Vintage Energy poised for production boost with activity across multiple wells
Vintage Energy (ASX: VEN) is preparing for a highly active third quarter, with multi-well activity expected to significantly boost gas production in central Australia.
A major focus will be the completion of the recently drilled Odin-2 appraisal well, which the company and its joint venture (JV) partners will bring online with production from sandstone in the Epsilon, Toolachee and Patchawarra formations.
After recent rain delays, the connection of the well for the commencement of appraisal production is expected to be completed in August.
Odin-2 success
Located in permit ATP 2021 in the Queensland section of the Cooper Basin, the drilling success at Odin-2 was the operational highlight of Vintage’s June quarter.
A short distance away in South Australian Cooper Basin permit PRL 211, Vintage is also planning to lift production at its Odin-1 well.
The production optimisation program for Odin-1 is to be conducted during the same time as the Odin-2 completion operations in the September quarter.
Work to be conducted includes production logging and perforation of the Patchawarra formation for gas production.
The Odin-1 workover program is now expected to commence in August, after adverse weather conditions necessitated a delay.
Increased output
“The highlight of the quarter was the drilling and logging of Odin-2, which successfully appraised the eastern flank of the Odin gas field,” managing director Neil Gibbins said.
“Completion and connection, scheduled for the current quarter, will increase our output from the field.”
“We are targeting further increment from production optimisation initiatives at Odin and Vali.”
Production optimisation
The upcoming activities to optimise production from the Vali field will include the reopening of the Vali-2 well in the September quarter, following the actuation of the well’s sliding sleeve to enable gas production from the shallower Toolachee Formation.
In the meantime, Vali-3 remains shut-in as the JV assesses the performance and potential remediation options to improve the producing zone in the Toolachee Formation.
Future options for the well include production from other gas-bearing zones, such as the Patchawarra Formation.
Capital raising
Vintage also achieved corporate success during the June quarter with a retail entitlement offer raising $5.8 million.
The retail entitlement offer, which followed an institutional placement and accelerated non-renounceable offer, was part of an $8m raising to fund appraisal drilling of the Odin gas field.
Both were priced at $0.01 per share.
The institutional element was completed prior to the commencement of the quarter, with the consequent issue of 217 million shares and receipt of proceeds of $2.17m occurring in April.
Vintage closed the quarter with cash and cash equivalents of $7.67m, compared with $3.04m when it began.