Metgasco Pty Ltd has entered into a Farm-out Agreement (FOA) with Vintage Energy Pty Ltd for Vintage to acquire a 50% interest in exploration licence ATP 2021-P. Metgasco first announced that a Heads of Agreement (HoA) had been executed on 22 May 2019, followed by the FOA on 2 July 2019.   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 HOA was subject to regular required approvals and was expected to finalized by 30 June 2019, after which, the formal FOA has been signed by both parties but remains conditional on ministerial approval and licence registration. Conditions are expected to be met by end-July 2019. As per the HOA, Vintage will contribute 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.  ATP 2021-P is mainly prospective for Permian gas and Jurassic oil accumulations. The primary drill target, which could be tested in 2019 with an exploration well, is the Vali Prospect â 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.  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 363 sq km, is currently 100% owned and operated by Metgasco. If the farm-in agreement is completed, participants will become: Metgasco Ltd (50% + operator) and Vintage Energy Ltd (50%).
Metgasco Pty Ltd has entered into a Farm-out Agreement (FOA) with Vintage Energy Pty Ltd for Vintage to acquire a 50% interest in exploration licence ATP 2021-P.