Metgasco is on the hunt for partner after finding 2 new gas prospects

Oil and gas explorer Metgasco has uncovered two new gas prospects in Queensland and is now on the hunt for a partner.

Sydney-based Metgasco (ASX:MEL) has estimated prospective resources for the two prospects, known as “Vali” and “Odin”, within its ATP 2021 block in the Cooper Basin.

The Vali prospect is estimated to have a low estimate of recoverable gas of 18 billion cubic feet (Bcf), a best estimate of 19 Bcf, and a high estimate of 72.9 Bcf.

The Odin prospect, meanwhile, is estimated to have a low estimate of recoverable gas of 2.7 Bcf, a best estimate of 8.7 Bcf, and a high estimate of 27.2 Bcf.

Metgasco says the ATP 2021 block is surrounded by commercial gas fields that produce 600 Bcf within a radius of 20 km.

The block is also located just 5km away from gas pipelines and production infrastructure.

Metgasco (ASX:MEL) shares over the past year.

The company has now initiated a “farm-out” of the project and several parties are reviewing the data room information.

A farm-out is where a company strikes a deal allowing another party to acquire an interest in their project by carrying out exploration work.

“The farm-out process is progressing well and we are confident of securing a credible partner to join Metgasco in an exploration drilling program in the second half of 2019,” executive director Ken Aitken told investors.

Metagasco has been contacted for comment.