Vintage Energy confirms start of production from Vali-3 gas well
Two wells from the Vali field are online and providing sales gas to AGL Energy.
Vintage Energy (ASX: VEN) and joint venture partners Metgasco (ASX: MEL) and Bridgeport (Cooper Basin) have commenced production from the Vali-3 well in the recently-commissioned Vali gas field in the Cooper Basin.
Start-up is reported to have taken longer than anticipated as water had accumulated in the wellbore during the 237-day period since well completion and required clean up.
Some water production from the Patchawarra and Tolachee formations had always been forecast and is being managed through separation facilities and evaporation ponds.
The well is reported to have maintained stable production since first gas.
The initial phase of production is directed towards field appraisal, with data to be used towards preparation of a full field development plan.
The appraisal process will be reflected in variable production as individual zones and formations are assessed and optimised.
The start of production from Vali-3 is believed to be an important milestone for Metgasco and the Vali-Odin gas hub.
The hub is expected to supply gas to eastern Australia over many years under a sales agreement secured with AGL Energy in March 2022.
Vali-1 production
Vintage said the Vali-1 well had completed its first month of production, performing “consistently and strongly” with flow rates meeting expectations and test results.
Gas production has been in line with pre-production forecasts, averaging a raw gas stream rate of 3.9 million standard cubic feet per day during the first 30 days.
Water production has declined consistent with expectations as the well continues to clean up fluid pumped during fracture stimulation.
Vali-1 and the Vali facility recorded a 99% availability in the first month of production.
Total system availability for the period was 95%, inclusive of non-operated downstream infrastructure.
Field formations
Vali-1 production is being sourced from the Patchawarra Formation.
Initial production from Vali-2 and Vali-3 is being sourced from the Toolachee Formation and will appraise the production performance in a crestal location on structure (Vali-2) and towards the outer limit of the structural closure (Vali-3).
Production from the Patchawarra Formation at Vali-2 and Vali-3 will be addressed at a later stage as part of the appraisal-through-production strategy.