Up-and-coming Australian oil and gas developer Vintage Energy (ASX: VEN) is celebrating the signing of a master gas sales agreement for the initial supply of gas from its Odin field.
Vintage is the 50% interest holder and Operator of the Odin discovery in South Australia’s Cooper Basin and the PRL 211 joint venture, which includes Metgasco (ASX: MEL) (25%); and Bridgeport (Cooper Basin) Pty Ltd (25%).
The PRL 211 partners have contracted with Pelican Point Power Limited, a joint venture between ENGIE Australia and New Zealand (72%) and Mitsui & Co Ltd (28%), to supply gas from Odin from field start-up until 31 December 2024. No total gas supply figures have been revealed, as yet.
The Odin gas sale deal follows a recent agreement by the PRL 211 JV to accelerate connection of the Odin-1 gas well in South Australia.
Second success
It also comes just months after Vintage achieved its maiden production success when gas commenced flowing from the Vali field in Queensland permit ATP 2021 to fulfill a contract with AGL to supply a hungry Eastern Australian energy market.
Vintage is also a 50% interest holder and Operator of the ATP 2021 joint venture with Metgasco and Bridgeport.
Significant deal
Vintage managing director, Neil Gibbins, said the agreement with ENGIE is significant as it is a major energy provider to eastern Australia.
‘’This agreement expands our production and revenue generating footprint and provides an attractive commercial footing for addressing the promising appraisal opportunities we have identified on the field.”
“The GSA provides for interruptible supply of all gas produced from the Odin gas field to ENGIE for a period of up to 17 months.”
“The Odin experience has highlighted the eagerness of gas users to secure the supply they need. At Vali and Odin we have uncontracted gas we expect will be supplying eastern Australia for many years.”
“It is clear these resources are valued by gas users, as are the appraisal and exploration opportunities we have identified around the Vali-Odin hub,” he said.
Recent discovery
Discovered in 2021 with the drilling of the Odin-1 exploration well, Odin has confirmed gas pay in the Toolachee, Epsilon and Patchawarra formations with a gas flow rate of 6.5 MMscfd from the Epsilon and Toolachee formations.
The well was completed as a Toolachee and Epsilon gas producer as part of the Vali well completion campaign conducted in July – August 2022.
The proposed accelerated Odin connection includes the construction of a 1.4 km spur to the existing Vali-Beckler pipeline. First flows are targeted for the September quarter.
