Metgasco’s Odin weaves spell with near three-fold growth in gas resource

Metgasco has cranked up gross resources at the Odin gas field in the Cooper Basin from pre-drill mid case Prospective Resource estimate of 12.6 billion cubic feet to a 2C Contingent Resource of 36.4Bcf.

The 190% increase in the gas resource comes after the company and its operating partner drilled the successful Odin-1 exploration well in May this year that intersected 172.5m of net gas pay.

Metgasco (ASX:MEL) notes that the Odin field is likely to be tied into the proposed Vali production hub pipeline.

With its 21.25% stake in PRL 211 and 25% in ATP 2021, the company’s share of the 2C contingent resource stands at 8Bcf.

“The independent certification of a significant increase in the Odin gas field resources is a great outcome and confirms another sizeable gas discovery, circa 7km from the CY2020 Vali field gas discovery,” managing director Ken Aitken said.

“Odin1 has conventional gas flow potential in the Toolachee and Epsilon reservoirs which are under consideration to be tested to assist future appraisal planning and conversion of Contingent Resources to Reserves.

“Excellent results from Odin-1 and the appraisal drilling of Vali-2 & 3 provide confidence that both fields should be producing gas into the high price east coast gas market in CY2022 and delivering significant production revenue to Metgasco for decades.”

He added that the success to date validates the company’s “string of pearls” thesis, indicating that there could be more gas potential within the two licences.

Odin-1

The Odin-1 well was drilled to a total depth of 3,140m and encountered extensive gas shows in sandstones through the primary target Toolachee and Patchawarra formations, as well as a basal sand in the Epsilon Formation.

This led to its subsequent casing as a future gas producer.

Metgasco noted that first production is likely to be sourced from the Toolachee Formation, which due to better reservoir quality, is expected to require only perforation in order to produce at commercial rates.

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.