Major milestone for Vintage Energy as new Odin gas operation comes on-stream

Just five years after launching with a strategy to find and supply gas to an energy hungry Australian east coast, Vintage Energy (ASX: VEN) has brought its second field on stream.

The company’s Odin-1 gas development is part of PRL 211 in the onshore Cooper Basin, and is now sending gas to fulfil an agreement to supply the Pelican Point Power (a joint venture between ENGIE Australia and New Zealand (72%) and Mitsui & Co Ltd (28%).

The Pelican Point power station is a 497 megawatt combined cycle gas power plant in South Australia operated by ENGIE and Mitsui. The plant is regarded as a critical infrastructure asset for energy security and system stability in South Australia.

Under the initial contract, Odin gas is now being supplied to Pelican Point until 31 December 2024. Negotiations to expand on that initial contract are underway.

Second successful start-up

Vintage is the operator and a 50% interest-holder in PRL 211 (and permit ATP 2021) with its joint venture partners Metgasco (ASX: MEL, 25%) and Bridgeport (25%).

Located in the South Australian section of the Cooper Basin, Odin-1 was discovered in petroleum resource licence PRL 211 in 2021. Odin-1 has been completed as a Toolachee and Epsilon gas producer and it differs from the completion of the nearby Vali gas field wells in that it has not been completed for production from the Patchawarra Formation.  The joint venture will address the Patchawarra Formation at a later date.

Odin is Vintage and its joint venture partners second successful commercial gas field after its Vali project on ATP 2021 came on-stream earlier this year.

Second well planned

The PRL 211 joint venture is already considering the drilling of a second well at Odin and to follow up on the the significant exploration potential identified around both of its fields, where more than 40 petajoules of uncontracted 2P gas reserves are located.

Notably, the Vali and Odin gas supplies are exempt from the $12/GJ price cap set by government regulators, making any new discoveries very attractive.

Vintage managing director Neil Gibbins said first gas from Odin has come 10 months from commitment by the PRL 211 joint venture to accelerate connection of the field so supply to south-east Australia could commence at the earliest opportunity.

That accelerated connection, involving a 1.4 km linkage to the Vali-Beckler pipeline, has been completed within the targeted time frame of the September quarter 2023.

“Today’s announcement is a milestone event for Vintage, taking the company from a single field operation to where we have a revenue stream spread across two fields, with different customers and contracts,” Mr Gibbins said.

“Odin is expected to be a valuable complement to our existing production from Vali, with differences in producing zones, completion and contract. We expect Odin will deliver a substantial uplift to our gas production and sales revenue” he said.

Mr Gibbins said bringing Odin online safely and on schedule is the culmination of a concerted effort to execute concept engineering studies, commitment to a two-phase connection, pipeline installation, securing of ACCC authorisation and gas supply agreement contracting so gas could flow within what was a tight schedule.

“I would also like to record our appreciation for the support and facilitation provided by the South Australian Department of Energy and Mining towards bringing supply from this new gas field to market.”