Metgasco Pty Ltd completed a farm-out agreement with Vintage Energy Pty Ltd, in which Vintage acquired 50% interest in exploration permit ATP 2021-P, located in the Cooper-Eromanga Basin, in December 2019. Vintage funded part of the Vali 1 exploration well under the initial farm-in terms.  The farm-in agreement was entered in to in July 2019, after a Heads of Agreement (HoA) was executed on 22 May 2019.  In late August 2019 Metgasco reported that it had entered a second farm-in agreement, to farm-down a further 25% in the permit to Bridgeport Energy Ltd. This was completed as of February 2020. Bridgeport also funded part of the permitâs upcoming work programme to earn interest.    The permit, which is located in the Cooper-Eromanga basins, was awarded to Metgasco on 29 May 2018 and the company had been seeking a farm-in partner since acquiring the permit ahead of further exploration operations.  The farm-in agreement with Vintage Energy was subject to regular required approvals, such as ministerial approval and licence registration. As per the HOA, Vintage contributed 65% of costs associated with drilling a first exploration well (up to AUD 5.3 million) and to also cover 65% of past exploration costs already incurred by Metgasco (AUD 527,800). The initial work programme over the permit focused on better identifying the leads, completing regional geological evaluation and refining play types. To further define existing shallow oil targets, Vintage will also fund up to AUD 70,000 relating to reprocessing of 2D and 3D seismic data.  The well drilled under the farm-in agreements was the Vali 1 well, drilled in late 2019. The exploration well encountered 35 m net gas pay in the primary Patchawarra Formation, plus additional gas recovery and oil shows the deeper Triassic and Jurassic secondary targets. Vintage reported that the results are on the high side of pre-drill estimates. In addition, potential gas pay was interpreted in the secondary Toolachee target and the Triassic Nappamerri Group, in which, gas was recovered. Oil shows in the Jurassic Westbourne and Birkhead formations were also reported by Vintage.  ATP 2021-P is mainly prospective for Permian gas and Jurassic oil accumulations.   The Odin Prospect is another identified prospect, comprising an anticlinal structure on the western boundary of the permit with an independent closure at a depth of around 2,300 m. The Strathmount 1 exploration well, which was drilled in 1987, lies within the extent of the prospect. The well encountered 21 m of reservoir sands and 13.7 m of interpreted gas pay. Gas flow testing indicated returned gas to surface but at rates were too small to measure. On the 2016 Snowball 3D seismic data, Metgasco reports that the well appears to have intersected the sands outside of the Toolachee and lower Patchawarra level. Odin has been assigned P50 recoverable resources of 8.7 Bcf.  ATP 2021-P, which covers an area 371 sq km, is currently 100% owned and operated by Metgasco. With both farm-in agreements now complete, participants are: Vintage Energy Ltd (50% + operator) Metgasco Pty Ltd (25%) and Bridgeport Energy Ltd (25%).
Metgasco Pty Ltd, Vintage Energy Pty Ltd ATP 2021 permit, Cooper-Eromanga basin - Farm-in complete