Odin-1’s ascension into gas production is all but certain
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Metgasco and its partners have reason to be pleased with the Odin-1 gas exploration well continuing to meet all objectives to date.
Following on the successful flow testing, which delivered gas at a stable rate of 6.5 million standard cubic feet per day, multi-rate memory production logs have now confirmed that both the perforated Epsilon and Toolachee formations had contributed to the gas flow.
Odin-1 in the Cooper Basin, South Australia, is currently shut-in, with downhole pressure gauges installed to record pressure build-up over a four-day period.
Metgasco (ASX:MEL), which has a 21.25% stake in the field, added that all of the production logging, surface and downhole pressure and sampling data collected will be assessed and incorporated into a commercialisation plan for the asset.
This will include an estimate into the number of wells required to efficiently produce gas and maximise returns from the Odin Field.
“The successful test program on Odin-1 has delivered a result above expectations and has confirmed the conventional gas flow potential in the Toolachee and Epsilon reservoirs and deferring the need to fracture stimulate the multiple gas bearing sandstones in the Patchawarra zone,” managing director Ken Aitken said.
“The confirmation from the MPLT that all zones perforated contributed to gas production is an excellent outcome.
“Metgasco looks forward to working with the JV to convert the contingent resource to reserves by agreeing a commercialisation plan for the Odin field and bringing the field into production in the second half of CY22.”
Subject to JV approval, the next step will likely be the completion of Odin-1 in conjunction with the completion of the nearby Vali wells.
In May this year Odin-1 intersected 172.5m of net gas pay and was assessed to host a best estimate gross contingent 2C resource of 36.4 billion cubic feet of gas in the Toolachee, Epsilon, Patchawarra and Tirrawarra formations.
Odin-1’s strong flow performance is a good indicator for potential plans to develop the Odin-1 field via the Vali field pipeline which will be installed nearby (see map below)
This joint development will supply gas into the East Coast market, which is widely expected to be in deficit sooner rather than later.
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.