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Vali-1 ST1 Well Update

3 June 2020

 

Vali-1 ST1 Well Update

 

  • Six stage well stimulation commencing early July 2020
  • Extended flow testing immediately after stimulation
  • Results expected in early August 2020
  • Condor engaged to undertake stimulation program
  • GPA Engineering engaged for concept design work on pipeline connection
  • Discussions commenced with Santos for gas infrastructure access
  • Vali gas discovery net 2C Contingent Resource of 9.4 Bcf1

 

 

Metgasco Ltd (ASX: MEL) (“Metgasco” or “the Company’’) advises that operator Vintage(ASX:VEN) has primarily completed planning work for the fracture stimulation of the Vali discovery , with the stimulation of Vali-1 ST1 expected to commence in early July 2020. 

The ATP 2021 joint venture (Vintage 50% and operator, Metgasco Ltd 25% and Bridgeport (Cooper Basin) Pty Ltd 25%) has awarded the Vali-1 ST1 fracture stimulation activities to Condor Energy Services Pty Ltd (“Condor”).

Condor will mobilise to site later this month, subject to completing their current program, with the stimulation program now finalised by the Joint Venture. It is expected that there will be six stages stimulated in Vali-1 ST1, five in the Patchawarra section and one in the deeper Tirrawarra / Basal Patchawarra section. 

The gas saturated zones to be  stimulated are at depths of between 2,810 metres to 3,140 metres.  It is anticipated that fracture stimulation will take approximately  a week to complete and, once done, flow testing will commence immediately with potential gas flow rates recorded over a period of up to several weeks. Results will then be assessed and incorporated into the commercialisation plan for the asset.

In May the Vali-1 ST1 casing was successfully pressure tested and a cement bond log acquired. These two pieces of work have confirmed the wellbore to have the requisite integrity for the next stage of activity.  In addition, a baseline temperature log was acquired which will provide important information in assessing the effectiveness of the fracture stimulation stages.

 

Ken Aitken, Metgasco Chief Executive Officer, commented:

“Vintage has assembled an experienced quality operational team and have efficiently progressed the planning work for the stimulation and flow testing of the Vali gas discovery. We anticipate a positive gas test result based on Patchawarra stimulation results in similar quality wells in an adjacent licence.

To enable a rapid production tie-in on establishing a commercial gas flow-rate on Vali, the JV has already initiated pipeline engineering design and infrastructure tariff discussions with Santos. I look forward to delivering revenue from Vali within 12 months.”

 

For more information contact: 

Philip Amery
Chair
+ 61 402 091 180
philip.amery@metgasco.com.au

www.metgasco.com.au

Ken Aitken
CEO
+61 8 6245 0062
ken.aitken@metgasco.com.au

CONTACT US

West Perth Office
Level 2, 30 Richardson St.
West Perth, WA 6005

Tel: +61 8 6245 0060
Metgasco Ltd  ACN 088 196 383