Vintage farms in to Queensland Cooper basin permit

Vintage Energy Ltd., Adelaide, has agreed to farm in to a 50% interest in Sydney-based Metgasco’s Queensland exploration permit ATP 2021 in the Cooper basin. Vintage will earn its share and take over as operator by paying a substantial share of future drilling and development costs as well as reimbursing Metgasco’s costs to date.

Vintage Energy Ltd., Adelaide, has agreed to farm in to a 50% interest in Sydney-based Metgasco’s Queensland exploration permit ATP 2021 in the Cooper basin.

Vintage will earn its share and take over as operator by paying a substantial share of future drilling and development costs as well as reimbursing Metgasco’s costs to date.

Under the deal’s terms, Vintage will pay 65% of the first well drilled, pay Metgasco $527,800 (Aus.) in cash for back-costs, and fund the full carry of $70,000 (Aus.) for 2D and 3D reprocessing of existing seismic data.

Final documentation is expected to be signed by the end of June.

Exploration drilling will begin with a well in the Vali prospect in the southern part of the permit during this year’s second half.

Vali has a net P50 prospective resource of about 26 bcf of gas with a net recoverable P50 prospective resource of 19 bcf.

A program of 3D seismic has defined anticlinal closure at the Permian age Patchawarra and Toolachee formations in the Cooper basin.

Another prospect, called Odin, which straddles the boundary of ATP 2021 in Queensland and PRL 221 in South Australia, has a P50 resource of 8.7 bcf of gas. Strathmount-1, drilled on the South Australian side in 1987, intersected 21 m of gas sands with an interpreted 13.7 m of interpreted net gas pay.

The 2003 Kinta-1 well, the only well so far in the ATP 2021 permit, intersected 37 m of net gas pay.

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