Vintage Energy celebrates watershed March quarter with maiden production from Vali gas field

Vintage Energy (ASX: VEN) heralded a “milestone” March quarter (Q3 FY2023), which saw it transition from gas explorer to producer at its Vali field in the Cooper Basin.

Gas production from the Vali-1 well came online in February, with the Vali-3 well operational by the end of the quarter.

During the period, 0.48 petajoules equivalent of gas was produced, with 0.045PJ sold for $359,580.

“This was a milestone quarter for Vintage and our shareholders as the company recorded its first production and sales,” Vintage managing director Neil Gibbins said.

“The timing of start-up and well production meant the volumes reported in this first report are modest and will grow in the coming periods.”

Vintage operates the Vali field through its 50% interest, while joint venture partners Metgasco (ASX: MEL) and Bridgeport each retain a 25% stake.

At the end of the quarter, Vintage’s share of the gas supplied from the field was 45.29 terajoules.

AGL contract

Gas from the field is being sold to AGL under a long-term contract secured in 2022, which will see it purchase between 9PJ and 16PJ through to the end of 2026.

Under the deal, AGL prepaid $15 million to the joint venture in June last year, which helped fund development of the field.

The revenue reported in Vintage’s Q3 comes from both new sales, and those which have been pre-paid.

Odin gas field

Vali lies within permit ATP 2021 in Queensland and is close to the South Australian border.

It is also near the nearby Odin gas field, which is owned under the same joint venture conditions, and spans the South Australian and Queensland border.

Odin has 39.7PJ in gross 2C contingent gas resources and the joint venture is accelerating connection of the field to the east coast market.

Mr Gibbins said customer interest in Odin during Q3 FY2023 has been “exceptional”.

“The appetite for securing new gas supply is keen. We look forward to translating this into a new supply agreement to our contract portfolio,” he added.

Other assets

While advancing its flagship Vali and Odin gas fields, Vintage also maintained its other assets across Australia.

In the period, Vintage continued engagement with participants in industrial gas and infrastructure sectors.

Engagement involved identifying a pathway to commercialise the Nangwarry gas field in the Otway Basin and is ongoing.

Vintage owns 50% of the field and believes it has potential to provide stable and reliable raw gas for production of food or industrial grade carbon dioxide.

At PEP 171 in the onshore Otway Basin, Vintage has a 25% interest. Planning is progressing for a 3D seismic survey.

In the Galilee Basin, Vintage holds 30% of several permits and is reviewing available data.