Vintage Energy has begun drilling the Odin-1 exploration well in the Cooper Basin, South Australia.
Managing director Neil Gibbins said the company’s Cooper Basin drilling program continues to move forward with the Odin-1 well already at a depth of 1658m.
“We are targeting gas in the Toolachee and Patchawarra formations in Odin-1, which is only around seven kilometres due west of the Vali gas field,” he said.
The well is expected to reach the Toolachee Formation, the first of the target zones, this weekend. Odin-1 is being drilled to address a fault bounded Patchawarra Formation closure, up dip of Strathmount-1, a well drilled in 1987 and plugged and abandoned after discovering what was then considered a non-commercial hydrocarbon accumulation.
Strathmount-1 is now interpreted to have conventional gas pay in the Toolachee Formation and both conventional and low permeability gas pay in the Patchawarra Formation.
Gibbins further highlighted that the joint venture has approved the drilling of the third Vali gas field well, Vali-3, located in Queensland.
The well is fully funded and will commence once the SLR184 drill rig has finished at Odin-1.
“This is a very exciting phase for Vintage as we look to shore up a multi-well field at Vali and test a new prospect with Odin-1. To date we have delivered success on the five wells with which we have been involved (Vali-1 ST1, Vali-2, Nangwarry-1, Albany-1 ST1 and Albany-2) which is an outstanding result for any junior explorer,” Gibbins said.
“We are also highly confident of a reserve upgrade at the Vali Field due to gas discovered in the Toolachee Formation at Vali-2, which had not previously been included in the certification undertaken by ERCE.”
Last week the ACCC granted authorisation for Vintage, Metgasco and Bridgeport to enter into joint gas marketing arrangements in relation to gas from the Vali Field.
This authorisation is for a period of five years and, within this period, the joint venture may enter into gas supply agreements with customers on common terms and conditions (including price) for terms of up to 15 years.