Vintage Energy and JV partners finalise acquisition of Beach Energy’s equity in Odin gas field
Prior to shut-in, Odin-1 achieved a stable raw gas rate of 6.5MMscfd.
Vintage Energy (ASX: VEN) and its joint venture partners in PRL (petroleum retention licence) 211 in the Cooper Basin have finalised the acquisition of Beach Energy’s (ASX: BPT) 15% equity in the licence.
The company, together with Metgasco (ASX: MEL) and Bridgeport (Cooper Basin), has acquired its respective share in Beach’s stake in proportion to its existing holding.
Odin gas field
PRL 211 contains the Odin gas field which was discovered and flow tested late last year, and the Vali gas field which is being prepared to commence production by mid-year.
It is now owned by Vintage (50% equity and operator), Bridgeport (25%) and Metgasco (25%).
The transaction has also redistributed approximately 3.1 billion cubic feet of PRL 211’s 2C contingent resource which was previously attributable to Beach.
Vintage’s net share will increase by 1.55Bcf to 17.5Bcf.
PRL 211 is located close to existing Cooper Basin producing gas fields and infrastructure and is adjacent to ATP 2021, which is also held by the joint venture with the same equity distribution.
Vintage said the alignment of interests across the two licences would promote efficiencies in planning and optimal field operations.
Transaction consideration
Consideration for the Beach transaction has been structured to align with successful production from Odin with an initial milestone payment by the joint venture of $1 million and a further $1.25 million payable in two instalments on achievement of specified milestones.
Odin-1 was drilled under a farm-in by Vintage and delivered a stable flow rate of 6.5 million standard cubic feet per day at a flowing wellhead pressure of 1823 psi (pounds per square inch) through a 28/64 inch fixed choke in its initial testing.
The field is mapped to extend beyond the eastern boundary of PRL 211 and into ATP 2021.
Positive and valuable
Vintage managing director Neil Gibbins said the acquisition of Beach’s equity would be a “positive and valuable” move for the company.
“Odin is a promising discovery with bright prospects to supply gas to the east coast domestic gas market it is very well located for rapid and economic development with its proximity to our Vali gas field and the Moomba gas gathering network,” he said.
“The potential to add value through successful appraisal and development of Odin is good… the transaction structure recognises the expectation that Odin will become a producing gas field and we are very pleased to increase our stake in the asset.”