Highlights of Interview
- Most significant event in the Company’s history.
- Explains significant results of flow testing at Surpise of 380 bopd.
- First oil to surface in Central Australia since mid-1960s.
- Proposed extended production testing could deliver cash flows in 2 to 3 months.
- Impact on prospectivity and Central Petroleum’s tenement values.
- Impact on Central Petroleum’s funding position and current Share Purchase Plan.
Record of interview:
Central Petroleum (ASX:CTP: market capitalisation of ~A$60 million) recently announced the successful flow testing at 380 barrels of oil per day via a 32/64” choke for its Surprise-1 Re-entry H well in the Amadeus Basin the Northern Territory. What were the background circumstances that led Central Petroleum to drill the well and conduct the flow testing?
Managing Director, John Heugh
Firstly, before I outline the circumstances leading up to the well, this result has been the most significant event in Central Petroleum’s history. The Surprise-1 REH well has flow tested at 380 barrels of oil per day (bopd) and the prospect may have the potential for us to double that with additional drilling. At 300 bopd, for example, if such a flow rate was sustainable, it would generate annual gross cashflow of around $10 million at today’s oil price (we own 100% of Surprise). That is significant, considering our market capitalisation is around $60 million.
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