As operator for ATP 2021, Vintage Energy Ltd (“Vintage”, ASX: VEN) is pleased to announce that on 8 November 2019, a rig contract with Saxon Energy Services Ltd (“Schlumberger Land Rigs”) was signed for the use of the SLR-185 rig to drill Vali-1. The rig is a 1250 HP rig that is capable of drilling to 3,500 metres and is currently working for Senex Energy Ltd (“Senex”). On completion of the Senex program, the rig will relocate to ATP 2021 to drill Vali-1 in mid-December 2019. Safe operating is a key priority of Schlumberger Land Rigs.
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 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) 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 located in the southern part of ATP 2021 in the Queensland Cooper Basin. The Vali prospect is prospective for gas in Permian aged reservoirs, specifically the Patchawarra Formation. The Toolachee Formation is 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.
The Vali structure was identified on the recent 2017 Snowball 3D seismic survey and is approximately three kilometres from Kinta-1, which was drilled in 2005 and intersected gas charged sands in the Patchawarra and Toolachee formations.
As per ASX release on 1 October 2019, the 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 once farm-in commitments are met) based on mapping of the Snowball 3D seismic and incorporating the results of offset wells. The chance of exploration success is estimated to be 34% and the chance of development 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.
