Vali Operations Update
Melbourne, April 27, 2023 AEST (ABN Newswire) - Vintage Energy Ltd (
ASX:VEN), 50% interest holder and Operator of the ATP 2021 Joint Venture (other interest holders: Metgasco Ltd, 25%; and Bridgeport (Cooper Basin) Pty Ltd, 25%,) provides the following update on the Vali gas project.
Summary
The performance of Vali-1 has been pleasing and encouraging for expectations of the well's long-term productivity.
Vali-1 has continued to perform in-line with pre-production forecasts and test results. The well has maintained consistent production and high availability throughout its 65 days online to 26 April 2023.
Operations at Vali-2 are currently suspended pending the arrival of additional equipment and crew onsite to conduct fluid removal and other operations necessary to bring the well online after earlier attempts were unsuccessful. Further detail on Vali-2 operations and status is provided below under the heading 'Discussions of operations'.
Vali-3 maintained steady production averaging 1.3 MMscf/day raw gas from coming online until 7 April 2023, when shut-in was required due to SA Cooper Basin Joint Venture maintenance. Accumulation of water in the wellbore during this non-productive phase prevented the resumption of gas flow.
The conduct of operations at both wells has been frustrated by low availability of equipment and crew.
However, crew and equipment are expected on-site in the coming days to commence fluid removal, focussing on Vali-2 initially.
Vintage fully expects long term stable production from all three Vali wells once dewatering and other remedial actions are accomplished on Vali-2 and Vali-3. This is anticipated to be achieved within the current financial year.
Comment by Managing Director, Neil Gibbins
"The performance of Vali-1 is pleasing and highly encouraging. While we have been delayed at Vali-2 and Vali-3, our strong reserves position is unchanged. Moreover, our recent experience in the market has upgraded our assessment of the value of our gas, over 80% of which remains uncontracted.
"We expect the current program will lead to increased production and gas sales in the current quarter as Vali-2 and Vali-3 come online".
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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