Vintage Energy, Metgasco and Bridgeport report ‘pleasing’ production at Vali-1 gas well
Vintage and its joint venture parties announced first production from the Vali gas field in February this year.
Vintage Energy (ASX: VEN) and joint venture partners Metgasco (ASX: MEL) and Bridgeport have reported “pleasing progress” from the producing Vali-1 well within the Cooper Basin.
The well has continued to perform “in-line” with pre-production forecasts and test results – maintaining consistent production and high availability throughout its 65 days online through to 26 April.
Vintage managing director Neil Gibbins described the well’s performance as “pleasing and highly encouraging”.
Vali-2 and Vali-3 wells
Meanwhile, remedial actions are underway for the Vali-2 and Vali-3 wells in the field and are expected to be completed by the end of June.
Operations at Vali-2 are suspended and awaiting the arrival of additional equipment and crew to remove fluid and other remedial actions.
Over at Vali-3, steady-state production averaged 1.3 million standard cubic feet per day (MMscf/day) of raw gas after it came online through to 7 April.
A shut-in was required due to SA Cooper Basin joint venture maintenance. Unfortunately, accumulation of water in the wellbore during the shut-in prevented gas flow resuming.
Mr Gibbins said the remedial program at Vali-2 and Vali-3 will lead to increased production and gas sales in the current quarter as they come back online.
“While we have been delayed at Vali-2 and Vali-3, our strong reserves position is unchanged.”
“Moreover, our recent experience in the market has upgraded our assessment of the value of our gas, over 80% of which remains uncontracted,” Mr Gibbins added.
Vali gas field
Vintage operates the Vali gas field with its 50% interest, while Metgasco and Bridgeport each hold 25%.
First gas from the Vali field was produced in February with the goal of supplying demand in the east coast market.
The field has 101 petajoules in proved and probably gas reserves and the joint venture has contracted to supply AGL with 9-16PJ of gas from start-up through to the end of 2026.
Vintage and its joint venture partners are also developing the nearby Odin gas field, which could potentially begin producing in latter half of this year.