Brisbane, Australia (ABN Newswire) – Central Petroleum Restricted (ASX:CTP) advises that it has entered right into a Memorandum of Understanding (MOU) with its Mereenie co-venturers and Twin Bridges LLC (Twin Bridges), a personal US firm specialising in helium appraisal and manufacturing, to progress a helium restoration unit (HRU) at its Mereenie area within the Northern Territory in direction of a closing funding choice (FID).
The proposed HRU venture will goal manufacturing of as much as 60,000 scf of compressed helium gasoline per day, separating helium from the prevailing pure gasoline produced at Mereenie.
Key Factors
* Central and its co-venturers at Mereenie will work with skilled US-based helium developer and producer, Twin Bridges, to progress the HRU venture at Mereenie towards FID. (Central is operator of the Mereenie JV and holds a 25% curiosity by way of a subsidiary. Co-venturers embody Macquarie Mereenie Pty Ltd (50%), NZOG Mereenie Pty Ltd (17.5%) and Cue Mereenie Pty Ltd (7.5%))
The proposed HRU venture will:
o Extract helium from the prevailing Mereenie gasoline stream utilizing confirmed membrane ?know-how.
o Goal manufacturing of as much as 60,000 scf/d of compressed helium gasoline.
* Preliminary technical research and helium offtake negotiations have been accomplished indicating stable venture economics, leveraging on the prevailing gasoline stream and infrastructure at Mereenie.
Below the phrases of the non-binding MOU:
o Twin Bridges will design, construct, fund and personal the HRU, accelerating graduation of helium manufacturing and growing venture worth by entry to their confirmed helium processing and advertising experience.
o Working revenue from the HRU venture shall be shared 50/50 between Twin Bridges and the Mereenie JV.
* Indicative time period contract pricing for helium gasoline is at present very robust, with the approaching closure of the Darwin LNG plant making the proposed Mereenie HRU Australia’s sole supply of domestically-produced helium.
* Profitable manufacturing of helium at Mereenie may also show the potential of the Amadeus Basin as a world-class helium useful resource, the place Central has a fabric place in a number of giant sub-salt prospects the place relatively-high helium content material has beforehand been measured.
The MOU with Twin Bridges has a time period of 12 months, with the events working collectively to realize the mandatory design, engineering, industrial and monetary milestones required to achieve FID for the development of the HRU at Mereenie. The MOU gives for as much as a further 12 months exclusivity for Twin Bridges, who will draw on their experience in constructing related vegetation in North America. If the venture proceeds, Twin Bridges will design, construct, fund and personal the HRU plant which shall be built-in with the prevailing Mereenie gasoline processing facility operated by Central. Twin Bridges will market the produced helium with offtake preparations already nicely superior.
Preliminary monetary modelling signifies stable venture economics leveraging on the brownfield economics afforded by the prevailing gasoline stream and infrastructure at Mereenie and powerful helium markets.
It’s proposed that the HRU shall be sized to course of as much as 30 TJ/d of Mereenie gasoline, which generally incorporates over 0.2% helium, extracting as much as 60,000 scfd of helium gasoline utilizing confirmed membrane know-how.
The compressed helium gasoline is anticipated to be offered ex-field to a significant helium aggregator and distributor in Australia. The Mereenie JV will share the working income from the HRU venture on a 50/50 foundation with Twin Bridges.
The one home manufacturing of helium in Australia is anticipated to stop when the Darwin LNG plant closes later this yr. The proposed Mereenie HRU venture would then be the only real supply of domestically-produced helium, serving to to fulfill Australia’s strategic want for helium which is utilized in many essential well being and know-how functions.
Moreover, profitable manufacturing of helium at Mereenie may also show the potential of the Amadeus Basin as a world-class helium useful resource, the place Central has a fabric place in a number of sub-salt prospects. Helium concentrations of 6% have been recorded on the Magee- 1 nicely and 9% at Mt Kitty. Central is in search of to drill a number of sub-salt appraisal/exploration wells within the Southern Amadeus to additional check these prospects together with the promising Dukas lead. Seismic information may also be acquired on the Zevon result in the north-west of the Mereenie area later this yr to establish the placement for a attainable exploration nicely.
“We’re excited to be working with Twin Bridges to advance this chance to provide and promote the helium useful resource at Mereenie”, mentioned Leon Devaney, Central’s Managing Director and CEO.
“Helium is just produced at a handful of places world-wide, so profitable industrial manufacturing at Mereenie is probably going to attract worldwide consideration to the distinctive and probably huge helium assets of the Amadeus Basin. Helium can be present in our produced gasoline at Palm Valley and Dingo, and much greater helium concentrations have beforehand been encountered in sub-salt exploration wells all through the basin. Having a accomplice like Twin Bridges provides us a bonus in creating worth inside our present producing belongings, but in addition probably as a accomplice in exploring high-potential Amadeus Basin sub-salt prospects like Zevon”, he mentioned.
About Twin Bridges
The US-based Twin Bridges LLC, a personal firm, has over 10 years of expertise in helium growth initiatives in North America, together with the redevelopment of Pinta Dome and Navajo Springs in northeastern Arizona, and different necessary discoveries of helium in Colorado, Utah and Montana, in addition to different initiatives in numerous phases of growth in North America.
“We’re extraordinarily happy to be working with Central Petroleum and the Mereenie three way partnership on a helium restoration unit on the Mereenie oil and gasoline area,” mentioned David Wallace, Managing Accomplice at Twin Bridges. “It is a very thrilling alternative with stable economics utilizing confirmed know-how that has necessary strategic implications for Australia. Worldwide helium is in brief provide, and we’re excited to additional our involvement in fixing this essential provide scarcity.”
About Central Petroleum Restricted:
Central Petroleum Restricted (Central) is a well-established, and rising ASX-listed Australian oil and gasoline producer (ASX:CTP). In our quick historical past, Central has grown to develop into the most important onshore gasoline producer within the Northern Territory (NT), supplying industrial clients and senior gasoline distributors in NT and the broader Australian east coast market.
Central is positioned to develop into a major home vitality provider, with exploration and growth plans throughout 180,000 km2 of tenements in Queensland and the Northern Territory, together with a few of Australia’s largest identified onshore standard gasoline prospects. Central has additionally accomplished an MoU with Australian Fuel Infrastructure Group (AGIG) to progress the proposed Amadeus to Moomba Fuel Pipeline to a Remaining Funding Determination.
We’re additionally in search of to develop the Vary gasoline venture, a brand new gasoline area positioned amongst confirmed CSG fields within the Surat Basin, Queensland with 135 PJ (internet to Central) of development-pending 2C contingent useful resource.
Supply:
Central Petroleum Restricted
Contact:
Investor and Media Inquiries: Greg Bourke: +61-478-318-702 Sarah Morgan: +61-421-664-969
