Vintage Energy announces early resumption of production at Vali and Odin gas fields

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By Colin Hay - 
vintage energy ASX VEN early resumption production vali odin gas fields

Vintage Energy (ASX: VEN) and its joint venture (JV) partners have welcomed the recommencement of production from its Vali and Odin gas fields in the Cooper Basin.

Gas sales from both fields have resumed after the conclusion of a downstream outage related to the activities of a third party.

In good news for the field owners and their customers, the outage was completed well ahead of schedule.

Thanks to both fields being temporarily online, both Vali and Odin were shut in for approximately one week less than anticipated.

Importantly, both Vali-1 and Odin-1 restarted strongly without assistance following the shut-in, resuming with total raw gas production exceeding 7 Million standard cubic feet per day (MMscfd).

Vintage says it does not expect any further scheduled outages by the downstream operator for the current quarter.

Workover of Vali-2

Elsewhere, the Vali-2 joint venture is preparing for the commencement of a new operation to help increase production from the Cooper Basin project.

Vali continues to supply gas from the Vali-1 well under a long-term gas supply agreement with AGL Energy (ASX: AGL) while the JV awaits the commencement of a workover operation to deal with excess fluid in the well bore.

Vintage has now received notification from the contractor engaged to conduct the workover operations on the Vali-2 well that it has been forced to reschedule due to a delay in the availability of equipment and crew.

The Vali remedial plan will look to isolate the fluid-producing zones by plugging the well above these zones so the upper, predominantly gas-producing, zones can flow unimpeded.

Remedial activities are now not expected to commence until late November.

Odin unaffected

Meanwhile, the Odin field is supplying Pelican Point power station through a separate gas sales agreement.

The 497 megawatt combined cycle gas power plant is regarded as a critical infrastructure asset for energy security and system stability in South Australia.

The successful development of the Vali and Odin fields has been a great example of newcomer Vintage’s strategy to help meet the gas supply demands of an energy-hungry Australian east coast.