08/21/2020 | Press release | Distributed by Public on 08/21/2020 00:05
The ATP 2021 Joint Venture (Vintage Energy Ltd (ASX: VEN, 'Vintage') 50% and operator, Metgasco Ltd (ASX:MEL) ('Metgasco') 25% and Bridgeport (Cooper Basin) Pty Ltd 25% is pleased to advise that the highly successful flow test program for Vali-1 ST1 has completed. During the extended flow test program, a rate of 4.3 MMscfd of gas was measured through a 36/64'choke at a flowing well-head pressure ('FWHP') of 942 psi over a two-day period. Transient tests were also undertaken with rates recorded between 3.7 MMscfd (through a 24/64' choke at 1,676 psi FWHP) and 7.5 MMscfd (through a 32/64' choke at 1,593 psi FWHP).
The program was carried out safely and as planned. Strong gas rates were achieved in all flow periods and quick pressure build-ups were observed during all shut-in periods, with pressure levels quickly approaching around 3,000 psi. All flow rates were restricted through varying choke sizes to ensure proppant was not returned from the formation into the well bore, therefore avoiding any reduction in the effectiveness of the stimulation process.
During the flow testing of the well, the following activities were undertaken:
As a consequence of the flow testing of the well, our initial estimates of the potential gas flow rate for the Vali-1 ST1 well are in excess of 5 MMscfd.
All of this information will be assessed and incorporated into a commercialisation plan for the asset, which will include an estimate of the number of development wells required to efficiently produce gas and maximise returns from the Vali Field.
All equipment used during the program has now been demobilised from site. The Vali-1 ST1 well is planned to be completed in October 2020. The completion will consist of a packer run on production tubing set above the top perforated/fractured interval allowing multiple zones to contribute to production.
Discussions are underway with Santos Ltd, the Cooper Basin Joint Venture operator, on connection of the field into the Moomba gas gathering system.
Ken Aitken, Metgasco Chief Executive Officer, commented:
'We are delighted to report that the Vali-1 ST1 well test program was safely and successfully completed, with the peak gas production rate exceeding our expectations for a hydraulically fractured well in the area. The production log confirming that all zones fractured were contributing to the gas production is an excellent technical outcome and will assist with the conversion of contingent gas resources to reserves. On behalf of Metgasco I would like to thank the Vintage operating team, hydraulic fracturing consultants and all the service companies who have safely delivered all the well test objectives.
I look forward to the rapid analysis of the data gathered to enable reserves to be booked and, subject to successful gas sales and tariff discussions, the JV proceeding to a development decision. This test result is another important step in Metgasco's goal to becoming a production company by next year.
The Vali-1 technical success of un-locking excellent gas production rates from low permeability sands bodes well for the commercialisation of other seismically identified gas prospects in ATP2021'
MMscfd = Million standard cubic feet per day.
FWHP = Flowing wellhead pressure.