Metgasco ups stake in the Odin gas field
Metgasco has increased its interest in the Odin gas field in the Cooper Basin, South Australia after the joint venture acquired Beach Energy’s 15% stake in PRL211.
The acquisition, on receiving ministerial approval, takes the company’s stake in the gas field, which was successfully tested late last year, up from 21.25% to 25%.
Besides aligning the joint venture’s interests with those they hold in ATP2021 across the border in Queensland, which will promote efficiencies in planning and optimise field operations, the move also increases Metgasco’s (ASX:MEL) share of gas contingent resources by 0.77 billion cubic feet of gas to 8.77Bcf of gas.
“The Odin-1 discovery and successful test delivered a result above expectations and has confirmed the significant potential of the Odin gas discovery to become Metgasco’s second producing gas field from the ATP2021/PRL211 gas production hub into the lucrative East Coast gas market,” managing director Ken Aitken said.
“Increasing our interest in the Odin field was a highly attractive opportunity for Metgasco.”
The Odin-1 well had flowed gas at a rate of 6.5 million standard cubic feet per day during initial testing.
This exceeded expectations with a production log confirming that gas flowed from the Toolachee and Epsilon conventional reservoirs, delaying the need to fracture stimulate the multiple gas bearing sandstones in the Patchawarra zone.
Development options are currently being reviewed for Odin and one possibility is a tie- in to the pipeline infrastructure to be installed for the Vali field development .
The PRL211 joint venture – led by Vintage Energy (ASX:VEN) – is paying Beach $1m and a further $1.25m in two instalments on achievement of production milestones for the additional 15% stake.
Metgasco’s share of this totals $562,500.
The remaining 25% in PRL211 is held by Bridgeport.
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.