document: The joint venture partnership of Metgasco Pty Ltd, Vintage Energy Pty Ltd and Bridgeport Energy Ltd has entered into an agreement with Senex Energy Ltd to enter PRL 211, located in the Cooper-Eromanga Basins. The joint venture already has ownership of adjacent exploration licence ATP 2021-P, which is on the Queensland side of the basin (subject to relevant authority approvals and registration of the interests). PRL 211, located in South Australia, is currently 100% owned by Senex's subsidiary Stuart Petroleum Pty Ltd. Entry into the retention lease provides the joint venture with complete access to the Odin Prospect which straddles both ATP 2021-P and PRL 211. The Vali Prospect, located solely in ATP 2021-P, is scheduled to be drilled in December 2019 which could provide significant de-risking of the Odin Prospect.  Under the terms of the initial farm-in agreement, a term sheet has been executed with a 90-day exclusivity period for the companies to negotiate a final farm-in agreement. Upon completion, it's proposed that Vintage will acquire operatorship of the licence with 42.5% interest. The remaining interest will be split between Bridgeport (21.25%), Metgasco (21.25%) and current holder Senex (15%). A number of conditions must be satisfied by 31 January 2020 including Ministerial approvals, a demonstration of sufficient funds being available to drill a well and the execution of a formal farm-in agreement.  With the Odin structure being the main target, the terms extend to specifically drilling the prospect, for which, Vintage will be liable for 50% of the costs to acquire its 42.5% equity. The remaining costs will be split evenly between Bridgeport and Metgasco. It's expected that the initial well costs will be around AUD 4 million. Subsequent well testing costs will reflect the equity share in the licence once the farm-in deal is completed.   PRL 211 was awarded over exploration licence PEL 637 (replacement of PEL 516, 2010), which was awarded in 2014 to Stuart Petroleum. Origin entered in 2015 forming the subsequent partnership for PRL 211, which was awarded on 25 October 2017. PRL 211 now covers nearly 100 sq km. The joint venture partnership ended on 26 June 2018 with Stuart acquiring Origin's 40% interest.   The Odin Prospect comprises an anticlinal structure on the eastern 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 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 gross P50 recoverable resources of 12.6 Bcf, a 3.9 Bcf upgrade from estimates released in 2018.  Across the state and licence boundary, ATP 2021-P is mainly prospective for Permian gas and Jurassic oil accumulations. The Vali Prospect could be tested in December 2019 which comprises 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.
summary: Bridgeport Energy Ltd, Metgasco Pty Ltd, Vintage Energy Pty Ltd extend their JV partnership to PRL 211, Cooper-Eromanga Basins