Vintage JV Plans to Farm Into South Oz Gas Asset
Sydney-listed Vintage Energy led joint venture has executed a term sheet with a 90-day exclusivity period to negotiate a binding farm-in agreement with Senex Energy for PRL 211 on the South Australian side of the Cooper/Eromanga Basins, Vintage said November 22.
Under the proposed joint venture, Vintage will become the operator with 42.5%, Bridgeport will have 21.25%, Metgasco 21.25% and a subsidiary of Senex Energy 15%, with Senex to be free carried through the drilling of the first well, Vintage added. Senex is currently the operator and 100% interest holder of PRL 211.
PRL 211 is a 98.49 km2 retention licence that has an initial five-year term expiring in October 2022, with an option to renew the permit for a further five years. The licence is located immediately adjacent to ATP 2021 (Vintage 50% and operator).
According to Vintage, the main target in PRL 211 is the Odin structure, which is fully covered by recent 3D seismic and has gas potential in the Patchawarra and Toolachee formations. Odin is located on the southern flank of the Nappamerri Trough near the producing reservoirs at the Bow, Beckler and Dullingari gas fields.
Under the terms of the farm-in, Vintage, Bridgeport and Metgasco will drill a well into the Odin structure (with Vintage paying 50% of the estimated cost of the well). “All further work, including the potential to stimulate and flow test the Odin well, will revert to the equity share. The well will be located in PRL 211 with the drilling targeted to take place in Q4 FY20,” Vintage said.