Metgasco announces spudding of Vali-3 appraisal well

Metgasco has announced that Vali-3 appraisal well at its Vali joint venture in the Cooper Basin has been spudded.

Metgasco (ASX:MEL) owns a 25% share in the Vali field alongside Vintage Energy (ASX:VEN, 50%) and privately owned Bridgeport Cooper Basin (25%).

Today’s news comes on the back of recent results from the Vali-2 well, where wireline logs confirmed intersections of 150m of net gas pay, primarily in the Toolachee and Patchawarra formations – almost doubling the expectations of 80m of net pay interpreted from the Vali-1 ST1 well.

The results gleaned from the appraisal well at Vali-3 will allow the JV partners to perform an independent reserve assessment on the Vali field.

The project currently has independently certified gross proved and probable(2P) recoverable reserves of around 33.2 Peta-Joules of gas – upside reservoir potential is anticipated due to the positive Vali-2 logging results including gas being recovered in a wireline sampling tool in the Toolachee reservoir

Vali-3 is the last well in the highly successful 2021 Cooper Eromanga basin drilling program.Vali-3 is expected to conclude in approximately 3 weeks.

Broader gas vision

Alongside recent success at the Odin-1 well in the nearby PRL 211 licence in South Australia, where extensive gas shows were detected in sandstones, the recent results from Vali-2 increased Metgasco’s confidence in developing a substantial Cooper Basin gas production hub.

The JV will have its eyes on Vali-3, with development approval expected in the third quarter and commercialisation targeted in the first half of 2022.

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.