Vintage Energy Ltd (ASX: VEN, “Vintage”) advises that the planning work for the fracture stimulation of the Vali discovery is primarily complete, with the stimulation of Vali-1 ST1 expected to commence in early July 2020. The ATP 2021 joint venture (Vintage 50% and operator, Metgasco Ltd 25% and Bridgeport (Cooper Basin) Pty Ltd 25%) has awarded the Vali-1 ST1 fracture stimulation activities to Condor Energy Services Pty Ltd (“Condor”).
Condor will mobilise to site later this month, subject to them completing their current program, with the stimulation program now finalised by the Joint Venture. It is expected that there will be six stages stimulated in Vali-1 ST1, five in the Patchawarra section and one in the deeper Tirrawarra / Basal Patchawarra section. The gas saturated zones to be fracture stimulated are at depths of between 2,810 metres to 3,140 metres. It is anticipated that fracture stimulation will take approximately a week to complete and, once done, flow testing will commence immediately with potential gas flow rates recorded over a period of up to several weeks. Results will then be assessed and incorporated into the commercialisation plan for the asset.
Following a previously successful casing pressure test, as advised to the ASX on 26 May 2020, the cement bond logging of the Vali-1 ST1 well was successfully completed on 10 May 2020. These two pieces of work have confirmed the wellbore to have the requisite integrity for the next stage of activity. In addition, a baseline temperature log was acquired which will provide important information in assessing the effectiveness of the fracture stimulation stages.
Vintage Managing Director, Neil Gibbins, said “With the majority of the preliminary work now completed for the stimulation and flow testing of the Vali gas discovery, we are looking forward to next month with much anticipation. As I have mentioned previously, the testing of Vali is a crucial, preliminary step in the process to deliver early cashflow through gas production and generating potentially significant value for Vintage shareholders.
“We have worked with Condor Energy on number of wells in the past, and they are a high quality outfit with an excellent safety record. All upcoming operations relating to the Vali discovery are being planned to ensure they are ‘Covid-19’ safe, complying with the Queensland and Federal government guidelines for protecting workers and communities.
“Once the flow testing of Vali is complete, and subject to a successful economic outcome, we will look to have the well connected to the gas infrastructure located close to the well. To this end we have already engaged with GPA Engineering and are in discussions with Santos to ensure this process can be done as expeditiously as possible.”