Quarterly Activity - Cashflow Report
Melbourne, Jan 29, 2021 AEST (ABN Newswire) - FEED for the Vali-1 ST1 connection to the Beckler Field (which is connected to the Dullingari facilities and ultimately Moomba) was awarded to GPA Engineering. The main objective of the now completed FEED phase was to complete the necessary engineering to identify long lead items and refine the cost estimate for a final investment decision, which will then initiate the procurement stage.
To maximise value from the Vali gas field, through increased production and resultant cash flow, further wells are planned. To this end, potential locations for further drilling in the field have been identified and are under discussion within the joint venture, with rig scouting for these wells underway. The development concept for the Vali gas field (refer ASX release dated 17 September 2020) identified that up to nine fracture stimulated vertical wells will be targeted for optimal production from reservoirs in the Patchawarra Formation and the Tirrawarra Sandstone. The first two wells in this program are under consideration for drilling in the first half of 2021 (subject to regulatory and joint venture approvals and rig availability), and they will appraise upside potential in sands within the Toolachee Formation and Nappamerri Group.
Completion of the Vali-1 ST1 well is necessary ahead of connecting the well into the Moomba gathering system. During the quarter, production tubing was run into the hole with isolation packers successfully set on two occasions, however, pressure testing via the production tubing in the well bore indicated a leaking seal assembly on the completion. A black viscous substance was noted as a film on the first packer assembly after its retrieval from the borehole. The substance may be precipitating on the casing and causing the packer leaks under pressure testing. Samples have now been sent for analysis to determine chemical composition and a plan will be developed to remove the material on returning to site to finalise the completion. Although frustrating, deferral of the completion is not critical to the timeline for first production.
Cultural Heritage and environmental surveys were recently completed in ATP 2021 for the surface facility, flowline and possible future well locations. The process was completed in a timely manner with the Wongkumara People, Erias/environmental projects and GPA/FYFE and we appreciate and thank all parties for their effort to complete this work in a timely manner.
First reserves for the Vali Field were certified by ERC Equipoise Pte Ltd ("ERCE"), which completed a rigorous and independent review of the Vali gas discovery and subsequent flow results. The Vali-1 ST1 well discovered stacked gas pay in the Nappamerri, Toolachee, Patchawarra and Tirrawarra 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 of 12.3 billion standard cubic feet ("Bcf"), 2P of 30.3 Bcf and 3P of 78.9 Bcf 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.
To view the quarterly report, please visit:
https://abnnewswire.net/lnk/GC1Q64TX
About Vintage Energy Ltd
Vintage 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.
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