Vintage Energy Ltd. signed a gas sales agreement with AGL for supply of gas from Vali gas field in southwest Queensland, Australia. Funds will be applied specifically to the work program to take Vali to first gas, Vintage said.
Production from Vali—in Cooper basin permit ATP 2021—is expected to begin following completion of three existing wells on the field and connection to the nearby Moomba gas gathering network.
Gas produced during appraisal is to be sold to AGL on a mix of firm and variable pricing at market rates.
Under the terms of the agreement, the joint venture will receive pre-payments totaling $15 million (Aus.) on achievement of milestones as the project moves to first gas.
The volume contracted represents 9-16% of the field’s proved and probable reserves, according to Vintage’s managing director Neil Gibbins.
“We expect Vali and adjacent resources, such as our (nearby) Odin discovery, will supply greater volumes of gas to eastern Australia in the coming years, subject to the lessons acquired during appraisal of initial production performance from the field,” he said.
Vali has been independently certified to hold 2P reserves of 101 petajoules. Early production performance is expected to improve understanding of the field’s potential and assist in determination of optimal future appraisal and development plans.
First gas from the field is expected mid-2022. The agreement with AGL runs from field start-up until end 2026.
Vintage is operator with 50% interest. Metgasco Ltd. and Bridgeport (Cooper Basin) Pty Ltd. each have 25% interest.