Vintage Energy’s Odin gas coming on strong
Vintage Energy (ASX: VEN) is continuing to celebrate the commencement of production from its Odin natural gas field with strong flows continuing from its new inland Cooper Basin operation.
After being brought online last week, Odin has continued to ramp up its flow rates, performing above the company’s expectations at this stage.
Located in the South Australian permit PRL 211, the Odin field is operated by Vintage Energy with a 50% interest in the petroleum retention licence along with its joint venture partners Metgasco (ASX: MEL) (25%) and Bridgeport (25%).
Gas flowing to Pelican Point power plant
Odin-1, the lone well drilled to date in the permit, is supplying gas to the Pelican Point power station which is owned by a joint venture of ENGIE Australia and New Zealand (72%) and Mitsui & Co Ltd (28%).
Located 200 km north of Adelaide, the 497 megawatt combined cycle gas power plant is regarded as a critical infrastructure asset for energy security and system stability in South Australia.
Under the initial contract, Odin gas is now being supplied to Pelican Point until 31 December 2024, with negotiations to expand on that initial contract currently underway.
Flow rates under control
Vintage managing director, Neil Gibbins, said that while rates have been stepped up and are ahead of expectations, the company is continuing to manage well head pressure.
The well has recently averaged production of 6.0 million standard cubic feet per day (MMscfd) at an average flowing wellhead pressure (FWHP) of 1649 pounds per square inch gauge (psig) over a 4-day period.
Mr Gibbins said the high flowing wellhead pressure has highlighted the well’s excellent deliverability potential. However, at the same time production is being controlled to manage flowing temperatures within the limits of the well’s composite pipe connection.
“This rate is slightly above the targeted rate for initial production from the well and was achieved ahead of expectations,” he said.
Odin-1 flowed 6.5 million standard cubic feet per day on test after its discovery in May 2021.
“With 5 days of solid production history we have the data which shows Odin-1 is a good well from which we expect to realise a significant uplift in our production and cash generation.”
Importantly, associated water production has been negligible and in line with expectations.
Odin-1 has been completed as a Toolachee and Epsilon formation gas producer, differing from the nearby Vali gas field as the well has not been completed for production from the Patchawarra formation.
The JV is assessing the potential to tap into the Patchawarra in the future.
The JV is also looking to drill a second well at Odin to follow up on the significant exploration potential identified in the permit.
JV now has dual gas operations
Odin is Vintage and the JV’s second successful commercial gas field after the Vali project came onstream earlier this year.
The JV’s nearby Vali gas field began operations from Queensland permit ATP 2021 in late February 2023 and is supplying gas to eastern Australia under a long-term gas supply agreement with AGL Energy (ASX: AGL).
Vali is contracted to supply an estimated 9PJ to 16PJ gas to AGL from field start-up to the end of 2026, under Vintage’s inaugural gas sale agreement.
The field, among the larger gas discoveries in the Cooper Basin in the past decade, is independently certified as having proven and probable gas reserves of 101 petajoules (PJ) (Vintage share 50.5PJ).
Notably, the JV’s Vali and Odin gas supplies are exempt from the $12/GJ price cap set by government regulators, making any new discoveries or increases in production very attractive.