Operator Vintage Energy is preparing to spud an onshore exploration well on the Vali prospect in Queensland, Australia.
Vintage confirmed Tuesday it had signed a letter of intent to use Schlumberger’s SLR-185 rig to drill the Vali-1 well in ATP2021 later this year.
The well will target an anticlinal closure in the southern part of the permit, targeting gas in Permian aged reservoirs, specifically the Patchawarra formation, with the Toolachee formation a secondary objective.
The structure was identified on the 2017 Snowball 3D seismic survey and lies about three kilometres from the Kinta-1 well which intersected gas charged sands in the Patchawarra and Toolachee formations in 2005.
Vintage places the best estimate prospective resources at 35.1 billion cubic feet in the Patchawarra, with the Toolachee estimated to hold 3 Bcf. It added both formations carried a 34% estimated chance of success.
The company is earning a 50% operated interest in ATP2021 by funding 65% of the cost of Vali-1, up to a gross cost of A$5.3 million (US$3.6 million), as well as paying 65% of past exploration costs and funding up to A$70,000 of 2D and 3D reprocessing following a farm-out agreement with Metgasco struck earlier this year.
Bridgeport Energy also signed a deal with Metgasco in August which will see it earn a 25% interest in the permit by funding 32.5% of Vali-1.
Metgasco will continue to hold a 25% interest in the permit following the completion of the farm-out agreements.
