First Gas From Vali Gas Field
Melbourne, Feb 22, 2023 AEST (ABN Newswire) - Vintage Energy Ltd (
ASX:VEN), 50% interest holder and Operator of the ATP 2021 Joint Venture (other interest holders: Metgasco Ltd, 25%; and Bridgeport (Cooper Basin) Pty Ltd, 25%,) advises gas supply from the Vali gas field commenced Tuesday 21 February 2023.
Vali is supplying gas to eastern Australia under a long-term gas supply agreement with AGL Energy Limited ("AGL"). The field, among the larger gas discoveries in the Cooper Basin in the past decade, is independently certified as having proved and probable gas reserves of 101 petajoules (PJ) (Vintage share 50.5 PJ). Vali is to supply an estimated 9 PJ to 16 PJ gas to AGL from field start-up to end-2026, under Vintage's inaugural gas contract.
"First production and first revenue generation is a landmark event for every company" said Vintage Managing Director, Neil Gibbins.
"For an exploration company to reach this point, let alone within four and a half years of floating, is noteworthy. The achievement was made possible by the support and contribution of many, starting with our shareholders and ATP 2021 joint venturers. The efforts and vigilance of our employees and contractors has preserved an LTI and environmental incident-free record. Their persistence enabled the project to progress in the face of obstacles and disruption brought by Covid and consequent supply chain issues.
"AGL showed its willingness to step up and encourage new players with new supply; something keenly needed by the east coast gas market. By pre-paying the joint venture $15 million, AGL enabled Vali to be brought online much earlier than would otherwise have been the case. The long-term supply agreement with AGL was pivotal to Vintage securing the capital required to commit to the project.
"I would like to acknowledge the support and role played by the Queensland State Government in facilitating the discovery, appraisal and connection of the Vali gas field. The South Australian Government and the Cooper Basin Joint Venture are to be thanked for their role in enabling integration into the Moomba gas gathering network.
"Our expectation is Vali, and the nearby Odin gas field, will be supplying gas to eastern Australia for many years. The facilities and pipeline installed for these first flows will be an initial production solution on full field development in the coming years." said Mr Gibbins.
Vintage has refrained from contracting the bulk of the field's gas reserves, as it builds a thorough understanding of the field's producing reservoirs from its three existing wells. The understanding acquired over the first 6 - 9 months of production will inform the preparation of a full field development plan and marketing of Vali's uncontracted gas, which currently stands at 85 PJ (gross, Vintage share 42.5 PJ). The Odin gas field (located approximately 7 km west of Vali) has been independently certified as containing a 2C resource of approximately 40 PJ of gas (Vintage share 19 PJ).
Vintage floated on the ASX in September 2018, with a strategy to address the opportunities foreseen arising in gas supply to eastern Australia and a board and management team proven in finding and developing oil and gas in Australia.
Gas from Vali undergoes initial separation and metering through facilities recently installed and commissioned at the field from where it is transported to join the Moomba gas gathering network at Beckler. Processing is undertaken at the Moomba facility prior to sale.
Vali-1 is currently producing from the Patchawarra Formation, although the well has been completed as a dual producer with capacity to produce from the Toolachee Formation.
Work to bring Vali-3 then Vali-2 to commissioning is continuing. Current expectations are for first gas from Vali-3 in early March and from Vali-2 later in that month.
"The focus in this initial production appraisal period will be on assessing and learning from the performance of the individual producing reservoirs in each well, rather than short-term output maximisation.
"By the second half of this calendar year we expect to be in a position to outline the most value-accretive development plan for the field and the scale and profile of an expanded gas supply we can take to market," said Mr Gibbins.
Odin
Work on connecting the nearby Odin gas field to market has been advancing. The Fiberspar pipe to connect the field to the Vali-Beckler pipeline has been laid. FEED on the connection has commenced.
This link will provide an interim accelerated connection to enable Odin gas to flow to the east coast market as soon as practicable.
Supply from Odin through the interim accelerated connection is projected to be possible in the third quarter of calendar 2023.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/GK62177B
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.
| ||
|
