Otway Basin | Nangwarry-1 spudded

Monday, December 2, 2019

Vintage Energy Ltd (“Vintage”, ASX: VEN) is pleased to announce that the operator of the Otway Basin joint venture (PEL 155, Vintage 50%), Otway Energy Pty Ltd (“Otway”), has advised that Easternwell Rig 106 spudded the Nangwarry-1 well, located in the onshore Otway Basin, on Sunday 1 December. The planned total depth (TD) of the well is 4,350 metres with drilling and logging operations expected to take approximately 45 days and, if successful, will be tested for gas flow shortly after completion.

The fit for purpose Easternwell Rig 106 is a fully automated 1,500 horse-power drilling rig, specifically designed and capable of drilling to a depth of 5,000 metres. The fully automated capability improves efficiency and safety throughout the drilling process.

The joint venture received a South Australian Government PACE gas grant of $4.95 million which will be used to partly fund the drilling of Nangwarry-1. The prospect is a three-way dip fault dependent trap in the Pretty Hill and Sawpit formations, 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 target is a direct analogue to the recent Haselgrove-3 ST1 discovery (Beach, 100%) which flowed gas at 25MMscfd on test.

The Nangwarry prospect has a best estimate gross prospective resource1 of 57 Bcf (28.5 Bcf net). 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 industry. Nearby infrastructure includes the Katnook gas processing plant (operated and currently being upgraded by Beach) located approximately 10 kilometres to the northwest, and a substantial network of pre-existing pipelines that connect to local industry and the eastern states gas supply network.

The Otway Basin joint venture looks forward to working with the Government of South Australia, local industry and the South East community to progress this exciting conventional gas exploration drilling opportunity.

Vintage Managing Director, Neil Gibbins, said “Vintage is very pleased to see the spudding of Nangwarry-1 with Easternwell Rig 106. The Penola Trough in the onshore Otway Basin has recently been reinvigorated with the drilling of Haselgrove-4 and the more recent Dombey-1 DW1. Nangwarry-1 is part of an extremely busy schedule of activity ahead for Vintage. Should the well be successful, it would extend the proven Pretty Hill Sandstone play province as well as the new Sawpit Sandstone play province. Commercial gas, should it be discovered from the Nangwarry prospect, has the potential to supply much needed gas to local industry in the South East of South Australia, as well as the South Australian market more generally.”

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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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