive reservoir is at a depth of approximately 3,000 metres subsurface.

Production

The Dingo Gas Field Development, completed in April 2015, comprised the construction of wellhead facilities, gathering pipelines, compression, a 50 km gas pipeline (Pipeline Licence PL 30) to Brewer Estate in Alice Springs with gas conditioning and custody transfer metering facilities.  It was designed to service a gas sale contract with Territory Generation, now Power and Water Corporation.

Appraisal and Development

With the commissioning of the Dingo Gas Field and Pipeline culminating in the granting of the Consent to Operate, the Dingo Gas Sales Agreement became unconditional with commencement starting 1 April 2015.

Additional wells may be required to increase rates and service gas sales contracts.

Exploration

As part of arrangements in the purchase of Central’s interest in Mereenie Oil and Gas Field, Central (Operator) has a 100% interest in 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. The proposed Amadeus exploration programme includes the Orange 3 well, which 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. The Orange 3 well will target 401 PJ of mean prospective resource across these three formations in CY2022, subject to FID.

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 Deep exploration well will also be part of the proposed Amadeus exploration programme and will target 69 PJ of mean prospective resource from the Pioneer and Areyonga formations which flowed gas from the Ooraminna structure to the northeast (34.5 PJ net to Central after completion of asset sale).  Once the Pioneer and Areyonga formations have been evaluated, the well will be completed to produce from the Arumbera Sandstone. The Dingo Deep well will be drilled after the Palm Valley Deep well in late 2021/early 2022.

Opportunities

Exploration opportunities beneath Dingo Gas Field or in satellite structures as well as at undrilled deeper reservoir levels in the Orange structure have the potential to add significant reserves/resources and value by leveraging off the infrastructure now owned by Central.