Vintage delays Vali production to optimize development plan

Vintage Energy Ltd., Adelaide, will delay completion of its Vali-1 ST1 gas discovery in southwest Queensland Cooper basin permit ATP2021 to assess upside of the gas resource at the field.

The company will now drill Vali-2 appraisal followed by a well in the nearby Odin prospect that straddles the boundary into permit PRL 221 in South Australia. The wells will be drilled before the flowline infrastructure purchase so that, if successful, they can be combined into the development plan.

Vali-2 will target an interpreted Toolachee formation gas accumulation that could provide additional reserves to those certified for the field in the Patchawarra formation. Both reservoirs are of Permian age.

Vintage also plans to run desktop studies to determine further prospectivity and potential upside in the region.

Benefits of the timing change include the ability to plan an appropriately sized flowline over the long-term and enable the potential for development of a production hub for the area, the company said.

Other advantages include providing gas marketing advantages and giving greater exposure to a rising gas price.

Vali-2 is expected to spud in April-May.

Odin-1, in PRL 211, will follow in May-June pending rig availability and other approvals.

The Odin structure lies up-dip of previously drilled Strathmore-1 which intersected interpreted Permian gas pay. The Odin prospect is a Permian four-way dip closure that plunges to the northeast into the Nappamerri Trough.

Odin has been de-risked by the success at Vali-1 ST1 and has potential for gas in the Toolachee formation as well as the Patchawarra formation.

Vintage holds 50% interest and operatorship of ATP 2021 with Metgasco Ltd. (25%) and Bridgeport Cooper Basin Pty Ltd. (25%).

In PRL 211, Vintage holds 42.5% and operatorship with Metgasco (21.25%), Bridgeport (21.25%), and Stuart Petroleum Pty Ltd. (wholly owned by Senex Energy Ltd.) (15%).