Join our daily newsletter At The Bell to receive exclusive market insights
- Metgasco (MEL) and its joint venture (JV) partner Vintage Energy (VEN) complete the first of four phases to bring the Vali gas field into production
- The fracture stimulation campaign wrapped up last month with the well completion campaign now underway across the Vali wells and nearby Odin gas discovery
- The JV partners will then commence the construction and installation of the pipeline and facilities before commissioning begins in October
- MEL shares are up 4.35 per cent to trade at 2.4 cents and VEN shares are trading 1.23 per cent higher at 8.2 cents at 3:58 pm AEST
Metgasco (MEL) and its joint venture (JV) partner Vintage Energy (VEN) have completed the first of four operational phases to bring the Vali gas field into production.
The ATP 2021 JV are focused on bringing the Vali gas field, located in Queensland, into production to provide a new source of gas for Australia’s eastern states.
Last month, the companies completed a fracture stimulation campaign at the Vali-2 and Vali-3 wells. This campaign targeted the gas-bearing Patchawarra Formation across multiple zones in both wells.
The JV parties have now begun the second phase which is a well completion campaign. A rig has arrived at the Vali-1 ST1 well site and the campaign will involve the Vali-1 ST1, Vali-2 and Vali-3 wells, as well as the nearby Odin gas discovery well in PRL 211.
The well completion campaign is expected to be completed at the end of July.
Following this, the companies will initiate the construction phase which will include installation of dual 13-kilometre pipes to connect the Vali field to the Beckler Field in South Australia.
On behalf of the JV, Vintage Energy secured an agreement with Global Engineering and Construction as the contractor for the pipeline and facilities construction phase.
Installing the pipeline is expected to begin in August and take around five weeks before the facilities construction begins in September.
The companies said construction will be conducted in phases based on the delivery dates for equipment and materials. The Vali-1 ST1 well and the metering and tie-in facilities will be prioritised.
Later on, the Vali-1 ST1 well will be commissioned as well as the facilities and pipeline in October, with first gas production to occur during this period.
The remaining wells will follow in the commissioning process, which is expected to extend into November as the Vali-2 and Vali-3 lease facilities are completed.
The companies have already secured a gas supply agreement with AGL (AGL) to supply up to 16 petajoules of gas from the Vali field. AGL has made the final $5 million tranche prepayment under the agreement.
MEL shares were up 4.35 per cent to trade at 2.4 cents and VEN shares were trading 1.23 per cent higher at 8.2 cents at 3:58 pm AEST.
