Vintage Energy Ltd (“Vintage”, ASX: VEN), as operator of the ATP 2021 Joint Venture (Vintage 50%, Metgasco Ltd 25%, Bridgeport (Cooper Basin) Pty Ltd 25%), is pleased to advise that the SLR-185 rig has been released from the Western Flank and is moving to the Vali-1 location. It is anticipated that the Vali-1 well will spud on or around 15 December 2019. The SLR-185 rig is a 1250 HP rig capable of drilling to 3,500 metres, which satisfies the requirements of the Vali-1 well which has a targeted total depth of 3,140 metres.
As announced to the market on 22 May 2019, Vintage will earn a 50% interest in ATP 2021 from Metgasco Ltd through contributing 65% of the cost of Vali-1 (up to a gross cost of $5.3 million), paying for 65% of past exploration costs, and funding up to $70,000 of 2D and 3D reprocessing. Bridgeport (Cooper Basin) Pty Ltd is also earning a 25% interest in ATP 2021 from Metgasco Ltd by contributing to the cost of Vali-1.
The Vali structure is a robust anticlinal closure that is identified on the 2017 Snowball 3D seismic survey. The Vali prospect is prospective for gas in Permian aged reservoirs, specifically the Patchawarra Formation, with the Toolachee Formation being a secondary objective. These reservoirs are proven as producing reservoirs on the southern flank of the Nappamerri Trough, with over 600 Bcf of gas produced from fields within a 15 to 40 kilometre radius of the proposed Vali-1.
2U Best Estimate Unrisked Prospective Resources in Vali have been calculated to be 17.6 Bcf in the Patchawarra Formation net to Vintage (50% interest of 35.1Bcf once farm-in commitments met) based on mapping of the Snowball 3D seismic and incorporating the results of offset wells. Note the secondary target, the Toolachee Formation has a 2U Best Estimate of 1.5 Bcf net to Vintage (50% interest of 3.0 Bcf once farm-in commitments are met). The chance of exploration success is estimated to be 34% for both the Patchawarra and the Toolachee formations and the chance of a commercial discovery is high given the nearby infrastructure and market availability. Note the volumes and risking values stated are those of Vintage as operator of the joint venture.
Vintage Managing Director, Neil Gibbins, said “The Vali-1 prospect is representative of what you often see in the Cooper/Eromanga Basins in terms of highly prospective anticlinal structures. The prospect has the right address, with over 600 Bcf of gas produced in nearby reservoirs with associated infrastructure taking gas to Moomba. Our team is familiar with these types of structural prospects, the subsurface imaging of which has been enhanced by the recently completed and interpreted Snowball 3D seismic. These wells can be drilled in a matter of weeks and are generally fracture stimulated to enhance flow and can be converted quickly to producing wells.”