Horizon Oil Advances Mereenie Gas Output with WM29 Completion and WM30 Drilling
Horizon Oil has successfully completed the WM29 well and commenced drilling WM30 in the Mereenie Development Program, aiming to boost gas production and meet new Northern Territory gas sales commitments.
- WM29 well successfully drilled and completed targeting Pacoota-3 reservoir
- WM29 tie-in expected by end of January 2025
- WM30 drilling commenced on 16 January 2025 at a crestal location west of WM29
- Development wells designed to increase Mereenie Field gas production
- Additional gas volumes to support Northern Territory Government Gas Sales Agreement
Mereenie Development Program Milestone
Horizon Oil Limited has marked a significant step forward in its Mereenie Development Program with the successful completion of the WM29 well. Drilled through the shallower Stairway and Pacoota-1 formations and extending into the primary Pacoota-3 reservoir, WM29 was cased and completed with the casing shoe set at 1,213.4 metres TVDRT and air-drilling continuing to 1,326.3 metres TVDRT. This well represents the first in a series designed to unlock additional gas production from the Mereenie Field in the Northern Territory.
The tie-in of WM29 is anticipated to be completed by the end of January, positioning Horizon to begin ramping up gas output shortly thereafter. This progress is timely, aligning with the recently executed Northern Territory Government Gas Sales Agreement, which requires increased gas volumes to meet regional demand.
WM30 Drilling Commences
The Mereenie participants include Central Petroleum Mereenie Ltd as operator, alongside Horizon Australia Energy Pty Ltd, Echelon Mereenie Pty Ltd, and Cue Mereenie Pty Ltd, collectively holding stakes in the project. This collaboration underpins the development program’s technical and commercial execution.
Strategic Implications and Outlook
The completion of WM29 and the commencement of WM30 drilling signal Horizon Oil’s proactive approach to capitalising on the Mereenie Field’s gas potential. By increasing production capacity, Horizon not only strengthens its supply position but also supports the Northern Territory’s energy security objectives. The development wells are expected to deliver incremental gas volumes that will feed into the government-backed sales agreement, providing a stable revenue stream and enhancing the field’s long-term viability.
While the immediate focus is on operational execution and tie-in completion, the broader implications include potential for further development wells and exploration activities that could extend the field’s productive life. Market watchers will be keen to monitor production ramp-up rates and any updates on gas sales volumes as the program progresses.
Bottom Line?
Horizon Oil’s Mereenie wells are set to reshape regional gas supply dynamics, with WM30’s progress the next critical milestone.
Questions in the middle?
- What production rates will WM29 and WM30 achieve once fully operational?
- How will the increased gas volumes impact Horizon Oil’s revenue and market position?
- Are there plans for additional development wells beyond WM30 in the Mereenie program?
