Vintage Energy gears up for busy early 2021 including first gas production from Vali-1 ST1

Vintage Energy ASX VEN Cooper Basin ATP 2021 Vali gas field project Otway Basin Perth
Vintage Energy plans to be producing gas from Vali-1 ST1 before the end of June next year.

Vintage Energy (ASX: VEN) has completed front end engineering and design for its Vali-1 ST1 flowline connection in Queensland’s Cooper Basin, while scheduling testing for Nangwarry-1 early next year and securing a rig for its planned Cervantes-1 drilling program.

The news follows Vintage revealing earlier this month independently certified gross 2P (proved and probable) reserves for the Patchawarra formation in its 50%-owned Vali field within the Cooper Basin.

These 2P reserves for the Patchawarra formation are 30.3 billion cubic feet – equating to 33.2 petajoules of gas.

Following the completion of FEED for the Vali-1 ST1 flowline connection, Vintage plans to begin the engineering and installation in January.

Vintage managing director Neil Gibbins said completing the FEED for Vali-1 ST1 brought the asset a step closer to production.

“We are hopeful that subject to appropriate agreements and joint venture approval, laying of the flowline will commence in Q2 2021.”

“The next steps will be the procurement of long lead items for the Vali field connection.”

Mr Gibbins added the company was aiming for first production before the end of June next year.

Looking ahead, Vintage is hopeful the gas produced from the Vali field will be “much greater” than the 2P reserves with stacked gas pay also identified within the Nappamerri and Toolachee formations.

The company anticipates these formations could provide additional gas.

Nangwarry-1 testing and Cervantes joint venture

Meanwhile, over at Vintage’s 50%-owned Nangwarry-1 well in Victoria’s Otway Basin, testing will begin in late January/early February.

All long lead items have been ordered and contractors confirmed.

Vintage anticipates the testing will take about three weeks.

In the Perth Basin, Vintage has a 30% interest in the Cervantes oil joint venture.

The joint venture parties have secured a non-binding letter of intent with Refine Energy to use its nearby Refine Rig-2 to drill the Cervantes prospect in the first half of 2021.

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