Vali-2’s big gas pay is a signpost to commercialisation
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Metgasco and its partners are looking at substantial gas reserve upside at their Vali field after confirming better than expected net gas pay at the Vali-2 well.
Wireline logs confirmed that the Cooper Eromanga Basin well had intersected 150m of net gas pay, primarily in the Toolachee and Patchawarra formations, almost double the 80m of net pay interpreted in the Vali-1 ST1 well.
Notably, analysis of gas samples indicates that Toolachee gas has a higher percentage of hydrocarbons compared to the Patchawarra – 82 per cent compared to 76 per cent respectively.
Data also indicates that the Toolachee might flow gas without the need for well stimulation while gas production from both the Patchawarra and secondary Tirrawarra Sandstone might be optimised by future well stimulation.
Metgasco (ASX:MEL), which holds a 25 per cent interest in Vali-2 and the ATP 2021 permit in Queensland, anticipates that the discovery of gas in the Toolachee will addto the reserves estimates in the Vali field with an independent assessment expected once the Vali-3 appraisal well is drilled.
Vali currently has independently certified gross proved and probable(2P) recoverable reserves of about 33.2 Peta-Joules(PJ) of gas that excludes the Toolachee conventional gas and thicker Patchawarra potential upside identified in the Vali-2 logging results.
“The better than anticipated Vali-2 net-pay results indicate reserve upside potential for the Vali field, which will be independently assessed following the drilling of Vali-3,” chief executive officer Ken Aitken said.
“Metgasco looks forward to the imminent spud of the Vali-3 appraisal well and a safe and successful conclusion to the 2021 Cooper Eromanga basin drilling program.”
Along with the success of the Odin-1 well in South Australia, which encountered extensive gas shows in sandstones throughout the primary target Toolachee and Patchawarra and the secondary Epsilon formations, the larger than expected Vali-2 net gas pay increases the company’s confidence in developing a substantial Cooper Basin gas production hub.
The joint venture expects to make a development approval in the third quarter with commercialisation expected in the first half of 2022.
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.