Palm Valley Gas Field

Tenement Information

Tenement Area
Location Operator CTP Consolidation Entity Other JV Participants
Interest 1
Interest 1
OL 3 616 Amadeus Basin NT Central 100 100 NZOG
Cue Energy

After completion of asset sale, expected August 2021

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 history

The Palm Valley Gas Field comprises four gas producers with one well used to reinject water and five wells used for pressure monitoring. 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. Palm Valley 13 (PV13) was commissioned in May 2019 and produced at a peak rate of approximately 7 TJ/d for 12-months, bringing Palm Valley’s capacity to a peak of 13 TJ/d during that time. Aggregate field production in mid-2021 was approximately 8 TJ/d.

Appraisal and Development

The successful horizontal PV13 well, which was commissioned in May 2019, continues to outperform and is declining slower than first anticipated.

As a results of this success, another horizontal production well is planned to be drilled using the wellbore of the proposed Palm Valley Deep exploration well (PV12) which is part of the Amadeus exploration program planned for late CY2021. PV12 ST1 will be drilled to target areas of high natural fracture density within the Lower Stairway, Horn Valley and Pacoota formations.


Central has plans to assess the prospectivity of the Arumbera Sandstone at Palm Valley by drilling the Palm Valley Deep (PV12) exploration well in late CY2021. The well will target a mean prospective resource of 123 PJ of gas (61.5 PJ net to Central, after completion of asset sale).