Metgasco says Vali-3 result points to big gas payout
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Metgasco’s belief that there is more gas than previously estimated at the Odin/Vali fields has been validated after wireline logging of Vali-3 returned 178m of net pay.
Analysis of the wireline logs by the operator indicated that the well had intersected 101m of conventional net gas pay (porosity equal to or greater than 8%) and 64m of unconventional low permeability net gas pay(porosities ranging from 6% to 8%) within the Patchawarra formation and a further 13m of net gas pay in the deeper Tirrawarra Sandstone.
Metgasco (ASX:MEL) noted that in comparison, the Vali-2 well had also hit 101m of conventional gas pay in the Patchawarra but just 16m of unconventional net gas pay.
Unconventional gas pay will likely require well stimulation to flow gas.
The Vintage Energy (ASX:VEN) led joint venture now has three cased wells in the Vali Field available for future production.
Once all data has been reviewed, it will be sent to ERC Equipoise to update the reserves certification, which is expected before the end of September.
Managing director Ken Aitken said that the company’s view that there is significantly more gas than previously estimated within the Odin/Vali fields has been strengthened by net gas pay greatly exceeding expectations at both Vali-3 and Odin-1 wells.
He added that once the updated reserve is available, joint venture approval to commercialise the Vali/Odin gas production hub later this year is highly likely.
“The joint venture is well advanced in progressing both gas pre-sales and infrastructure financing to this objective,” he noted.
On 1 December CY20, prior to the drilling of Vali-2 and 3 , ERCE independently assessed that the Vali field held gross proved and probable Reserves of 33 PJof gas (8.3PJ net to Metgasco).
Metgasco and its partners have already received approval from the Australian Competition & Consumer Commission for joint marketing of the gas.
The joint venture will also consider the potential to connect Odin-1 to the planned Vali production hub.
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.