Vintage Energy remains on track for first gas from Vali in October as energy crisis continues

Vintage Energy (ASX: VEN) remains on target for first gas from its Vali field in October this year after revealing two of the four operational phases in the field’s development have been completed.

A well completion campaign that began in July has concluded, with four wells set up for gas production: Vali-1 ST1, Vali-2, Vali-3 and Odin-1.

Vintage managing director Neil Gibbons said the company had hit a “significant milestone” with the four wells ready for connection and gas production.

“Most importantly, we have reached this point free of lost time injuries and reportable environmental incidents.”

“Our focus now shifts to pipeline installation and facilities construction.”

Mr Gibbons said fabrication was underway and major equipment items were expected on-site in the coming months, which paves the way for commissioning.

Vali gas field

With its 50% stake, Vintage operates the Vali gas field in Queensland’s Bowen Basin in joint venture with Metgasco (ASX: MEL) and Bridgeport, which both hold 25% each.

The Vali field is located on ATP 2021 and comprises Vali-1 ST1, Vali-2 and Vali-3 wells.

Vali will supply between 9-16 petajoules of gas to AGL from first production through to the end of 2026 under a gas sales agreement that was announced in March.

AGL has already pre-paid $15 million to the joint venture for initial gas from the field.

This supply is between 9-16% of the Vali field’s proved and probable reserves of 101PJ.

Gas from the field will be conveyed to Moomba for processing and supplied to the east coast gas market.

In addition to the three Vali wells, the joint venture plans to connect Odin-1, which is located in the adjacent permit PRL 211. The permit lies in the South Australian Cooper Basin and is owned under the same joint venture terms.

Odin has gross 2C contingent resources of 36.4 billion cubic feet, and first sales from Odin-1 are expected in the second half of 2023.