Vintage Energy Ltd (Vintage, ASX: VEN) is pleased to advise that the ATP 2021 Farm-in Agreement with Metgasco Ltd (Metgasco, ASX: MEL), including the Joint Operating Agreement (“JOA”), has been executed on terms as per the binding Heads of Agreement signed on 22 May 2019. Vintage is initially project managing the planning and drilling of the first well in the joint venture program, with the transfer of the 50% interest in the permit and operatorship to take place once Ministerial approval has been received. Vintage has committed to the following expenditure milestones:
• 65% of the cost of the first well (up to a gross cost of AU$5.3 million); and
• Reimbursement of 65% of past exploration costs ( $527,800 net) or carry Metgasco for their first $527,800 of exploration costs.
Vintage will also fund up to $70,000 of 2D and 3D seismic reprocessing to better define exploration leads in the permit.
ATP 2021 is a 370km2 permit located on the Queensland side of the Cooper/Eromanga Basins. Within 20 kilometres of the permit boundary are oil and gas fields, with associated pipelines and facilities, that have produced over 600 Bcf of gas and 11 MMbbl of oil. The permit is partially covered by 2D and 3D seismic, with three main Permian gas prospects and several Jurassic oil prospects and leads already identified. Best endeavours will be made to drill the first well, Vali-1 in 2019. The target sections will be the Permian gas reservoirs that have historically been the main producing zones in the Cooper/Eromanga Basins.
Vintage Managing Director, Neil Gibbins, believes the ATP 2021 permit is an excellent fit with the company’s growing portfolio of assets. “The execution of the ATP 2021 farm-in adds a key permit to the Vintage portfolio and will see us operating again in a region in which we have a great deal of expertise. We have hand selected a technical team with proven capability in operating prospective permits such as this at the highest level. The permit has been targeted for its high level of prospectivity and close proximity to infrastructure, which will allow us to fast track commercialisation should we be successful with our upcoming drilling program.”