Vintage Signs South Oz Farm-in Agreement
Vintage Energy has executed a farm-in agreement with Senex Energy for PRL 211 on the South Australian side of the Cooper/Eromanga Basins, it said February 24 in a statement. This binding farm-in agreement replaces the non-binding term sheet that was initially in place.
Under the joint venture, Vintage will become the operator with 42.5% interest, Bridgeport will have 21.25%, Metgasco will have 21.25% and a subsidiary of Senex Energy will own 15%, with Senex to be free carried through the drilling of the first well. Senex is currently the operator and 100% interest holder of PRL 211.
PRL 211 is a 98.49 km2 retention licence that is close to infrastructure and has an initial five-year term expiring in October 2022, with an option to renew the permit for a further five years, Vintage said. 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 potential stimulation and flow testing, will revert to the equity share of the joint venture. Drilling is targeted to take place in Q4 FY20, the company said.
The farm-in is subject to a number of conditions, which Vintage expects will be satisfied, and completion of the transaction will occur, by March 31, 2020.