Metgasco, partners take flight with Vali gas field production work

Metgasco’s operating partner Vintage Energy has started work to bring the Vali gas field in Queensland into production under a sales agreement with AGL Wholesale Gas.

This work involves fracture stimulation of the gas-bearing Patchawarra Formation across multiple zones in the Vali-2 and Vali-3 wells.

Metgasco (ASX:MEL) says this work is expected to take about 42 days to finish and will precede the completion of all three wells – including the Vali-1ST well that has already been fracture stimulated – for production of gas to AGL.

Under the agreement with AGL, the joint venture will supply between 9 petajoules and 16PJ of gas over the 4.5 year contract duration–

Production from the Patchawarra will be combined with gas flows from the productive, conventional Toolachee Formation.

Vali field operator Vintage Energy (ASX:VEN) is currently engaging with contractors for the subsequent well completion campaign and has ordered long-lead items.

Following completion operations, the Vali gas field is to be connected to the nearby Moomba gas gathering network for supply to the eastern Australian domestic gas market.

Engineering of this project is nearing completion and procurement of equipment and materials is well underway.

Gas for the east

The Vali field (Metgasco 25%) was first discovered in 2020 with subsequent appraisal wells resulting in the independent certification of gross101 petajoule proved and probable reserve.

Early production performance is expected to improve the JV’s understanding of the field’s potential and assist in determination of optimal future appraisal and development plans.

Metgasco, Vintage and Bridgeport Cooper Basin, recently increased their stake in the Odin gas field in the PRL211 Licence across the border in South Australia.

Besides aligning the joint venture’s interests with those they hold in ATP2021 (Vali), the move is expected to promote efficiencies in planning and optimising Odin field operations.

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.