Metgasco and its partners have maintained their 100% success rate in the Cooper Basin, with the casing of the Vali-3 appraisal well for future production.
This comes after wireline logging confirmed the presence of gas pay in the primary target Patchawarra Formation that are in line with pre-drill expectations.
Gas shows were also noted in the lower Nappamerri Group, Toolachee and Epsilon formations, and the Tirrawarra Sandstone, with samples collected from the first two to determine whether gas pay can be interpreted in these zones.
With the casing of Vali-3,Metgasco (ASX:MEL)now has four wells – including the Vali-1 ST1 discovery well – ready for production as the basis of a potential gas development hub in ATP2021 and PRL211
Adding interest, the good oil show observed within the McKinlay Member in Vali-3 despite a lack of mappable Jurassic structural closure suggests that oil has migrated through this area and increases the prospectivity of the Jurassic structural closures nearby.
“The Vali-3 wireline logs delivered on pre-drill expectations in terms of the geological continuity of the Patchawarra reservoir, about 0.5km southwest of Vali-1 ST1,” Metgasco chief executive officer Ken Aitken said.
“The Vali-3 results provide further confidence that the joint venture will progress rapidly to a financial development decision of the Vali field in the 2nd half of CY2021.”
Prior to the drilling of Vali-2 and Vali-3, the Vali gas field was assessed to host proved and probable reserves of 33.2 PJ of gas (8.3PJ net to Metgasco) in the Patchawarra Formation alone.
The well results from Vali-2,Vali-3 will be provided to an independent reserve auditor and , due to the encouraging results of the two appraisal wells, it is anticipated that Vali reserves will increase.
Capital raising
With the drilling program now under its belt, Metgasco is looking to raise $4.58m through a fully underwritten 1-for-3 non-renounceable entitlement offer to existing shareholders.
Shareholders can acquire one new share priced at 2.5c each for every three shares held.
The offer includes one attaching option with a strike price of 3.1c that expires on 31 December 2022 for every three shares subscribed.
Proceeds from the entitlement offer will be used for;
- Appraisal, well completion, well testing, geophysics and commercialisation activities for the company’s Cooper Eromanga Basin assets;
- Progressing the planning of the Perth Basin Cervantes-1 oil prospect including civils activity .
- New business activities & general business working capital.
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