Vintage Energy and Sabre join forces in Cooper Basin exploration license
Vintage Energy’s (ASX: VEN) plans to expand its Cooper Basin activities have accelerated with the signing of a farmout agreement with Sabre Energy for a 50% interest in the PEL 679 exploration licence in South Australia’s Cooper Basin.
Vintage, which currently has gas production from the Odin and Vali fields in the area, will retain the remaining 50% interest in the licence.
Sabre will fund 100% of a 150 square kilometre 3D seismic survey and pay Vintage $200,000 as reimbursement of its share of costs incurred to the time the permit is granted to obtain its interest.
Good oil neighbourhood
Comprising a total area of 393 sq km, PELA 679 is located on the western flank of the Cooper Basin, south-west of the Worrior field that has produced in excess of 4.5 million barrels of oil.
Vintage has identified three Jurassic four-way closures and one Permian Patchawarra formation stratigraphic play from the sparse 2D seismic survey it has mapped to date.
This morphology is considered analogous to Beach Energy’s (ASX: BPT) Western Flank oil fields.
“Sabre has an experienced and proven team [and] we look forward to working with them,” Vintage managing director Neil Gibbins said.
“PELA 679 is highly prospective for oil in particular and we anticipate their contribution in addressing the potential of PEL 679 will be both collaborative and valuable.”
Sabre Energy chair Allan Bougoure said the opportunity in PELA 679 acreage provides an exciting entry into oil exploration for Sabre to build the company’s portfolio.
Attractive area
Sabre’s managing director Regie Estabillo said the PELA 679 permit area is highly attractive.
“This opportunity represents near-field oil exploration allowing for short turnaround times to commercialisation.”
“PELA 679 lies within the proven oil fairway of the Cooper/Eromanga Basin as defined by DEM and is analogous to the prolific Western Flank oil fields.”
“This is an exciting addition to Sabre’s portfolio.”
Vintage was awarded the licence in the 2019 SA gazettal round.
The company is currently in negotiations with native title holders the Dieri Aboriginal Corporation RNTBC.