Vintage Energy advances Cooper Basin gas projects with spudding of Odin-2 well

Vintage Energy (ASX: VEN) has achieved a key milestone in its plans to increase production at its onshore Cooper Basin gas projects with the spudding of the Odin-2 appraisal well.

Located 1.1 kilometres north-east of the producing Odin-1 well, Odin-2 will appraise the Toolachee, Epsilon and Patchawarra reservoirs of the Odin gas field discovered in May 2021.

The well follows exploration studies identifying the location as a prime target to add to the reserves already supplying gas under a long-term contract.

The appraisal well has a proposed target depth of 3,156 metres and is expected to take approximately three to four weeks to drill and test with wireline logs.

If the well is successful, it will be fast-tracked for commercialisation at the earliest opportunity through a 1.1km flowline connection to the Vali-Beckler pipeline.

Vintage is the operator and 50%-interest holder of the permit containing the Odin field alongside partners Metgasco (ASX: MEL) and Bridgeport (Cooper Basin), each of whom own 25%.

Capital raising

Vintage raised $8 million in March to help bring new gas production from Odin, needed for an energy-hungry east coast.

The capital raising was made up of a $1.3m institutional investor private placement and a $6.7m accelerated non-renounceable entitlement offer.

Vintage said the capital would fund the drilling of two appraisal wells in the Odin field, where it successfully commenced gas production from the Odin-1 well in mid-September 2023.

Currently, all gas produced from Odin-1 is supplying Pelican Point Power under a sales agreement extending to December 2026.

Vintage and its Odin partners are exempt from the government’s $12 per gigajoule price cap.

Cooper farm-out

Vintage recently signed a farm-out agreement with Sabre Energy for a 50% interest in the South Australian Cooper Basin exploration licence PEL 679.

It will retain a 50% interest in the licence – which it was awarded in the 2019 SA gazettal round – following the completion of the farm-out.

Sabre will fund 100% of a 150 sq km 3D seismic survey and pay Vintage $200,000 as reimbursement of its share of costs incurred until the permit is granted to obtain its interest.

Comprising a total area of 393 sq km, PEL 679 is located on the western flank of the Cooper Basin, southwest of the Worrior oil field, which has produced in excess of 4.5 million barrels of oil.

Vintage has identified three Jurassic four-way closures and one Permian Patchawarra Formation stratigraphic play from the sparse 2D seismic it has mapped to date.

It is located up-dip and along the trend of Permian-sourced hydrocarbons and is considered analogous to Beach Energy’s prolific Western Flank oil fields.

The company is currently in negotiations with the native title holders, the Dieri Aboriginal Corporation.