Vali-3 net gas pay ‘exceeds expectations’ for Cooper Basin partners Vintage Energy and Metgasco
Gross 2P reserves are estimated for the Patchawarra reservoir only, with Vintage hopeful that upside could come from the shallower Nappamerri and Toolachee formations.
Net gas pay results from the Vali-3 well in the Cooper Basin ATP 2021 project have “exceeded the expectations” of joint venture partners Vintage Energy (ASX: VEN, 50% and operator) and Metgasco (ASX: MEL, 25%).
The well has delivered the largest net pay results of all wells drilled to date in the Vali field (Vali-1 ST1, Vali-2 and Vali-3), with 178 metres identified in the Patchawarra and Tirrawarra formations and work ongoing to assess potential further pay in the Epsilon and Toolachee formations.
Vali-3 reached a total depth of 3,186m at the end of June, achieving the main objective of intersecting the Patchawarra formation at a depth consistent with a pre-drill interpretation of the Vali structure.
Wireline logging data has been analysed, showing an estimated 165m of net gas pay within Patchawarra, comprising 101m of conventional (porosity equal to or greater than 8%) and 64m of unconventional (porosities ranging from 6% to 8%) net gas pay.
By comparison, the Patchawarra formation in the Vali-2 well had 101m of net gas pay in conventional sandstones, but only 16m of unconventional net gas pay.
Approximately 13m of net gas pay was also identified in the deeper Tirrawarra sandstone.
Gas trapped in the unconventional sandstones will likely be accessed via well stimulation.
During drilling, gas shows were observed in the lower Nappamerri Group, Toolachee andEpsilon formations and further technical work is needed before the amounts can be quantified.
Oil shows
Oil shows were also observed through the late Cretaceous, Jurassic and Triassic sediments, as well as the uppermost Permian-aged Toolachee formation.
Similar shows were encountered in Vali-1 ST1 and Vali-2.
The shows are considered to be supportive of oil migration and potential oil accumulations within the ATP 2021 permit, where more than 12 oil leads have been identified.
“We now have a significantly higher volume of gas than previously estimated within the Odin and Vali fields and [it is highly likely] we will achieve approval to commercialise the Vali-Odin gas production hub later this year,” the joint venture said.
Cased wells
Vintage, Metgasco and private equity partner Bridgeport Cooper Basin (25%) now have three cased wells in the Vali field available for future production.
Well data will be sent to Perth-based energy consultant ERC Equipoise to update the reserve certification and results are expected by the end of this quarter.
Discussions are well advanced with a number of parties regarding gas pre-sales and flowline infrastructure funding to connect the Vali field to the Moomba gas gathering network.
The partners said any agreements would be carefully structured to ensure the Vali project is progressed in the most capital-efficient manner.