Vintage Energy Ltd has acquired, subject to final approvals by the South Australian State Government, an additional 25% equity share of South Australian Otway Basin permit area, PEL 155, giving it a 50% share of the highly prospective gas exploration permit.
Vintage and Rawson earlier agreed that Vintage would acquire an additional 25% equity in PEL 155, subject to State Govt approval, provided the joint venture was successful in being granted a Petroleum Accelerated Exploration (PACE) Gas Grant.
The Rawson-Vintage PEL 155 Joint Venture has now executed the PACE Funding Deed and received A$4.95 million from the South Australian Government to support the drilling of the conventional, gas exploration well, Nangwarry-1.
New gas discovered in Nangwarry-1 can be delivered quickly and cost-effectively into the South Australian market utilising existing infrastructure, supporting the South Australian Government’s objectives of increasing competition in the gas market and lowering electricity costs.
Combined with the recent gas discovery at Haselgrove-3 ST1, announced by Beach Energy in the neighbouring licence, success at Nangwarry-1 will extend the proven gas play province in the Penola Trough and help bring new gas resources into production in the south-east region of South Australia.
Vintage Energy managing director, Neil Gibbins, said, "PEL 155 is highly prospective for natural gas. The recent gas discovery immediately north of the permit border enhances the prospects for the planned Nangwarry-1 well which is expected to be drilled later this year. Vintage looks forward to working with Rawson in this joint venture."
Rawson Chairman, Allister Richardson, said, "We are delighted to have Vintage as a 50% partner and with the support of the South Australian Government through the PACE grant we are now moving Nangwarry-1 planning forward in earnest. We are looking to forward to working with Vintage to drill Nangwarry-1".