Vintage Energy encounters a number of gas shows during drilling of Vali-2

Vintage Energy’s (ASX: VEN) 50%-owned Vali-2 well in the Cooper Basin in Queensland has reached its planned total depth of 3,240m, and encountered a number of gas shows in the Toolachee and Patchawarra formations as well as the Tirrawarra sandstone.

These gas shows were noted during drilling and the company is evaluating them via a wireline logging program.

Vintage pointed out the strategy behind Vali-2 was to assess the potential for gas in the Toolachee Formation four-way dip closure. This target had not been tested in the previous Vali-1 ST1 well.

“The positive news to-date is that gas shows in the Patchawarra formation, that are supported by preliminary wireline log results, are in line and consistent with those observed in Vali-1 ST1, with the Toolachee formation also showing promising signs,” the company added.

Vintage previously said any success in the Toolachee formation would provide additional reserves to those in the Patchawarra target.

Existing reserves in the Patchawarra formation currently sit at 12.3 billion cubic feet of gas (1P), 30.3Bcf (2P), and 78.9Bcf (3P).

Otway Basin

Over in South Australia’s Otway Basin where Vintage also has a 50% stake, data analysis is underway that was gathered from down hole gauges in the Nagnwarry-1 carbon dioxide well late last month.

Following the data analysis, updated volumetrics for the Nangwarry reservoir will be estimated and then be independently verified.

At present, Nangwarry has a best gross recoverable estimate of 25.1Bcf of carbon dioxide, with 12.6Bcf of this net to Vintage.

Earlier flow testing of Nangwarry-1 achieved 10.5-10.8 million standard cubic feet per day over a 36-hour period.

During shorter periods, the well flowed at rates as high as 22MMscfd.

“To put this flow rate into context, production of 150 tonnes per day of carbon dioxide only requires a flow rate of approximately 3MMscfd.  Clearly this well has productive capacity in excess of this,” Vintage managing director Neil Gibbins said.

“We are confident that, based on data to be collected from the shut-in over the coming weeks, Nangwarry-1 will exceed the current best (mid case) estimate,” he added.

With the success in the Otway and Cooper basins, Vintage’s bottom line has been given a boost after the Australian Tax Office issued the company a $1.7 million rebate on research and development costs incurred during FY 2019 and FY 2020.