Vintage Energy in race to get Vali gas to market before year end

Vintage Energy (ASX: VEN) continues to be focused on getting gas to market from its 50%-owned and operated Vali field in Queensland’s Cooper Basin to meet increasing demand from customers along the nation’s east coast.

In its latest quarterly report, the company said it was also working with the same partners (Bridgeport Energy (25%) and Metgasco (ASX: MEL) 25%) at the PRL 211 permit to bring the Odin gas project in South Australia’s Cooper Basin on line.

Odin is mapped to extend into licence ATP 2021 where the Vali gas field is being prepared to commence supply to AGL Energy (ASX: AGL).

Vali siteworks

During the period, siteworks commenced at Vali for the pipeline and facilities construction phase and included the clearing and pegging of routes, trenching within the licence area and facilities pre-fabrication.

The phase comprises installation of gas gathering, separation, metering and cooling infrastructure, as well as dual 13-kilometre pipes connecting the Vali gas field to the Moomba gas gathering system in South Australia.

Work commenced during the quarter with the pre-fabrication of production skids.

Siteworks for pipeline installation started later than planned due to the ongoing impact of skilled trade shortages on fabrication timelines and contractor crew availability.

Vintage has since revised its project timelines, with mechanical handover expected in early December after which time commissioning will commence.

First gas is now earmarked for December, compared to the previous scheduled date of October.

Odin progress

The Odin-1 well was completed as a gas producer during the quarter.

In July, the PRL 211 partners resolved to pursue commercialisation of the Odin gas field through connection of Odin-1 to Vali at the earliest opportunity.

A concept engineering study to evaluate connection options was completed subsequent to the end of the quarter and the partners are yet to select a preferred option to take to front-end engineering and design.

Successful completion of the FEED stage will position the joint venture for a commitment decision on the connection of Odin.

Cash and equivalents

Vintage reported cash and cash equivalents at end September of $10.2 million, compared with $18.25 million for the previous quarter.

Cash movements during the period included capital expenditure of $5.89 million (principally for work on the Vali field) and expenditure of $2.16 million on operating activities, including a $750,000 GST payment on the company’s share of pre-payment made by AGL relating to the Vali gas sales agreement.

Vintage finished the quarter with $200,000 net cash at hand.