Vintage Energy Ltd Stock Market Press Releases and Company Profile
Operations update
Operations update

Melbourne, July 31, 2023 AEST (ABN Newswire) - Vintage Energy Ltd (googlechartASX:VEN), 50% interest-holder and Operator of the ATP 2021 and PRL 211 joint ventures (other interest-holders: Metgasco Ltd, 25%; and Bridgeport (Cooper Basin) Pty Ltd, 25%,) provides the following update on its Cooper Basin projects Vali and Odin.

Odin

The PRL 211 joint venture is working to complete the accelerated connection of the Odin gas field so supply to domestic gas users can commence prior to the conclusion of the current quarter.

Site works to complete the connection of the Odin-1 gas well began on Sunday 23 July 2023, with the most recent milestone being successful completion of the hydrotest, confirming the integrity of the 1.4 km Fiberspar link from the well.

Work is proceeding in-line with the schedule for Odin to come on-line in September 2023.

As announced 15 May 2023, gas supply from Odin is contracted to Pelican Point Power Limited (a joint venture between ENGIE Australia and New Zealand (72%) and Mitsui & Co Ltd (28%), from start-up to December 2024.

Vali

As previously advised, the establishment of stable gas production from Vali-2 and Vali-3 has been delayed pending the removal of fluid in the well bores.

Vali-2

These operations, which had been delayed by equipment availability and rainfall, resumed last week, focussing initially on Vali-2.

Work undertaken to remove a flow restriction was successful. Flow rates from the Patchawarra Formation improved, albeit with lower gas production and higher fluid production rates than forecast, suggesting production of formation water from at least one zone.

Analysis of zonal water and gas production contribution will be conducted to understand the sources of fluid and gas production. This will be achieved by running a Memory Production Log Tool ("MPLT"), the timing of which will be influenced by 3rd party downstream outages scheduled for August and equipment availability.

On current information, it is expected the MPLT operation and analysis is most likely to occur in the second half of August.

Data acquired through the MPLT will help develop a strategy to maximise gas production from the well by reducing water production from the Patchawarra Formation. At this stage, it is premature to specify the action most likely to be adopted as it will be dependent on the number of zones involved and their position within the formation.

Vali-2 has been shut in, as fluid production rates have exceeded available handling capacity. Production from the well will resume temporarily for the conduct of the MPLT operations. Resumption of production thereafter is pending completion of the remedial work program.

Vali-3

It is expected Vali-3 will resume gas production in the latter part of August 2023.

The well commenced producing in late March 2023, before being shut in due to a scheduled downstream outage. Operations are required to remove fluid which accumulated in the well bore in the subsequent nonproductive period, preventing the resumption of gas flow. The operations are scheduled to be conducted in August 2023, in the same campaign as work at Vali-2, working around the scheduled downstream 3rd party outage scheduled in the earlier part of the month.

Water production from Vali-3 is within handling capacity, however, analysis of zonal gas and water contributions at Vali-3 is warranted, given fluid production has been higher than expected and prevented resumption of production after regular downstream outages necessitating remedial removal operations (swabbing). This dependence on swabbing operations to remove fluid accumulation after each outage has been complicated by equipment availability and site access and resulted in the well having been offline for all but 4 days since it commenced stable gas production.

Accordingly, MPLT data acquisition is planned for Vali-3 in order to identify intervention options for improving gas to water production ratios and well availability.

It is expected Vali-3 will remain online supplying gas into the field gas sales agreement, subject to interruptions and swabbing operations brought by future downstream outages.

Vali-1

As detailed in the June quarter activities report lodged with the ASX today, Vali-1 has continued to perform consistently and in line with expectations. Fluid production at Vali-1 is in line with pre-production modelling and well within the capacity of separation and storage facilities designed for the project.


About Vintage Energy Ltd

Vintage Energy LtdVintage 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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Contact

Neil Gibbins
Managing Director
+61 8 7477 7680
info@vintageenergy.com.au

Don Murchland
Investor relations
+61 439 300 932
don.murchland@vintageenergy.com.au



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