Operations Update

Tuesday, December 10, 2019

Vintage Energy Ltd (“Vintage”, ASX: VEN) is pleased to provide an update on its active operating campaign in the onshore Otway Basin and the Galilee Basin.

Otway Basin (PEL 155, Vintage 50%)

The operator of the Otway Basin Joint Venture, Otway Energy Pty Ltd, has advised that the Nangwarry-1 well is making good progress and at 6:00am today was drilling a 12¼“ hole in the Eumeralla Formation at 952 metres measured depth. Total depth (“TD”) of the well is estimated at 4,350 metres, with drilling and logging operations expected to take approximately 45 days. Should the logging results provide evidence of gas within the target reservoirs, Nangwarry-1 will be flow-tested shortly after the completion of drilling and logging.

The joint venture received a South Australian Government PACE gas grant of $4.95 million which will be used to partly fund the drilling Nangwarry-1. The prospect is a three-way dip fault dependent trap in the Pretty Hill and Sawpit sandstones of the Pretty Hill Formation, defined on 3D seismic. The Pretty Hill target is considered analogous to the nearby Beach Energy Ltd (“Beach”) owned Katnook, Haselgrove and Ladbroke Grove fields, which have produced substantial quantities of gas since discovery. The Sawpit sandstone target is a direct analogue to Beach’s recent Haselgrove-3 ST1 discovery which flowed gas at 25MMscfd on test.

The Nangwarry prospect has a Best Estimate Gross Prospective Resource of 57 Bcf (28.5 Bcf net)1. The prospect has a chance of success of 38% and a high chance of development, with the potential to expedite commercialisation of any discovered gas due to the proximity to infrastructure that services local customers.

Galilee Basin (ATPs 743, 744, 1015 (“Deeps”), Vintage 30%)

The operator of the Galilee Basin Deeps Joint Venture, Comet Ridge Ltd (“Comet”, ASX: COI), has advised that the stimulation spread has started to arrive onsite at Albany-2 for a three stage stimulation program. It is anticipated that stimulation of the well will commence toward the end of this week. Once completed the spread will move to Albany-1 ST1 where a four stage stimulation program will be undertaken.

Following stimulation, a workover rig will run completions on both wells in early January. The operator has sourced completion equipment that would allow, dependent on stimulation and clean up results, isolation of individual zones so that flow contributions from each zone could be assessed. This could be important in refining the targeting of future drilling and stimulation programs.

Flow testing of the wells is anticipated to commence mid-January and expected to take two to four weeks. Initially stimulation fluid will be returned up the well bore. Once the stimulation fluid reduces a separator will be installed, which will allow for the gas flow to be isolated and the rate to be measured. Once the flow rate has stabilised it will be tested for content, with the rate to be recorded over a period long enough to provide an indication of the commercial capability of the reservoir.

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Vintage Energy

Vintage Energy Ltd has been established to acquire, explore and develop energy assets principally within, but not limited to, Australia, to take advantage of a generally favourable energy pricing outlook.

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