Vintage Energy mobilises Schlumberger drill rig to spud Odin-2 gas well

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By Imelda Cotton - 
Vintage Energy ASX VEN Odin 2 rig spudding

Vintage Energy (ASX: VEN) has mobilised a Schlumberger SLR 184 drilling rig to the Odin-2 well site in the Cooper Basin and is currently completing a routine pre-spud inspection.

Spudding of the gas well is expected to occur next week, subject to rig acceptance and weather conditions.

Odin-2 is located 1.1 kilometres north-east of the Odin-1 appraisal well that commenced gas production in September.

The well is feeding the Pelican Point power station in South Australia under a sales agreement that extends to December 2026.

Pelican is a joint venture between Engie Services Australia and New Zealand (72% equity) and Mitsui Group (28%).

If drilling is successful, Vintage expects to complete and connect Odin-2 to Pelican Point, with gas being sold to the power station under the existing contract.

Flagship asset

The Odin field has become a flagship asset for Vintage and contributed to a 96% in sales revenue for the company for the three months to December.

The addition of production from the Odin-1 well saw the company increase its gas output by 60% for the same period.

The company said Odin-1 had performed “steadily and strongly” since coming onstream, reinforcing the field’s potential.

ATP 2021 venture

Odin-1 and Odin-2 sit within the ATP 2021 joint venture (JV) in which Vintage holds 50% equity alongside Metgasco (ASX: MEL) and Bridgeport (Cooper Basin), each of which owns 25%.

The wells are located in production licence PRL 211, which also contains the western part of the Odin field discovered by the same JV partners in 2021.

The eastern portion of the field is mapped to extend into ATP 2021.

In March, Vintage completed an $8 million capital raising to help bring in new gas production from the Odin field.

The raising was comprised of a $1.3m private placement to institutional investors and a $6.7m accelerated non-renounceable entitlement offer.

Farm-out agreement

In April, Vintage signed a farm-out agreement with Sabre Energy whereby Sabre will acquire a 50% interest in the PEL 679 exploration licence, also in the Cooper Basin.

Under the terms, Sabre will fund a 150 square kilometre 3D seismic survey and pay Vintage $200,000 as reimbursement of its share of costs incurred to the time the permit is granted.

Comprising a total area of 393 sq km, PEL 679 is located on the western flank of the basin, south-west of the Worrior field owned by Bass Oil (ASX: BAS).

The field has produced more than 4.5 million barrels of oil since production commenced in December 2003.