Echelon Resources’ PV14 Flow Test Shows 3.2 TJ/d, Below Target
Key Takeaways
- PV14 flowed approximately 3.2 TJ/d (100% JV) on a 90-minute rig test, below management's target and below PV12 and PV13.
- The test rate was still climbing at the 90-minute mark, and extrapolation points to initial production of about 3 to 4 TJ/d.
- Water is the swing factor: none surfaced during the test, but later flows to vacuum showed evidence of water, with the worst case being cessation of production.
- Commissioning is expected by the end of October, making the next production update the key catalyst.
- PV15, targeting the southern flank 2.3km away, follows PV14, with the two wells aiming for 14 TJ/d of plant sales capacity and at least 10 PJ of gas.
PV14 drilled and heading to production at Palm Valley
Central Petroleum (ASX: CTP) has successfully drilled the PV14 well at Palm Valley and is now completing it as a gas producer, with tie-in to the Palm Valley production facility and commissioning expected by the end of this month. A short-duration flow test through the rig measured gas flows of 3.2 TJ/d (100% JV).
That figure is below what the company was aiming for, as management acknowledges. The more useful reading comes once the well is online.
Key points from the 8 October 2026 update:
- PV14 has been successfully drilled and is being completed as a gas producer.
- The well is expected to be tied into the Palm Valley production facility and commissioned by the end of October.
- A flow test through the rig measured 3.2 TJ/d (100% JV).
- Drilling of PV15 will commence once completion activities are concluded at PV14.
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Flow test results and what they indicate
Test details
The flow test ran across the interval from 2,102m to 2,729m MD (measured depth). Here is how the test was set up and what it returned.
| Metric | Result |
|---|---|
| Test interval | 2,102m to 2,729m MD (1,903m to 2,041m TVD) |
| Choke size | ¾-inch |
| Test duration | 90 minutes |
| Final estimated gas rate | Approximately 3.2 TJ/d (100% JV) |
| Flowing tubing head pressure | 210psi |
| Liquids recovered | No water or oil recovered |
After 90 minutes, the gas rate had not stabilised and was still increasing slowly. That means the 3.2 TJ/d figure is a snapshot rather than a plateau.
Key well facts:
- PV14 is a conventional deviated well drilled into the Pacoota sandstone.
- The Pacoota P1 Sandstone is the primary productive interval, with gross pay of 200m and net pay of 45m.
- Total depth was 2,942m MD (2,096m TVD).
- Open-hole packers were set to isolate anticipated water ingress points, with the final packer landed at 2,729m MD (2,041m TVD).
No hydraulic stimulation (fracking) has been conducted, as Palm Valley produces gas from natural fractures. The gas composition has not been analysed, but is expected to be consistent with current P1 production, which contains around 98% hydrocarbons and minimal inert content.
Early production outlook
Extrapolating the flow test conditions indicates the well would initially produce at approximately 3 – 4 TJ/d, assuming a typical gathering system backpressure. The company notes this extrapolation does not account for any further clean-up or ingress of water.
Water is the open question. Although the test returned no water to surface, subsequent flows to vacuum at surface showed evidence of water production.
There are two possible readings. The water may be residual standing water in the well that could continue to clean up, which would be reflective of PV12, where water was isolated using packers and the well has since produced dry gas. Alternatively, it may indicate water ingress above the isolated hole section, requiring further isolation with packers or, in the worst case, cessation of production.
Leon Devaney, Managing Director and CEO
“PV14’s initial test result was below our target and less than recent wells, such as PV12 and PV13. We expect a clearer indication of long-term production rates after the well comes online later this month…”
How rig tests work and why PV14 is only the first read
A rig flow test is a short burst of production measured while the drilling rig is still on site. Central states that, as with all wells, short-duration production tests through a rig are insufficient to accurately determine online production rates.
Palm Valley adds a further complication. Its tight, naturally fractured reservoir makes it difficult to distinguish perched, disconnected water from water drawn from depth through open fractures.
For you as an investor, this means the 3.2 TJ/d figure should be treated as an early, incomplete data point. The real read is expected after commissioning, so the next production update is the key catalyst to watch.
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PV15 and the Palm Valley program forward plan
After PV14 is completed, the Ensign 974 rig will move to spud PV15, the second well in the two-well campaign. Together, the two wells are aiming to restore Palm Valley plant sales capacity to approximately 14 TJ/d (100% JV) and deliver at least 10 PJ of gas (100% JV) over their operating lives. Actual production rates will depend on well performance and existing field decline.
The investment is underpinned by the new Northern Territory Government Gas Supply Agreement announced by Central in April.
Mr Devaney said PV15 is located 2.3km from PV14 at surface and approximately 3km away at planned total depth. It will target the southern flank of the Palm Valley anticline rather than the northern flank targeted by PV14.
That would make PV15 only the second well after the successful PV12 to directly access the southern flank of the field. It is also closer to the field crest and further up-dip from possible water sources. In his words, a strong result at PV15 would keep the target sales capacity of 14 TJ/d attainable.
Ownership of PV14 and the OL3 joint venture in the Amadeus Basin, Northern Territory, is as follows:
- Central Petroleum: 50%
- Echelon Resources Limited (ASX: ECH): 35%
- Cue Energy Resources Limited (ASX: CUE): 15%
Flow rates in the announcement are quoted on a 100% JV basis, so they are not Central’s net share.
An investor webinar covering the FY2026 Annual Report and the PV drilling program will be held on Thursday 15 October at 11am AEST. Login details will be advised separately.
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