Initial Odin-1 gas flow rates are encouraging for Metgasco

Metgasco has reason to be positive after the Odin-1 exploration well clocked in at a current rate of 7.58 million standard cubic feet of gas per day at a flowing wellhead pressure of 2018 psi during the early phase of testing.

The gas flow rate, which includes 46 barrels of water per day that is interpreted to be water of condensation, is stabilising and follows the successful perforation of five intervals totalling 26.6m in the Toolachee Formation along with 7.5 metres perforated over two intervals in the Epsilon Formation .

About 22% of the gas is comprised of inerts, which is in line with expectations.

Metgasco (ASX:MEL) says that testing of the Toolachee and Epsilon formations in Odin-1 will continue to assess gas deliverability from these key formations, provide reservoir fluid samples to assist with design of well and production facilities, determine contribution from each reservoir, and determine the average reservoir properties. The duration of the well test, including flow, sampling and shut-in periods, is anticipated to be approximately 14 days.

This will help determine the best reservoir to target for initial production, whether that be the Toolachee, Epsilon, Patchawarra, or a combination.

Current testing by operator Vintage Energy (ASX:VEN) will only be carried out on the interpreted conventional pay in the Toolachee and Epilson formations.

Odin-1 had intersected 172.5m of net gas pay and was assessed to host a best estimate contingent resource of 36.4 billion cubic feet of gas in the Toolachee, Epsilon, Patchawarra and Tirrawarra formations.

Vintage owns 42.5% of the joint venture’s Odin Field in the Cooper Basin on which Odin-1 is located, with Metgasco holding a 21.25% share.

This article was developed in collaboration with Metgasco, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.