Vintage Energy advances Odin-2 appraisal, eyes rapid commercialisation in Cooper Basin

Vintage Energy (ASX: VEN) continues to make good progress with the drilling of the Odin-2 appraisal well in the Cooper Basin, approaching key target zones spudded on 15 May 2024.

Vintage reported today that Odin-2 was drilling ahead in the main hole at 2,051m in the Poolowanna Formation.

The appraisal well has a forecast total depth of 3,156m and is expected to take approximately four weeks to drill and run wireline logs.

Odin-2 is located 1.1 kilometres north-east of the gas-producing Odin-1 discovery well and will appraise the Toolachee, Epsilon and Patchawarra reservoirs of the Odin gas field discovered in May 2021.

Follow-up work

The well is following up on exploration studies which have identified the location as a prime target to the reserves already supplying gas under a long-term contract.

If the well is successful, it will be fast-tracked for commercialisation at the earliest opportunity through a 1.1km flowline connection to the Vali-Beckler pipeline.

Vintage is the well’s operator and holds a 50% interest in the ATP 2021 permit containing the Odin field, which commenced production in 2023.

Its partners in the joint venture are Metgasco (ASX: MEL) and Bridgeport (Cooper Basin), with each holding 25%.

Odin-3 proposal

Vintage recently announced it could potentially proceed on its own with the drilling of an Odin-3 appraisal well.

The company reported that after due consideration its partners declined to support drilling Odin-3 immediately after Odin-2 in the current campaign.

However, Vintage stated it will continue to pursue drilling Odin-3 at the earliest opportunity while also recommending and investigating further projects and activities at both the Vali and Odin fields.”

“Odin-3 is designed to appraise the western flank of the field, access gas not addressed by the preceding two wells and to provide additional gas flow from this field,” said Vintage managing director Neil Gibbins.

“In Vintage’s view, the merits of the well are clear, especially when drilled back-to-back with Odin-2 and we consider the delay in drilling unfortunate.”

Cap raising success

Vintage raised $8 million in March to help fund the drilling of Odin-2 and Odin-3 to add new gas production from the Odin gas field.

Currently, all gas produced from Odin-1 is supplying Pelican Point Power under a sales agreement extending to December 2026.

Vintage and its partners in Odin are exempt from the government’s $12 per gigajoule price cap.