Vintage Energy’s gas development strategy gathers momentum

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By Colin Hay - 
Vintage Energy ASX VEN 2023 gas development strategy Odin Vali

Vintage Energy (ASX: VEN) achieved a number of significant milestones in the September quarter as it continues to grow its strategy of fast-tracking gas supply to the energy hungry Australian east coast market.

The key highlight for the recently ended quarter was the successful start-up of production from the Odin field, providing the company with its second gas revenue avenue.

Odin is now supplying gas to Pelican Point Power under an initial contract announced earlier this year.

During the quarter, Vintage was also successful in updating that deal with the successful negotiation and signing of an additional gas sales agreement for supply from the field for the 2025 and 2026 calendar years.

The additional gas sales agreement will also supply the Pelican Point power station, a 497 MW combined cycle gas power plant in South Australia.

The plant is regarded as a critical infrastructure asset for energy security and system stability in South Australia.

Odin an outstanding result

“The outstanding feature of the past quarter was the start of appraisal production from Odin, our second gas field, on-schedule, with initial flow rates slightly higher than our expectations and without a lost time injury,” said Vintage’s managing director Neil Gibbins.

“Odin is the next step in our appraisal by production program and the well has continued to perform solidly. We expect the Odin supply contract to step up revenue generation from our Cooper Basin gas operations. The work done on Vali-2 has given clarity on its downhole performance and a plan for establishment of gas flow from the well later in the current quarter.”

Planning is now underway for the drilling of two appraisal wells on the Odin gas field, one on the eastern flank of the field in Queensland and the other on the western side, in South Australia.

Revenue jumps by 57.8%

Odin joined Vintage’s initial gas development Vali in supplying gas to the east coast, helping to lift the company’s sales revenue by 57.8% to $0.92 million.

Vintage’s share of production for the September quarter was 0.10 petajoules equivalent, 25% higher than the June quarter.

The Odin gas field contributed production for 9.8 days after coming online 14 September.

The Vali gas field was online for 89.8 days during the quarter, with 2.1 days offline due to third party downstream outages.

Mr Gibbins said that based on advice from the downstream operator, approximately 26 days offline are anticipated in the December quarter due to scheduled outages.

Vali treatment work continues

At the Vali field, Vintage is currently only receiving production from one of three cased wells which have been completed and connected to the Moomba gas gathering network for supply to the eastern Australia domestic energy market.

Production is currently only being sourced from Vali-1 and the company is now focussed on bringing the Vali-2 and Vali-3 wells back into production.

The two wells have been shut-in of late due to fluid in the well bores and Vintage has conducted a number of tests to try and alleviate the issue.

The Vali field joint venture recently approved a remedial plan to isolate the fluid-producing zones by plugging the well above these zones so the upper, predominantly gas-producing, zones can flow unimpeded.

It is expected this remedial action will be undertaken in November and initiation of gas production attempted thereafter.