Vintage Energy restores Odin gas production as metering issue resolved

Vintage Energy (ASX: VEN) has solved the mystery that has been impacting production numbers at its Odin gas field in Central Australia.

The company became concerned after data from the two-well operation indicated lower-than-expected gas production.

However, on-site analysis and investigation by specialist technicians has now determined that the inaccurate production figures were being caused by scale formation in metering equipment.

Within expected ranges

The new assessment has found that water and gas production were actually within expected ranges.

Vintage is now moving quickly to rectify the metering issue.

The Odin field in the inland Cooper Basin is a key component of Vintage’s plan to provide a new gas supply to the energy-hungry eastern states.

That plan hit a major milestone in October with the recent start-up of production at the Odin-2 well.

Production decline

However, it was soon noted that production figures from the two wells were declining much earlier than expected.

In late October, the dual well-field was reported to be producing raw gas at a rate of 5.3 million standard cubic feet per day (MMscf/d), a significant increase from the rate of 1.4MMscf/d prior to the connection of Odin-2 and production optimisation work on Odin-1.

At the same time, the company also noted a reduction in the gas flow rate from the 5.8MMscf/d initially recorded, along with rising fluid production believed to be primarily sourced from Odin-1.

Flow metering data indicated the change in production rates from the field was primarily attributable to a lower contribution from Odin-2.

Gas reserves

Vintage’s net 2P reserves at Odin are estimated to be 4 million barrels of oil equivalent (MMboe), including 22.4 petajoules of sales gas and ethane.

The company’s net proved reserves jumped 55% to 6.3MMboe, largely due to the conversion of contingent resources to reserves attributable to Odin.

Gas produced from Odin is being supplied to Pelican Point Power Limited under the long-term contract for supply from the field.