3 March 2020
EXPERT REVIEW INCREASES VALI RESOURCES
- Gross 2C Contingent Resource of 37.7 Bcf (9.4 Bcf net working interest) independently certified and booked
- Resource estimate is 7% higher than pre-drill 2U Best Estimate
- Discovery close to infrastructure
- Marketing discussions commenced
- Testing and development plans being advanced
Metgasco Ltd (ASX: MEL) (“Metgasco” or the “Company’’) is pleased to announce its first Cooper Basin 2C Contingent gas resource booking less than 9 months after farming out 50% and operatorship of ATP2021 to Vintage Energy (ASX:VEN) and a further 25% to Bridgeport (Cooper Basin) Pty Ltd 3 months later. The Vali-1 ST1 exploration well (see map below) reached TD in January 2020 discovering gas in the Patchawarra formation which was the primary target. An independently certified net 2C contingent gas resource of 9.4 Bcf has been booked for the Vali gas discovery.
ERC Equipoise Pte Ltd (“ERCE”) has independently certified 37.7 Bcf of gross 2C Contingent Resources in the Patchawarra Formation of the Vali gas field located in the Southern Flank (ATP 2021) of the Cooper Basin in southwest Queensland. Metgasco has a 25% share in ATP2021 and accordingly a net 2C Contingent Resource of 9.4 Bcf. The Vali-1 ST1 operations were conducted by the Vintage management team and its contractors with no safety or environmental incidents. The well discovered approximately 80 metres of net gas pay in a well-defined four-way structural closure in the Patchawarra Formation.
The joint venture is planning to stimulate and flow test the Patchawarra reservoir in Q2 CY2020 to gain further information on volumes and flow rates.
As this discovery is in the well-developed Cooper Basin, close to existing infrastructure and with multiple potential customers, operator Vintage has estimated a chance of development of 85%, with which ERCE has agreed. The contingent resources are sub-classified under the project maturity sub-class as described in the SPE Petroleum Resources Management System as “Development Unclarified” by ERCE and Vintage. The key contingencies are a final investment decision on development, committing to a Gas Sales Agreement and any other necessary commercial arrangements plus obtaining the usual regulatory approvals for production.
ERCE is an independent consultancy specialising in petroleum reservoir evaluation. Except for the provision of professional services on a fee basis, ERCE has no commercial arrangement with any other person or company involved in the interests that are the subject of this Contingent Resources evaluation.
The work has been supervised by Mr Adam Becis, Principal Reservoir Engineer of ERCE’s Asia Pacific office with over 14 years of experience. He is a member of the Society of Petroleum Engineers and also a member of the Society of Petroleum Evaluation Engineers.
Ken Aitken, Metgasco Chief Executive Officer, commented:
“This independent study of contingent resources confirms the economic potential of the Vali gas discovery. Metgasco looks forward to a successful stimulation and test program in Q2 CY 2020 and progressing the field development with a sense of urgency to enable future gas production and revenue.
The successful farm-out of ATP2021 and the contingent gas resources associated with the Vali discovery vindicate Metgasco’s partner of choice strategy. Metgasco would like to commend Vintage’s capability as an operator and their experience in delivering a safe and successful project to date”
Philip Amery, Chairman
Phone: +61 08 6245 0060