As operator for ATP 2021, Vintage Energy Ltd (“Vintage”, ASX: VEN) is pleased to announce it has signed a Letter of Intent with Schlumberger to use their SLR-185 rig to drill Vali-1, which is expected to spud later this calendar year. 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 Tough, with over 600 Bcf of gas produced from fields within a 15 to 40 kilometre radius of the proposed Vali-1.
The Vali structure is identified on the 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.
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 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.