Metgasco Pty Ltd completed a farm-down of interest in exploration permit ATP 2021-P, located in the Cooper-Eromanga Basin, to Vintage Energy Ltd and Bridgeport Energy Ltd. Vintage Energy has acquired 50% interest and operatorship and this deal was complete in December 2019. Bridgeport has acquired 25%, with this farm-in being registered on 10 February 2020. The farm-out has left Metgasco with a 25% holding in the permit. The farm-in deal was subject to relevant authority approvals and registration of the interests.  Metgasco reported it had entered a binding agreement with Bridgeport on 29 August 2019. The deal was entered with Vintage Energy in July 2019.  Under the terms of the Metgasco/Bridgeport deal, Bridgeport funded 32.5% of the first exploration well, up to a maximum total cost of AUD 5.3 million (AUD 1.72 million to Bridgeport) and also 32.5% of future exploration of the permit, up to a total cap of AUD 812,000 (AUD 283,000 to Bridgeport). The contributions by Bridgeport for the farm-in are expected to be completed by end Q1 2020.  Under the Metgasco/Vintage agreement, Vintage contributed 65% of costs associated with drilling a first exploration well (up to AUD 5.3 million) and 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 the farm-in agreements complete participants are: Vintage Energy Ltd (50% + operator), Metgasco Ltd (25%) and Bridgeport Energy Ltd (25%).
Bridgeport Energy Ltd, Metgasco Pty Ltd ATP 2021-P, Cooper-Eromanga Basin - farm-out complete