Vintage Energy (ASX: VEN) is evaluating its options for its 50%-owned Nangwarry-1 carbon dioxide well within the Otway Basin once it has been proven commercial, while it gears up to drill in the Cooper Basin.
The company has set down hole gauges at 2,919m, which will record pressure data and provide an updated volumetric estimate of the Nangwarry reservoir.
Data from the gauges will be analysed over the coming weeks.
At present, the current gross recoverable estimates for Nangwarry-1 carbon dioxide are 7.85 billion cubic feet (low), 25.1Bcf (best), and 82.1Bcf (high).
With high demand for a consistent supply of food grade carbon dioxide in Australia, Vintage is considering its options for when the project has been proven commercial.
These include Vintage and partner Otway Energy selling off a stake in the project, introducing a new joint venture partner, a possible tolling arrangement with an infrastructure provider, or debt funding of the purification plant, and long-term carbon dioxide offtake contracts.
Over in the Cooper Basin, Vintage owns 50% of ATP 2021 and is operator. Drilling is about to begin at Vali-2 in the coming days and is expected to take three weeks to reach the planned depth.
The strategy behind Vali-2 is to appraise the gas accumulation identified in the Patchawarra Formation that had been discovered in Vali-1 ST1.
This well will also assess the potential for gas at a crestal location in the Toolachee Formation four-way dip closure that wasn’t tested in Vali-1 ST1.
Vintage hopes that Vali-2, along with other targets in the area including Kinta and Odin, could underpin a gas production hub in the Vali field.
If Vali-2 and the targets are successful, Vintage noted it would have flowline infrastructure feed from the reservoirs into Vali with gas then transported to market.
Vintage plans to move the rig to drill Odin-1 once Vali-2 has been completed.
“We are very much looking forward to the outcomes of the upcoming high impact drilling program in the Cooper Basin and analysis of data from the successful Nangwarry-1 testing program,” Vintage managing director Neil Gibbins said.
“All this activity and upcoming news flow will forge a clear path in terms of our future plans, especially with regard to further drilling, completions, and potential development of these exciting projects,” he added.