Vintage Energy boosts Odin and Vali gas output ahead of July production uplift program
Vintage Energy (ASX: VEN) has made a strong start in its plans to ramp up production at the company’s Odin and Vali fields, reporting their best performance in six months.
On the eve of commencing its key production uplift program at the Southern Flank gas fields in the Cooper Basin, Vintage has reported that total production from Odin and Vali was 8% higher in May than in April, with average daily production up 5%.
The company attributed the increased output, which occurred counter to the decline anticipated through depletion, to operational measures taken in advance of the production uplift program Vintage plans to commence in July.
Strong Odin performance
Odin’s average daily gas production increased from 2.30 million standard cubic feet per day (MMscf/d) to 2.47MMscf/d, while Vali recorded a smaller than anticipated decline with average daily production of 0.76MMscf/d.
The improved numbers came on the back of workovers that included cycling Odin-2 for pressure build-up, back pressure reduction in the gathering system and flow and instrumentation reliability improvements.
Those measures will be accelerated in the upcoming production uplift program, which will target opportunities to increase raw gas production from between 2.1MMscf/d and 5.6MMscf/d.
The upcoming program will include a range of initiatives at Odin and Vali, including investigation and potential remediation of scale accumulation across the fields, the opening of additional production intervals in the Toolachee formation at Vali and swabbing and re-perforation at the Vali-3 well.
PEP 171 divestment
The news comes a day after Vintage increased the funds it has set aside for Odin and Vali by divesting its 25% interest in non-core onshore Victorian permit PEP 171 for $1.25 million.
The proceeds from the sale adds to the $2.1m it recently received in a capital raising.
Managing director Neil Gibbins said offloading the PEP 171 interest would support Vintage’s strategy of concentrating resources on advancing its Southern Flank gas fields project in the Cooper Basin and the Nangwarry contingent resource in the Otway Basin.