Vintage Energy (ASX: VEN) is set to ramp up its gas production in central Australia following a successful quarter of well commissioning, workovers and reserves upgrades that saw both the Odin-1 and new Odin-2 wells flowing gas simultaneously.
Odin-1 was taken offline briefly due to commissioning requirements before being brought back into production, while Odin-2 was commissioned for production in mid-October after wet-weather-induced delays.
The two wells are now supplying gas to the Pelican Point power station under a long-term contract.
The company’s annual statement of reserves and resources released at the end of September incorporated an independent assessment of the Vali and Odin gas fields in the Cooper Basin.
This assessment provided an inaugural classification of overall proved reserves, along with proved and probable reserves for the Odin gas field.
Vintage’s net 2P reserves at Odin are estimated to be 4 million barrels of oil equivalent (MMboe), including 22.4 petajoules of sales gas and ethane.
The company’s net proved reserves jumped 55% to 6.3MMboe, largely due to the conversion of contingent resources to reserves attributable to Odin.
The company also made a significant corporate move during the quarter with a proposal to merge with well-regarded onshore gas explorer and developer Galilee Energy (ASX: GLL).
“Looking to the future, the heads of agreement signed in August for the merger of Vintage Energy and Galilee Energy has set a path for Vintage to upgrade its capacity to address the east coast gas opportunity, starting with our Cooper Basin gas projects,” Mr Gibbins said.
“We are working with the team at Galilee to take the merger to reality in the coming months.”
The two companies believe the merger will result in a financially stronger, better-resourced company to capitalise on the favourable market outlook for gas supply to eastern Australia.
The merged entity’s improved financial position is expected to support the expansion of Vintage’s gas projects in the Cooper Basin and a substantial gas contingent resource with the addition of new projects in the Galilee Basin.
A binding scheme implementation deed for the merger was signed and announced subsequent to the end of the quarter, with a scheme meeting set for December.
Subject to the satisfaction of necessary conditions, implementation is expected to occur between December 2024 and January 2025.
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