MOU signed with Supagas for Nangwarry CO2
Melbourne, Aug 25, 2020 AEST (ABN Newswire) - The PEL 155 onshore Otway Basin joint venture (Vintage Energy Ltd (
ASX:VEN) 50%, Lakes Oil NL ("Lakes") 50% and operator) is pleased to advise that a non-binding Memorandum of Understanding ("MOU") has been signed with Supagas Pty Ltd ("Supagas"), an Australian based distributor of gases for domestic, industrial, medical and other applications.
Under the MOU, Supagas will fund work associated with the preliminary design and costing of facilities for processing Nangwarry CO2, which will allow for the production and delivery of food grade standard CO2. In return, the joint venture will give Supagas the opportunity to submit a formal proposal to develop and/or purchase gas from the Nangwarry resource.
Design work is currently underway for an extended production test of the Nangwarry-1 well, which is being targeted for late 2020 (COVID-19 permitting). The MOU signed with Supagas supports the development, production and purchase of Nangwarry CO2, and is a reflection of the confidence the joint venture has in the Nangwarry discovery.
Neil Gibbins, Vintage Managing Director, said "The MOU with Supagas shows a clear interest by all parties involved to move the Nangwarry CO2 discovery to the next phases of testing and production. We have undertaken a broad range of work relating to the CO2 market and are confident that a strong market exists for a stable and consistent supply of food grade standard CO2. With the depletion and abandonment of the phenomenally successful Caroline-1 well in 2017, we are hopeful that Nangwarry-1 will be able to fill the supply gap left by Caroline-1."
Nangwarry-1 details
The Nangwarry-1 well, onshore Otway Basin, reached a TD of 4,300 metres MD in the Pretty Hill Formation. Gas shows were observed in the top Pretty Hill Sandstone and mid Pretty Hill Sandstone. Laboratory-based analyses of samples identified CO2 content in excess of 90%. These results and evaluation of wireline log data indicate a CO2 column that is potentially well in excess of 65 metres in the Top Pretty Hill Sandstone. The well has been cased and suspended for further evaluation, including the mid Pretty Hill Sandstone, which could not be fully evaluated at the time.
Caroline-1 details
Commercial amounts of CO2 were first discovered in the onshore Otway Basin in the Caroline-1 petroleum exploration well in 1967, which was on production from 1968 until 2017. CO2 is a versatile gas used in a range of processes in the food and beverage industry, as well as in applications in the chemical, refrigeration and laser industries. Caroline-1 was a very successful commercial operation producing 810,842 tonnes of CO2 in its almost 50 years of production.
About Supagas
Supagas is a leading supplier of LPG, industrial, medical, specialty and helium gases in Australia. Backed by Taiyo Nippon Sanso Corporation (TNSC), the 4th largest gas supplier in the world, Supagas is rapidly building a reputation for growth and success based on and their customer service offering and quality products that are focused on highly competitive markets. Supagas has state-of-the-art facilities that allows them to: offer multiple gas types and gas products; and run specialised laboratories to mix and test specialty gas, helping to service customers' needs and requirements.
About Vintage Energy Ltd
Vintage Energy Ltd (ASX:VEN) has been established to acquire, explore and develop energy assets principally within, but not limited to, Australia, to take advantage of a generally favourable energy pricing outlook.
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