Vintage Energy-led JV granted renewal to expand oil and gas prospects at ATP 2021 permit

Vintage Energy (ASX: VEN) and its joint venture (JV) partners have the opportunity to fully evaluate numerous oil and gas prospects in central Australia after receiving a six-year renewal for permit ATP 2021 in Queensland.

With Metgasco (ASX: MEL) and Bridgeport, each of which owns a 25% stake, Vintage is now able to move ahead with the assessment of ATP 2021 while awaiting the completion of production licence applications for the Vali and Odin gas fields.

The JV has identified a large number of exploration prospects within the balance of the ATP area, some well-defined on 3D seismic imaging and others requiring acquisition of data to better define structures prior to drilling.

Prospect refinement

Managing director Neil Gibbins said the permit renewal allows the JV to move ahead with a sequential flow of prospect refinement and exploration drilling over the period of tenure.

“The permit is well located within a prominent oil and gas producing area containing numerous prolific producing fields like Dullingari, Epsilon and Beckler [and] is also close to existing infrastructure and possesses excellent oil and gas prospectivity,” Mr Gibbins said.

“There is a great opportunity for value creation […] and we look forward to addressing that in this permit tenure.”

Multiple targets

The renewed area and production licence application areas contain 23 oil prospects and leads and three gas prospects.

Of significant interest are the gas prospects, which have the potential to contain a mixture of structurally and stratigraphically trapped gas in an area near key infrastructure.

“The nearby, highly reliable Vali gas separation, metering and export facility is currently underutilised and offers a convenient and cost-effective hub for simple tie-back of additional gas discoveries,” Mr Gibbins said.

Clear-cut value add

Metgasco managing director Ken Aitken said any discoveries flowing from future exploration programs at ATP 2021 would be a clear-cut value-add for the JV.

“Future gas discoveries can be efficiently integrated into the existing Vali and Odin production hub infrastructure,” he said.

The JV completed the Vali-Beckler gas pipeline and facilities construction in 2023, linking the field to the significant South Australian Cooper Basin gas gathering network and the east coast of Australia.

Gas from the permit is currently supplying AGL Energy (ASX: AGL) under a long-term contract.