Metgasco is gassed up as Vali-2 joins ranks of future producers
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Metgasco can chalk the Vali-2 appraisal well in as a success after wireline logging confirmed that gas is present in the target Patchawarra and Toolachee formations.
Notably, the presence of gas in the Toolachee Formation four-way dip closure is anticipated to increase Vali’s existing gross proved and probable (2P) reserves of 33.2 petajoules as it was not tested in the Vali-1 ST1 well.
Metgasco (ASX:MEL) notes that Vali-2 was similar to Vali-1 ST1 in many ways, such as the appearance of stacked gas pay in the Toolachee and Patchawarra formations.
Chief executive officer Ken Aitken says the confirmation of gas in both primary reservoirs is an excellent outcome and provides further confidence of a potential multi-well development at Vali in the Cooper-Eromanga Basin, Queensland.
“The recovery of a gas sample from a wireline conveyed testing tool in the Toolachee formation indicates conventional production upside potential within the Vali field,” he added.
“The Vali-2 result is a great start to the Cooper Basin drilling campaign this year and we look forward to the drilling of the Odin-1 exploration well, which is expected to spud around the middle of May, testing the highly prospective Odin structure within PRL 211.”
With the addition of Vali-2, the Vali field now has two wells that have been cased and suspended for future production.
Metgasco has a 25 per cent stake in ATP 2021 with operator Vintage Energy (ASX:VEN), which is led by Beach Energy alumni Neil Gibbins and Reg Nelson, holding 50 per cent.
The rig is currently mobilising just across the state border to drill the Odin-1 exploration well in PRL211.
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.
Metgasco noted that the Odin structure has been de-risked by the success at Vali-1 ST1 and Vali-2 and also has the potential for gas in the Toolachee Formation. 2U Best Estimate Unrisked Prospective Resources in Odin have been calculated to be gross 12.6 Bcf or 2.8Bcf net to Metgasco (21.25% interest). Stratigraphically trapped gas outside of mapped closure may provide gas resource upside.
Odin-1 is expected to commence drilling around the middle of May.
It will own 21.25 per cent of PRL211 by paying 25 per cent of the Odin well cost.
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.