On 8 October 2026, Central Petroleum Limited (ASX:CTP) released an announcement titled Palm Valley 14 Update and Flow Test Result. The company said the PV14 well has been drilled and is being completed and tied into the Palm Valley production Facility as a gas producer, with commissioning expected by the end of October.

Flow test result and well data

Central reported a short-duration flow test through the rig that measured gas flows of 3.2 TJ/d (100% joint venture). The test interval was 2,102 to 2,729 metres measured depth through a three-quarter-inch choke for 90 minutes, with no water or oil recovered. The rate had not stabilised and was still increasing slowly at a flowing tubing head pressure of 210 psi.

The announcement included ASX Listing Rule 5.30 information. PV14 is a conventional deviated well in the Pacoota sandstone within OL3 in the Amadeus Basin, with gross and net pay of 200 metres and 45 metres in the Pacoota P1 Sandstone. Total depth was 2,942 metres measured depth (2,096 metres true vertical depth), with open hole packers set to isolate water ingress points. No hydraulic stimulation has been conducted, and gas composition has not been analysed but is expected to be consistent with current P1 production of around 98% hydrocarbons.

Water observed in later flows

Central said that subsequent flows to vacuum at surface showed evidence of water production. It described two possibilities: residual standing water that could continue to clean up, similar to PV12 where water was successfully isolated using packers and the well has since produced dry gas, or water ingress above the isolated section requiring further isolation or, in the worst case, cessation of production.

The company stated that short rig tests are insufficient to determine online production rates. Extrapolating the test conditions indicates an initial rate of about 3 to 4 TJ/d at typical gathering system backpressure, without allowing for further clean-up or water ingress. The company also said the initial test result was below its target and below recent wells such as PV12 and PV13.

PV15 and the forward plan

After PV14 is completed, the Ensign 974 rig will move to PV15, the second well in the two-well campaign. Together the wells aim to restore Palm Valley plant sales capacity to about 14 TJ/d (100% joint venture) and deliver at least 10 PJ of gas over their lives. Central said PV15 is about 2.3 kilometres from PV14 at surface and will target the southern flank of the Palm Valley anticline, rather than the northern flank targeted by PV14. The campaign is underpinned by the Northern Territory Government Gas Supply Agreement announced in April.

Central also said an investor webinar covering the FY2026 Annual Report and the PV drilling program will be held on Thursday, 15 October at 11am AEST.

Sector backdrop

Palm Valley produces from natural fractures in the Pacoota sandstone. The permit is held by Central (operator, 50%), Echelon Resources (35%) and Cue Energy Resources (15%), and all three companies released updates on 8 October 2026.

Gas wells in this type of reservoir can behave differently from one location to another, and operators use packers to isolate water-bearing intervals. Initial rig test rates are an early indicator rather than a measure of long-term performance.

Risks shareholders should weigh

The company states the initial test result was below its target. Water was observed in later flows, and in the worst case production could cease if water ingress above the isolated section cannot be managed.

The 3 to 4 TJ/d initial estimate is an extrapolation that does not account for further clean-up or water ingress, and a clearer view of long-term rates is expected only after the well is online.

The 14 TJ/d capacity target and 10 PJ Volume depend on both wells performing, and PV15 has not been drilled. Actual production rates depend on well performance and the decline of existing field output.

What’s next

Completion and tie-in are expected within the coming weeks, with commissioning before the end of October 2026. The rig will then move to PV15, and Central will host an investor webinar on 15 October. Shareholders may wish to watch for the well’s production performance, water behaviour and the PV15 spud.