On 8 May 2019, Vintage Energy Ltd reported that it has entered into a binding Heads of Agreement (HOA) with Firetail Energy Services Pty Ltd for Firetail to acquire 10% interest in exploration permit EP 126, located in the Bonaparte Basin. Vintage secured 100% interest in the permit from Beach Energy in January 2019.  Under the terms of the HOA, Firetail will provide AUD 850,000 of services relating to Cullen 1 well testing to acquire 10% interest in the permit. The total cost of operations is estimated at around AUD 3.2 million. Vintage will remain as operator with 90% interest and will fund the remaining costs if a second partner is not secured.  Subject to Ministerial and regulatory approvals for the farm-in, and subject to the terms of the HOA, Vintage plans to test Cullen 1 over four carbonate zones. The zones are interpreted to exhibit natural fractures and vuggy porosity along with large, irregular shaped pores, which could act as a reservoir for oil and gas. The well was drilled in 2014 and targeted both the conventional and unconventional gas potential.Â  Target units included the shale and tight sands of the Carboniferous Milligans Formation, Carboniferous Bonaparte Formation and Upper Devonian Langfield Group.Â  Beach reported that 1,000 m of limestone and interbedded shales had been encountered, with elevated gas readings and natural fractures observed.Â  In addition, 1,600 m of dark marine shale was encountered. The well was suspended pending testing but this was not completed.   Upon successful testing of Cullen 1, it is likely that Vintage will follow up with a seismic programme over the location to derisk appraisal drilling efforts and the additional plays identified, including an oil play in the Weaber Group sandstones.  EP 126 was awarded on 15 June 2011 and is due to expire on, or be renewed by, 14 December 2019. Vintage Energy Ltd holds 100% subject to an agreement to farm-down 10% interest to Firetail Energy Services Pty Ltd.
Vintage Energy Ltd reported that it has entered into a binding Heads of Agreement (HOA) with Firetail Energy Services Pty Ltd for Firetail to acquire 10% interest in exploration permit EP 126, located in the Bonaparte Basin. 