Vali Field Reserves
Vali Field Reserves
Melbourne, Dec 14, 2020 AEST (ABN Newswire) - Vintage Energy Ltd (ASX:VEN) as operator of the ATP 2021 joint venture (Vintage 50%, Metgasco Ltd (ASX:MEL) 25% and Bridgeport (Cooper Basin) Pty Ltd 25%) is pleased to advise that ERC Equipoise Pte Ltd ("ERCE") recently completed a rigorous and independent review of the Vali gas discovery and subsequent flow results, and certified 1P, 2P and 3P reserves for the Patchawarra Formation within the Vali gas field.

Key Points:

- Gross 2P Reserves of 33.2 PJ (16.6 PJ net working interest) independently certified and booked

- Strong conversion of 2C Contingent Resources to 2P Reserves

- Potential for future resource bookings in Tirrawarra, Toolachee and Nappamerri

- Tie-in discussions for Vali Field to Moomba gathering system well advanced

The Vali-1 ST1 well discovered stacked gas pay in the Nappamerri, Toolachee and Patchawarra Formations, however, the scope of the ERCE reserves certification was for the Patchawarra Formation reservoir only. The reserves booking is the first for Vintage and supports commercialisation of the Vali gas field with its planned connection into the Moomba gathering system.

In its report, ERCE estimated gross 1P reserves for the Patchawarra Formation only of 12.3 billion standard cubic feet ("Bscf"), 2P of 30.3 Bscf and 3P of 78.9 Bscf which equates to 1P of 13.4 petajoules ("PJ"), 2P of 33.2 PJ and 3P of 86.6 PJ.

Vintage is hopeful that gas produced from the Vali Field will be much greater than the 2P figure estimated by ERCE, with upside to potentially come from stacked reservoirs, including the shallower Nappamerri Group and Toolachee Formation. Vintage has brought this project from farm-in, to discovery, to successful testing and now to reserves booking in just over one year, which is an outstanding achievement for a company at such an early stage since listing.

Managing Director, Neil Gibbins said, "This independent reserves booking by ERCE is an outstanding result, especially considering the rigorous process that ERCE underwent in compiling its report and certifying the reserves for the Patchawarra Formation within the Vali Field. This independent verification is a key piece that will allow us to confidently move forward with the connection of the Vali gas field into Moomba."

"We made it very clear from the outset that we wanted to become a gas producer and sell our gas into the Australian east coast domestic gas market, and I am extremely proud that we will soon be delivering on this major strategic goal. We have demonstrated our capability as an operator and, thanks to our excellent in-house technical team with a wealth of experience in the Cooper Basin, we look forward to adding to this discovery with a number of further leads and prospects identified for drilling in the area."

"To further enhance what we believe will be a highly profitable gas field, we are seeing a strengthening of the domestic spot east coast gas price, which is in part driven by the recovery of the global LNG market. As a result, we believe the timing of production from the Vali gas field next year could not be better."

About Vali-1 ST1

The Vali-1 ST1 well sits within the ATP 2021 permit and is located in Queensland. The well was drilled to a total depth of 3,217 metres measured depth on 10 January 2020, with the discovery of stacked gas pay in the Nappamerri, Toolachee and Patchawarra Formations.

The Vali-1 ST1 well penetrated a four-way dip closure mapped on the Snowball 3D seismic survey, with an interpreted log net gas pay (porosity cut-off of 6%) estimated at over 80 metres, with a gross 312 metre interval in the Patchawarra Formation. The Patchawarra Formation comprises multiple stacked sandstone reservoirs interbedded with shales and coals. In total there are 22 stacked reservoirs, 20 of which are interpreted to contain gas.

The Vali-1 ST1 well was fracture stimulated and tested from 24 July 2020 to 7 August 2020. Six fracture stimulation stages were successfully completed, with the well subsequently flowed over a period of four days at increasing chokes and gas flow rates. A two-day extended flow test was undertaken with a strong and stable gas flow rate of 4.3 MMscfd through a 36/64" choke at 942 psi wellhead pressure. The well was not flowed at maximum choke to limit disruption to proppant injected during the fracture stimulation process.

A development concept for the Vali Field was completed, with development plans for the field estimating up to nine vertical fracture stimulated wells, including the existing Vali-1 ST1 well. It is anticipated that the remaining wells will be drilled, completed and fracture stimulated at a rate of one or two wells per year, with the tie-in of wells to be via a 13 kilometre, dual four-inch composite pipeline to the Beckler field operated by Santos. The development is currently in the Front-End Engineering Design ("FEED") stage, with the installation of the flowline and first production planned for H1 2021.

To view the Vali gas field reserves, please visit:

About Vintage Energy Ltd

Vintage Energy Ltd ASX:VENVintage Energy Ltd (ASX:VEN) has been established to acquire, explore and develop energy assets principally within, but not limited to, Australia, to take advantage of a generally favourable energy pricing outlook.



Neil Gibbins
Managing Director
+61 8 7477 7680

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