Hi Cara,Some thoughts belowPatchawarra and Toolachee Formations...

Hi Cara,
Some thoughts below
Patchawarra and Toolachee Formations (Primary and secondary objectives)

Possible recoverable raw gas, high-side volume of 72.9 Bcf from a combined Toolachee and Patchawarra objective.

MEL 25% share = 18.23 Bcf raw gas

· Assume 15% CO₂ = 15.5 Bcf hydrocarbon gas MEL share (2.5 MmBOE)

NappamerriFormation (Pre-drill: was not considered an objective at the Vali-1 location)

The Nappamerri Group, which had strong gas shows over multiple intervals in Vali-1, consists of two formations, the late Permian to Early Triassic Arrabury Formation and the Middle to Late Triassic Tinchoo Formation. The Arrabury Formation is generally considered a regional seal, although there are thin reservoir (sandstone) intervals around 2 metres in thickness. The main reservoir interval in the Nappamerri Formation is Tinchoo Formation, with porosity ranges from 0.2 to 19.3%, permeability from 0.01 to 1985 mD, with averages of 12% and 26 mD respectively.

The Vali-1 announcements provided no area (square kms), potential reservoir thicknesses (m) or potential net pay (m) for the Nappamerri but as announced, gas was recovered from the Nappamerri Formation by the MDT tool, adding weight to the potential indicated by good gas shows through this interval. As the Vali-1 well was sited downdip from the structural high at the Nappamerri level, there could be a commercial resource near-by that may warrant an appraisal well up-dip of the Vali-1 location. At this stage, there is too little subsurface information to make an estimate of volumes in the Nappamerri i.e. no depth structure map to work out area and column height, no net pay thickness and no petrophysical properties.

Oil leads

The shallow oil leads really get my imagination going; possibly 1-4 million barrels of recoverable resource range (100%). In addition to the Patchawarra gas discovery (and Toolachee?) and follow-up opportunity assessment (Odin and others), VEN and MEL have considerable subsurface work to do in 2020 to get a clear understanding of both the remaining gas potential and oil potential in this permit.

The ATP2021 block has considerable exploration upside and I reckon VEN and MEL’s confidence and willingness for more drill is growing.

Kind regards OldGeo