Vintage Energy secures ACCC interim approval to market Vali gas with Metgasco and Bridgeport
Vintage Energy is eyeing first production from its Vali gas discovery and flow-testing the Nangwarry carbon dioxide discovery as early as next year.
Vintage Energy (ASX: VEN) has collared interim Australian Competition and Consumer Commission authorisation to make gas marketing arrangements along with joint venture partners Metgasco (ASX: MEL) and New Hope Corporation’s (ASX: NHC) subsidiary Bridgeport (Cooper Basin).
The ACCC has given the three parties authorisation to begin jointly negotiating and entering into agreements regarding any gas produced from the Vali field in Queensland’s Cooper-Eromanga Basin.
Authorisation also enables the three companies to supply minor quantities of gas from the field until the end of 2021.
Vali gas field
Vintage owns 50% of the Vali field, with Metgasco and Bridgeport each holding 25%.
Once the Vali gas field is fully developed, Vintage anticipates it will supply about 0.5% of Australia’s east coast annual gas demand.
During the December quarter, first reserves were booked for the Vali field. The 2P (proved and probable) reserves cover the Patchawarra formation and total 30.3 billion cubic feet, which equates to about 33.2 petajoules of gas.
Vintage anticipates the actual gas produced from the field will be much greater than the 2P reserve, with potential upside from stacked reservoirs including the Nappamerri Group and Toolachee Formation.
The joint venture has also finished front end engineering design for the proposed Vali-1 ST1 flowline connection. And cultural and environmental surveys are also now complete.
Vintage plans to begin producing from Vali-1 before then end of June.
Other energy assets
As well as Vali, Vintage is advancing its other energy assets.
In the Otway Basin, Vintage owns 50% of PEL 155 where testing of the Nagwarry-1 well is due to begin in February.
Over in Western Australia, Vintage is earning 30% of the Cervantes joint venture in the Perth Basin. The joint venture plans to drill at Cervantes during the first half of this year.
Capital raising to fund exploration and development
During the December quarter, Vintage raised $15.2 million via a capital raising and a non-renounceable entitlement offer.
Investors were offered Vintage shares at $0.06 each, which represented a 14% discount to the company’s previous closing price of $0.07.