Vali advances through on-site operations

Vali-1 Vintage Energy Vali Gas

The Vali gas project has continued to advance through its on-site operations. Likewise, the contracting of a rig for well completions and the sourcing of capital items required for construction, including pipe and plant materials, is in progress.

Vintage contracted with Savanna Energy Services for Rig 68 to perform the well completion campaign. The rig’s current contract expires at the end of June 2022.

The campaign comprises of the completion of the Vali-1 ST1, Vali-2, Vali-3 and Odin-1 wells. Moreover, the campaign is expected to commence in early July 2022 with an expected duration of four to six weeks.

Execution of the rig contract will enable the final $5 million pre-payment by AGL to the joint venture to be invoiced.

The construction phase of the project comprises of installation of gas gathering, separation, metering and cooling infrastructure at Vali. Additionally, dual 13 km pipes used to connect the Vali Field to the Moomba gas gathering system must be installed.

Due to global supply chain issues, the delivery dates for a range of equipment and materials required for construction have been delayed. Subsequently, construction is not anticipated to begin until September 2022. First gas, similarly, is now anticipated to begin in late September or early October based on current projections.

Fortunately, Vintage nevertheless expects to commence cash generation from gas supplies in the first half of the 2023 financial year.

While a disappointing result for the Vali JV, the delay represents a minor deferral in the commencement of revenue from a 100 PJ gas field expected to produce over many years, initially via a contract with AGL.

The gas field lies in the south-western QLD permit, ATP 2021. Vintage Energy holds 50 per cent operating interest. Additional interest holders, Metgasco and Bridgeport hold 25 per cent interest each.

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