Vintage Energy (ASX: VEN) has moved to expand its central Australian gas production interests with the proposed acquisition of Metgasco’s (ASX: MEL) and Bridgeport Energy’s interests in the Odin and Vali fields.
Vintage will pay Metgasco and Bridgeport $5.9 million each to purchase their respective 25% stakes in the two permits, which contain the producing Queensland and South Australian fields.
Vintage elected to acquire Metgasco’s interest in the fields after it received a deemed sale offer for the 25% stakes held by the unlisted Bridgeport in the ATP 2021 and PRL 211 joint ventures.
Conditional Acquisition
The sales agreement with Metgaco is conditional upon Vintage securing funding commitments to meet its obligations by 28 December 2025 and completing the purchase of Bridgeport's 25% interest by 26 February 2026.
“We anticipate the chance to participate in the Vali and Odin projects will be highly attractive to parties with an interest in gas supply and the Southern Flank,” Vintage managing director Neil Gibbins said.
“There are precious few opportunities to acquire an interest in over 120 petajoules of uncontracted 2P gas, onshore, close to existing facilities and with existing gas supply contracts.”
Vintage will assume all assets, agreements, and other contractual rights and liabilities associated with the JV, including the pre-payment from leading energy utility AGL Energy (ASX: AGL) for the Vali Gas Field supply agreement.
Recent Gas Discoveries
Discovered in 2020, the Vali field has been producing since February 2023, and supplying gas to AGL under the long-term gas sales agreement.
The Odin gas field was discovered in May 2021, with the Odin-1 well successfully flow-tested in late 2021 and then connected to the Vali gas field facilities for processing at Moomba for sale to the Pelican Point Power in South Australia.
Both Odin and Vali have been the focus of major workover activities under Vintage’s ongoing Production Uplift program.
Significant Exploration Upside
Vintage is confident the two permits contain significant exploration upside for both oil and gas.
“Our appraisal work over the past three years has shown we have reservoirs and wells capable of sustaining reliable long- term supply,” Mr Gibbins said.
“The lessons acquired on what works and what to avoid have been incorporated into design and plans as we shift to operations prioritising production and economic returns.”
