document: Metgasco Pty Ltd, Vintage Energy Pty Ltd and Bridgeport Energy Ltd reported on 24 February 2020, that they have executed the farm-in agreement, to enter PRL 211, located in the Cooper-Eromanga Basin. Under the terms of the farm-in, which was entered into in November 2019, the companies will be acquiring interest from current operator of PRL 211, Senex Energy Ltd. A number of conditions are required to be satisfied, including executing a formal farm-in agreement. Other conditions include Ministerial approvals and a demonstration of sufficient funds being available to drill a well. The remaining conditions are expected to be completed by 31 March 2020.  Under the terms of the farm-in agreement, it's proposed that Vintage will acquire operatorship of the licence with 42.5% interest, with the remaining interest split between Bridgeport (21.25%), Metgasco (21.25%) and current holder Senex (15%). Senex will be free carried for the first well, as part of the farm-in terms.   The joint venture partnership of Metgasco, Vintage Energy, Bridgeport Energy and Senex Energy 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.   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. The well is planned to be drilled in Q4 2020. It is 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.     The Vali Prospect, located solely in ATP 2021-P, was drilled in December 2019/January 2020 and was, prior to drilling, reported to provide significant de-risking of the Odin Prospect. The Vali 1 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. Oil shows in the Jurassic Westbourne and Birkhead formations were also reported by Vintage. As of 16 January 2020, Vintage plans to case and suspend the well for potential stimulation, which could increase permeability in the Patchawarra sandstones, flow testing and future production.  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.
summary: Vintage will acquire operatorship of the PRL 211 licence with 42,5% interest, with the remaining interest split between Bridgeport (21,25%), Metgasco (21,25%) and current holder Senex (->15%).