Vintage Energy Reports Encouraging Progress in Odin-Vali Gas Production Uplift Program

Vintage Energy (ASX: VEN) has reported positive initial outcomes during the second phase of a production uplift program at its Southern Flank gas fields in central Australia.

Following a successful Phase 1 program in early September that mainly focused on removing scale impacting flows levels at the Odin and Vali fields, Phase 2 has sought to initiate production from the Toolachee Formation in the Vali gas field.

Vintage operates and owns a 50% interest in the PRL 211 and ATP 2021 joint ventures, with partners Metgasco (ASX: MEL) and Bridgeport (Cooper Basin) each holding 25%.

Further Investigation Required

At Vali-1, Vintage will need further analysis to determine why perforated intervals in the gas-bearing Toolachee Formation resulted in negligible gas flow.

The company is currently assess what the preferred method, chemical and/or mechanical, to overcome the issue would be.

Venture is aiming to increase output at Vali-1 – which has been a reliable producer of sales gas to AGL Energy (ASX: AGL) from the Patchawarra Formation since coming online in February 2023 – with the addition of production from Toolachee.

Good Underlying Pressure

Initial water and gas production characteristics suggest the good underlying pressure and permeability of the Toolachee Formation are driving the flow of gas at Vali-2.

This is an encouraging sign that higher gas flow is possible at Toolachee if the company sources cleared water that originates from the Patchawarra Formation.

Vintage will continue flowing Vali-2 gas to a separator to assess if the water flow diminishes, and Toolachee gas flow increases to a rate more consistent with the higher quality sands it interpreted in the well.

Dewatering Operations

Preparations are underway to resume dewatering operations at Vali-3, after the well recorded encouraging pressure build-up prior to flow initiation in early September.

After the early success, Vintage subsequently suspended swabbing operations after the presence of produced gas necessitated alternative dewatering methods.

The company is now working with a service company to arrange the installation of a capillary string to effect nitrogen lift of fluid, with the start date dependent on the equipment’s arrival from overseas.

A Step in the Right Direction

Managing director Neil Gibbins said that, while Vintage was yet to establish stable production from the Toolachee Formation, it nevertheless saw some results within the Vali program as encouraging.

“We are pleased to see the onset of some gas flow from the Toolachee Formation, and look forward to operations proceeding as we seek to establish production more consistent with initial post-completion gas flows,” Mr Gibbins said.

Production from the Southern Flank gas fields is continuing ,with raw gas production rates totalling 2.4 million standard cubic feet per day, with Odin contributing approximately 1.9MMscf/d with the balance from Vali-1 and Vali-2.