Vintage Energy starts work to bring Odin gas to east coast market
Vintage Energy’s revised strategy involves building resources to maximise value from the Vali gas field as well as ensuring infrastructure is secured with appropriate capacity.
Vintage Energy (ASX: VEN) and its partners in the PRL 211 joint venture have announced the start of a work program to bring the Odin gas discovery to market at the earliest opportunity.
The partners — Vintage (50% equity and operator), Bridgeport Energy (25%) and Metgasco (ASX: MEL, 25%) — have embarked on concept engineering to connect the gas field to the proposed Vali-Beckler pipeline, and the preparation of a commercial plan for marketing of produced gas.
It is expected these initiatives, as well as the securing of a gas sales agreement with potential offtake partners, could, subject to joint venture and regulatory approvals, see field work begin in the first half of next year, and gas sales from Odin starting from the latter half of 2023.
Customer interest
Vintage managing director Neil Gibbins said commitment to the Odin work program was supported by keen customer interest.
“There is strong inbound inquiry on the availability of Odin gas for supply to eastern Australia and a clear underlying need for new sources of gas supply to be found for that region,” he said.
“The joint venture has decided to prioritise gas sales in the near term over exploration, with concept engineering and commercialisation activities being the necessary first steps.”
Once these steps are completed, the partners will proceed to front-end engineering and design and detailed engineering, procurement and construction.
Odin resource
The Odin gas discovery was made in May 2021 and has been independently assessed as containing a gross 2C contingent resource of 36.4 billion cubic feet across the field’s Toolachee, Epsilon, Patchawarra and Tirrawarra formations.
Odin-1 was flow-tested with a stable rate of 6.5 million standard cubic feet per day from Epsilon and Toolachee, recorded at a flowing wellhead pressure of 1,823psi (pounds per square inch) through a 28/64” fixed choke.
Vali gas field
Odin is mapped to extend into licence ATP 2021 (owned by the same partners) where the Vali gas field is currently being prepared to commence supply to AGL Energy (ASX: AGL) from October.
The Vali well completion program kicked off this week, will include completion of the Odin-1 well.
Gas from Vali is to be transported to Moomba for processing by the Vali-Beckler pipeline.
Construction of the pipeline is due to commence in August and the route has been designed to pass by the Odin gas field.