On 25 January 2019, Vintage Energy Ltd (Vintage, ASX: VEN) received Ministerial consent, the final condition precedent of the Sale and Purchase Agreement between Vintage and subsidiaries of Beach Energy Ltd (Beach) for the acquisition by Vintage of EP 126 in the Bonaparte Basin, Northern Territory. The transaction was successfully completed on 31 January, transferring the title, operatorship and 100% working interest in EP 126 to Vintage. Vintage is now looking forward to working with the Department of Primary Industries and Resources (DPIR), the traditional landowners and all other stakeholders in relation to this prospective tenement.
This is a low-cost entry for Vintage into a sizeable 6,700km2 permit that has exploration potential in multiple play types. Several wells have already flowed gas across the onshore Bonaparte Basin with oil shows in wells and surface bitumen seeps also identified in the Basin and within the permit.
Vintage has already undertaken initial evaluation work. Processing and modelling of EP 126 airborne geophysical data has been completed and calibrated with data from the Cullen-1 well, which was drilled by Beach in 2014. Strong gas shows were encountered in Cullen-1 over a thick carbonate section, which is interpreted to exhibit natural fractures. As a result, the well was cased and is available for future testing. The geophysical modelling results are being incorporated into a geological model for the area which, along with information from any future testing of Cullen-1, will guide the forward exploration program.
Vintage has commenced preparing the requisite regulatory requirements to operate and undertake on-ground activities in the permit. An Environmental Management Plan has been submitted to DPIR as part of this process. Flow testing Cullen-1 is planned to be the first on-ground activity which will investigate the possibility of commercial gas flows from the well. Any encouragement from this testing will likely lead to seismic acquisition and further drilling.