Vintage Energy (ASX: VEN) is rejoicing in news that the interpreted net pay of the second well of its Vali gas field in Queensland has exceeded pre-drill expectations while a third well is lined up to spud in the coming days.
The Vali-2 well was drilled to a total depth of 3,240m and cased for production with the gas explorer last month confirming the presence of gas in the Toolachee and Patchawarra formations.
Vintage today announced wireline logging and MDT results have interpreted 150m of net gas pay in the Toolachee and Patchawarra formations and the Tirrawarra sandstone – greatly exceeding the 80m of net gas pay interpreted in the earlier Vali-1 ST1 well.
These better-than-expected pay results indicate reserve upside potential for the Vali field and an independent reserve assessment is planned once the Vali-3 appraisal well has been drilled.
A drill rig is currently being mobilised to the Vali-3 well site after being held up for three days by heavy rain in the local area. The well is expected to spud over the coming days and take about three weeks to drill.
Gas pay interpretation
According to the data interpretation, Vali-2 has 24m of stacked net gas pay in the Toolachee formation, with an 8% porosity cut off, which is distributed between three thick sandstone packages and five thinner ones.
Analysis of a gas sample indicated the Toolachee gas has a higher percentage of hydrocarbons at 82% (75% methane, 4% ethane, 3% other hydrocarbons) and 18% inert gases, compared with the Patchawarra gas in Vali-1 ST1, which has around 76% hydrocarbons and 24% inert gases.
Vintage said the results indicated the Toolachee reservoir could flow without the need for fracture stimulation.
The Patchawarra formation is estimated to have 117m of conventional and low permeability net gas pay, with a 6% porosity cut off (compared to 80m in Vali-1ST1 with a 6% porosity cut off), that is distributed over 18 sandstone packages, with the Tirrawarra sandstone having 9m of conventional and low permeability net gas pay (2m in Vali-1 ST1), both of which had a 6% porosity cut off.
Vintage said production from these formations will likely be optimised by fracture stimulation.
The company operates the Vali field with a 50% interest while project partners Metgasco (ASX: MEL) and private company Bridgeport Cooper Basin each hold 25% stakes.
Prior to drilling Vali-2, the field was independently certified to host 2P (best estimate) gross reserves of 30.3 billion cubic feet of gas, or 33.2 petajoules.