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ATP2021 Vali Prospect Update

1 October 2019

ATP2021 VALI PROSPECT UPDATE

  • Operator Vintage Energy’s sub-surface work on Vali has significantly increased the prospective resources attributed to the prospect;
  • The 100% increase compared with Metgasco’s November 2018 estimates underscores the prospectivity of ATP2021;
  • A Letter of Intent signed with Schlumberger Rig SLR185 to drill Vali-1;
  • Vali-1 is expected to spud in late 2019.

Metgasco Ltd (ASX:MEL) (Metgasco or the Company) notes Licence operator Vintage Energy Ltd (“Vintage”, ASX: VEN)’s  ASX release of 1/10/19.

Vintage has taken on the role of operator diligently and efficiently progressed operational planning to sign off a LOI for the SLR 185 drilling rig from Schlumberger to secure a late 2019 Spud for Vali-1.  

Vintage’s sub-surface team have also completed an in-depth analysis of sub-surface information and calculated gross (100%) recoverable prospective resources (Patchawarra and Toolachee) of 38.1 Bcf, a substantial increase on earlier estimates. Vintage’s work indicates a 100% increase in prospective resources compared to Metgasco’s prospective resource estimates from November 2018.

This significant increase is due to Vintage mapping a larger structural closure as well as increasing the estimated net pay due to reducing the porosity cut-off, in anticipation of well stimulation on success.

Vali -1 Prospect

Metgasco 2U/ Best Estimate   (100%) – Nov 2018

Vintage 2U/ Best Estimate   (100%)- Sept 2019

Vintage 2U Best Estimate   (25 % net MEL)- Sept 2019

Patchawarra and Toolachee Formations

19 Bcf*

38.1 Bcf**

9.5  Bcf

 

 

 

 

 

 

*Refer Metgasco ASX announcement on 26 Nov 2018   **Refer Vintage ASX announcement on 1 Oct 2019

Vintage also calculate the chance of geological success to be 34% for both the Patchawarra and the Toolachee formations in the Vali-1 prospect and estimate the chance of a commercial discovery to be high given nearby infrastructure and market accessibility.

As announced to the market on 22 May 2019, Metgasco farmed out a 50% interest in ATP2021 to Vintage who will contribute 65% of the cost of Vali-1 (up to a gross cost of $5.3 million), paying for 65% of past exploration costs, and funding up to $70,000 of 2D and 3D reprocessing. 

On 29th August Metgasco farmed out a further 25% of ATP2021 to Bridgeport (Cooper Basin) Ltd (a subsidiary of New Hope Corporation) who will contribute 32.5% of the cost of Vali-1(up to gross cost of $5.3 million) and pay Metgasco’s future exploration costs up to $263,900 net on ATP2021.

These two farm-out deals have achieved a free carry for Metgasco on the Vali prospect. (See Vali-1 Location on ATP2021 Map below)

Contact and further information:

Metgasco welcomes shareholder communication and invites all interested shareholders to make contact at any time.

ENDS

 

 

For more information contact: 

Philip Amery, Executive Chairman

Phone: +61 02 9923 9100

CONTACT US

North Sydney Office
Level 3, 2 Elizabeth Plaza
North Sydney NSW 2060

Tel: +61 2 9923 9100
Fax: +61 2 9959 5387

Metgasco Ltd  ACN 088 196 383