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Metgasco increases interest in Odin Gas Field

  • Metgasco and ATP2021 Joint Venture partners to acquire Beach Energy’s 15% interest in PRL211
  • Increased interest in 2C gross Contingent Resource of 3.1 Bcf

The board of Metgasco Ltd (ASX:MEL) (Metgasco or the Company) is pleased to announce the acquisition of Beach Energy Ltd’s 15% interest in the Cooper Basin Licence PRL211 by Metgasco (21.25%) and the other interest holders in the licence, Vintage Energy Ltd (42.5% and operator) and Bridgeport (Cooper Basin) Pty Ltd (21.25%), subject to Ministerial approval.

The PRL 211 Joint Venture parties will acquire their respective share in the 15% stake in proportion to their existing holding with the result of the transaction being the following equity interests in the PRL: Metgasco 25%; Vintage 50% and Operator; Bridgeport 25%.

PRL 211 is located close to existing Cooper Basin producing gas fields and infrastructure and contains the Odin gas field, discovered and successfully flow tested in September / October 2021. The licence is also adjacent to ATP 2021, held by the joint venture parties in the following equity interests: Vintage 50% and Operator; Bridgeport 25%; and Metgasco 25%. Alignment of interests between the two licences will promote efficiencies in planning and optimise field operations.

Consideration for the transaction has been structured to align with successful production from Odin with an initial milestone payment by the joint venture of gross $1 million with further gross $1.25 million payable in two instalments on achievement of production milestones. Metgasco will spend a total of $562,500 to own a further 3.75% of the PRL211 licence.

Odin-1 was successfully drilled and tested under a farm-in by the ATP2021 JV in 2021 and delivered a stable flow rate of 6.5 million standard cubic feet per day at a flowing wellhead pressure of 1,823 psi through a 28/64” fixed choke in its initial testing. The field is mapped to extend beyond the eastern boundary of PRL 211 and extend into ATP 2021 which is also held by the joint venture.

Independent Certification of resources at Odin by ERC Equipoise Pte Ltd (“ERCE”) were announced to the ASX on 16 September 2021 as 36.4 billion cubic feet (“Bcf”) of gross 2C Contingent Resources in the Toolachee, Epsilon, Patchawarra and Tirrawarra formations of the field located in both PRL 211 and ATP 2021 on the southern flank of the Nappamerri Trough in the Cooper Basin (see gross and net reserve tables below. Refer to 16th Sept announcement for resource notes).

The effect of this transaction will be to redistribute approximately 3.1 Bcf of the 2C Contingent Resource previously attributable to Beach Energy in PRL211 to the joint venture parties.
Metgasco’s net share of 2C Contingent Resource at Odin will increase by 0.77 to 8.77 Bcf as a result.

For more information contact: 

Ken Aitken, Managing Director

Phone: +61 08 6245 0060

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