Metgasco Pty Ltd commenced a farm-out process for its two Cooper Basin exploration licences: ATP 2020-P and ATP 2021-P in October 2018. A data room has been opened, and in March 2019 the company reported that it was continuing discussions with interested parties ahead of its development timetable in April 2019. On 22 May 2019, Metgasco announced a Head of Agreement (HoA) has been entered into with Vintage Energy, for Vintage to acquire 50% interest in ATP 2021-P. The agreement is subject to several approvals and completion of a farm-in agreement (expected around 30 June 2019).  Metgasco has outlined a number of prospect and leads within the permits, which are surrounded by existing discoveries. The initial work programme will focus on better identifying the leads, completing regional geological evaluation and refining play types. Metgasco plans to drill at least one prospect in 2H 2019.    Two conventional gas prospects have been identified in ATP 2021-P which Metgasco have moved to âdrill-readyâ status after completing sub-surface technical work and seismic interpretation. Gas in place on a risked, high case estimate for both prospects is 111 Bcf. Additional technical work has begun to build on indications of Jurassic, shallow oil plays within the permit area.    The Odin Prospect is an anticlinal structure on the western boundary of ATP 2021 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.    The Vali Prospect is also considered an anticlinal structure at the Toolachee and lower Patchawarra levels with independent closure at a depth of around 2,250 m. Metgasco has reported that the prospect is likely to contain reservoir characteristics similar to that of the nearby Kinta 1 gas discovery. The Kinta 1 well intersected 37 m of interpreted gas pay but did not retuned hydrocarbons to surface. Vali has been assigned P50 recoverable resources of 19 Bcf. In the case that the Vintage Energy farm-in is completed, it is hoped that the Vali Prospect will be drilled at end-2019.    In ATP 2020, Metgasco commenced seismic reprocessing during December 2018 to determine if additional seismic data is required over identified oil and gas leads.    Metgasco was awarded the permits on 29 May 2018 with 100% interest. The areas, totaling 905 sq km, were applied for as PLR2015-2-16 and PLR2015-2-19, after they were offered in the 2015 Queensland State Acreage Release.Â  Metgasco was announced as the preferred bidder in late 2016. Awarded for a period of six years, both permits are due to expire on, or be eligible for renewal by, 31 May 2024.    The HoA with Vintage Energy includes the terms that Vintage is required to contribute 65% of costs relating to ATP 2021-P, including drilling of the 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 permits focused on better identifying the leads, completing regional geological evaluation and refining play types. To further define existing leads, Vintage will also fund up to AUD 70,000 relating to reprocessing of 2D and 3D seismic data.  ATP 2020-P and ATP 2021-P, which cover areas of 534 sq km and 363 sq km respectively, are available for farm-in.Â  Metgasco holds 100% interest and operatorship of the permits. Subject to a completed farm-in by Vintage Energy, participants in ATP 2021-P will become: Metgasco Ltd (50%) and Vintage Energy Ltd (50%).  Companies interested in pursuing this opportunity should contact:    Ken Aitken, Metgasco CEO    Phone: +61 (0) 2 9923 9100
Vintage will earn a 50% operated interest in the ATP 2021 permit from Metagasco (->50%) by funding 65% of the first exploration well, up to a maximum gross cost of US$3,6 MM.