16 January 2020
Vali-1 ST1 Gas Discovery
- Over 35 metres of interpreted conventional net pay in the Patchawarra formation
- Gas also recovered from sands within the Nappamerri Group
- Gas shows and potential pay within the Toolachee formation
- Oil shows in Birkhead and Westbourne formations
- Well to be cased and suspended for future testing, stimulation and production
- Metgasco free carried to case and suspend of Vali-1 ST1 with a 25% interest
- The strong results from Vali-1 reinforce Metgasco’s confidence in the prospectivity of ATP2021
The Board of Metgasco Ltd (ASX:MEL) (Metgasco, or, the Company) is pleased to advise that Vali-1 ST1 has discovered gas in the primary Patchawarra Formation target. The well is currently being cased and suspended for future testing and production. Gas sample testing is currently underway. Common with many successful wells in the Patchawarra, Vali-1 ST1 is expected to be an ideal candidate for stimulation to enhance flow rates.
Vali-1 ST1 reached a TD of 3,217 metres measured depth, in basement, on 10 January. This was followed by an evaluation program that included wireline logging, the gathering of formation pressure data and the sampling of formation fluid. Analysis of the data gathered indicated the discovery of over 35 metres of net gas pay (with a porosity cut-off of 9%) over a gross 312 metre interval in the Patchawarra Formation target.
The Patchawarra Formation was the primary target for the well and this result is on the high side of pre-drill estimates.
Potential gas pay was also calculated in both the secondary Toolachee target and the Triassic age Nappamerri Group, with oil shows also observed in the Jurassic age Westbourne and Birkhead formations with good sand development. In addition to recovering gas from the Patchawarra Formation via MDT sampling, gas was also recovered from the Nappamerri Formation, adding weight to the potential indicated by good gas shows through this interval.
The Vali-1 location is mapped at the edge of, or just outside of structural closure for these reservoirs, indicating significant gas and oil potential as mapped up-dip of the Vali-1 location at these levels. There are also numerous Jurassic structures mapped within the permit which will now be high-graded due to the strong indications of oil migration into the Jurassic level evident in this well.
Metgasco is free carried on Vali-1 ST1 pursuant to farm-out agreements with Vintage Energy and Bridgeport Energy, through to case and suspend. The estimated final Vali-1 ST1 gross well cost, despite certain operational delays to date, is expected to be in line with or less than the agreed farm-in cost cap of $5.3 million.
Ken Aitken, Metgasco Chief Executive Officer, commented:
“The better than anticipated results in the Patchawarra sands of Vali-1 ST1 have confirmed Metgasco’s view of the licence prospectivity of ATP2021. Metgasco believes the permit contains a significant number of sizeable follow-up targets which will be pursued by the JV, including the Odin well following the farm-in to PRL211 late last year.
The oil shows identified in the shallower Jurassic and Triassic age reservoirs and the gas recovered in the Napamerri are examples of this upside potential. We look forward to defining a significant work program to further appraise and develop the Vali discovery and explore this highly prospective region.
Metgasco would like to thank Operator Vintage for taking over the operatorship and safely and efficiently delivering the work program on Vali-1 within 8 months.”
AUTHORISED FOR ISSUE TO ASX BY THE BOARD OF METGASCO LTD
Contact and further information:
Metgasco welcomes shareholder communication and invites all interested shareholders to make contact at any time.
Philip Amery, Chairman
Phone: +61 02 9923 9100