Metgasco sets the stage for more gas with Odin-1 success
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Metgasco (ASX:MEL) is now two for two in the Cooper-Eromanga Basin with the Odin-1 exploration well in South Australia to be cased for future gas production.
Odin-1 was drilled to a total depth of 3,140m and encountered extensive gas shows in sandstones throughout the primary target Toolachee and Patchawarra formations, as well as within a basal sand of the secondary Epsilon Formation target.
Wireline logs run by operator Vintage Energy (ASX:VEN) confirmed these shows and recovered gas samples from the Toolachee and Epsilon formations.
Importantly, the gas shows indicate hydrocarbon bearing zones are still discoverable in areas in the Cooper-Eromanga Basin that have been previously been worked over by other companies.
It also follows on the Vali-2 appraisal well in ATP2021 across the state border with Queensland that was also completed for future production earlier this month.
Initial interpretations from Odin-1 will now be combined with pressure and sample data from an MDT survey to quantify pay thickness, column heights and compositions.
“Metgasco believes Odin-1 may well be an important Cooper Basin gas discovery, with further upside connected reservoir potential to be investigated around the Strathmount-1 well,” chief executive officer Ken Aitken said.
“The recovery of a gas sample from a wireline conveyed testing tool in the Toolachee and Epsilon formations indicates conventional production upside potential in the Odin-1 well.
“Metgasco’s decision to farm-in to the PRL 211 licence in late 2019 has been well rewarded by discovering gas in three reservoirs at Odin-1.
“We look forward with increasing confidence towards developing substantial gas production across the PRL 211 and ATP 2021 licences.”
The rig will now case and suspend Odin-1 and then mobilise to drill the Vali-3 appraisal well.
Metgasco and its partners have already secured permission from the Australian Competition & Consumer Commission to jointly market gas from the Vali field.
The PRL211 joint venture also has the option to connect anticipated future production from the Odin Field into the ATP2021 Vali production hub slated for JV development approval in Q3 CY21.
Should Vali-3 prove successful as well, this will give the JV four future gas producers as their base to work with in the Cooper Eromanga Basin.
Metgasco is paying 25 per cent of the Odin-1 well cost to earn a 21.25 per cent stake in PRL211 and has a 25 per cent interest in ATP 2021.
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.