An exploration well being drilled by a joint venture between Metgasco, Vintage Energy and Bridgeport Energy in Australia’s onshore Surat basin has hit gas.

The Vali-1 ST1 has reached a depth of 3217 metres, with Metgasco confirming Tuesday initial log analysis indicated gas had been intersected in multiple sands in the primary Patchawarra formation.

It added that, to date, this gas saturation has been calculated in the upper section of the Patchawarra, above the VC50 coal, while log data across the section below the VC50 are planned to be acquired at the conclusion of conditioning operations.

Metgasco noted the section below the VC50 exhibited strong shows and included some of the best quality sandstone samples whilst drilling.

“Metgasco believes that the Vali-1 ST1 results provided by wireline logs to date are very encouraging and we still have the lower Patchawarra to evaluate,” Metgasco chief executive Ken Aitken said.

“We look forward to finishing the well reservoir evaluation and to updating shareholders shortly.”

It was previously reported the exploration well also observed high gas shows while drilling across a number of intervals in the Nappamerri group and two thinner intervals in the Toolachee sands, along with oil shows in the shallower Westbourne and Birkhead formations.

Metgasco Tuesday said the joint venture was considering its forward plan in respect to any further log or formation pressure evaluation with respect to the gas shows in the Nappamerri and Toolachee.

Prior to drilling, Metgasco stated it believed Vali to hold 38.1 billion cubic feet in best estimate unrisked prospective resources and placed the chance of success for the well at 34%.

Metgasco is being free carried through the drilling under separate farm-out agreements struck last year with Vintage and Bridgeport.

Following the completion of the farm-outs, Vintage will hold a 50% interest in ATP2021, while Bridgeport and Metgasco will each hold a 25% share.

Exploration

Logs confirm gas at Vali prospect