Oz Vintage, Metgasco Finalise Farm-in Agreement
Australia-listed Vintage Energy has finalised a farm-in agreement with Metgasco to become a joint venture partner in the ATP 2021 permit on the Queensland side of the Cooper/Eromanga basins, it said July 2. A binding heads of agreement (HoA) was signed in May.
Vintage said it is initially project managing the planning and drilling of the first well in the joint venture programme, with the transfer of the 50% interest in the permit and operatorship to take place once ministerial approval has been received.
Under the terms of agreement, Vintage will earn a 50% interest in ATP 2021 through contributing 65% of the cost of the first well (up to a gross cost of A$5.3mn ($3.6mn) and past exploration costs (65% of which is A$527,800). Vintage said it will also fund up to A$70,000 of 2D and 3D seismic reprocessing to better define exploration leads in the permit.
ATP 2021 is a 370km2 permit which is partially covered by 2D and 3D seismic, with three main Permian gas prospects and several Jurassic oil prospects and leads already identified, Vintage said, adding that it will look to drill the first well, Vali-1 in 2019.