Vintage Energy Ltd (ASX: VEN, “Vintage”) is pleased to advise that it has made its first Otway Basin recoverable carbon dioxide (“CO2”) booking for the Nangwarry-1 discovery. Employing a method consistent with the June 2018 Society of Engineers Petroleum Resources Management System (“PRMS”) methodology, a gross Best Case of 25.1 Bcf recoverable CO2 has been booked for the Nangwarry discovery, which is held by the PEL 155 Otway Basin Joint Venture (Vintage 50%, and Lakes Oil NL (“Lakes”) 50% and operator).
Managing Director, Neil Gibbins said, “The recoverable gas booking, along with the recently announced MOU with Supagas Pty Ltd, takes us a significant step closer to delivering first CO2 production from a potentially valuable annuity style asset. Once we have flow tested the Nangwarry-1 well, we will look to expeditiously mature these volumes to reserve status.”
Under PRMS, volumes of non-hydrocarbon by-products cannot be included in any Reserves or Resources classification. ERC Equipoise Pte Ltd (“ERCE”) has assessed the sales gas volumes attributable to the Nangwarry-1 discovery using a methodology consistent with that prescribed by the PRMS. ERCE independently assesses a Best Case of 25.1 Bcf gross recoverable CO2 in the top Pretty Hill Sandstone of the Nangwarry CO2 discovery, located in the south east of South Australia (12.6 Bcf net to Vintage). This compares extremely well with other commercial Otway Basin CO2 fields such as Caroline (~15 Bcf), which was in production for approximately 50 years, and Boggy Creek (~14 Bcf).
The Nangwarry-1 well was operated by Lakes and its contractors, with no safety or environmental incidents experienced during drilling. A high-quality CO2 gas column of approximately 90 metres has now been determined from sampling and pressure data, with a further 45 metres subject to confirmation by testing. This is a 25-70 metre increase over the previously advised 65 metre column. Laboratory analyses indicate that around 90% of the gas content is CO2, with the residual being methane. This is an excellent outcome as the methane can be separated from the CO2 and used to power the facility that would process the gas to food grade quality CO2.