In what has been described as possibly the most significant news for the company since Vintage was listed, the oil and gas explorer has announced a considerable upgrade to the gas reserves for its Vali field in the Cooper Basin.
The company revealed independent evaluation has tripled the field’s gross 2P reserves from $30.3 billion cubic feet (Bcf) of gas to 92 Bcf.
The new estimate includes the addition of reserves from the Toolachee formation as well as an increase to reserves from the Patchwarra formation.
Vintage managing director Neil Gibbins said the revised booking is a “major boost” for the company.
“This material increase in reserves significantly enhances the company’s value as we transition towards becoming a domestic east coast gas producer,” said Gibbins.
“We now have independent confirmation that reserves for the Vali gas field are far greater than originally booked, enhancing the long-term economic benefit of this field to Vintage and its joint venture partners.”
Mr Gibbins also noted the upgrade is a major positive for gas pre-sale and debt negotiations, which are nearing final stages.
“This is an exciting time for Vintage and its shareholders, as the key requirements for the commencement of production are now falling into place.”
Vintage operates the Vali field in the Queensland permit ATP 2021 with a 50 per cent interest.
The revised estimate was booked by independent assessors ERC Equipoise (ERCE) and included results from the recently drilled Vali-2 and Vali-3 appraisal wells.
ERCE is an independent consultancy specialising in petroleum reservoir evaluation.
The Vali partners have already awarded a contract to Logicamms to commence detailed engineering for the connection of the Vali gas field to the South Australian Cooper Basin Joint Venture (SACBJV) infrastructure. This work is a crucial step toward first production and cash flow.
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