Metgasco continues gas drilling spree with Odin-1 and Vali-3
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Just a week from suspending the Vali-2 appraisal well as a future gas producer, Metgasco and its partner are already drilling the Odin-1 well.
Odin-1 is being drilled to address a large fault-bounded Patchawarra Formation closure, up dip of Strathmount-1 well that was drilled in 1987 before being plugged and abandoned as a non-commercial discovery.
It is currently at a depth of 1,658m and is expected to reach the Toolachee Formation, the first of the key target zones, this weekend.
Drilling of Odin-1 has also been de-risked by the success of the Vali-2 appraisal well, which intersected gas in the target Patchawarra and Toolachee formations.
It is calculated to host gross 2U Best Estimate Unrisked Prospective Resources of 12.6 billion cubic feet of gas, though stratigraphically trapped gas outside of the mapped closure may provide upside.
Metgasco (ASX:MEL) is paying 25 per cent of the Odin-1 well cost to earn a 21.25 per cent stake in PRL211 within South Australia’s Cooper-Eromanga Basin.
The ATP2021 Joint Venture has approved drilling of the (previously optional) Vali-3 gas appraisal well.
The Vali Field already has Vali-1 ST1, and Vali-2 cased for future production, with Vali-3 also targeting gas in the Patchawarra Formation inside structural closure. It is anticipated that Vali-3 will be drilled around early June, immediately after the Odin-1 drilling is completed.
“The commencement of drilling on Odin-1, and encouraging drilling progress to date, continues the exciting period of operational activity for Metgasco shareholders,” chief executive officer Ken Aitken said.
“A potential gas discovery on the Odin1 prospect will add further gas reserves to the growing gas production hub at the Vali field.
“Confirmation of gas in both primary reservoir objectives of Vali-2 was an excellent outcome for the ATP2021 joint venture and has given the JV confidence to trigger the additional well option on the SLR184 rig contract and approve Vali-3.”
“In the event of gas discoveries on Odin-1 and Vali-3 we could have four gas discoveries behind pipe to allow a rapid commercialisation of this gas hub across two licences.”
The company has a 25 per cent stake in ATP 2021 within the Queensland side of the Cooper-Eromanga Basin.
Metgasco and its partners have also secured approval from the Australian Competition & Consumer Commission to jointly market gas from the Vali field.
This is valid for five years and allows the JV to enter into gas supply agreements for terms of up to 15 years.
Over in Western Australia, the Cervantes joint venture have started the process to search for a suitable rig to drill the Cervantes-1 exploration well.
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.