Hi stumpy,Firstly, I reckon that VEN as operator, is doing a...

Hi stumpy,
Firstly, I reckon that VEN as operator, is doing a solid job appraising the various formations as the Vali field is brought online. Here's my observations from today's announcement.

1. Vali-1ST1 is performing well and producing gas from the 80m of net gas pay logged in primary objective at Vali, the Patchawarra Formation. The two-day production test at Vali-1ST1 back in 2020, had a stabilisedflow rate of 4.3 MMscfd through 36/64” choke at 942 psi.Transient tests were also undertaken withrates recorded between 3.7 MMscfd (through a 24/64” choke at 1,676 psi FWHP)and 7.5 MMscfd (through a 32/64” choke at 1,593 psi FWHP). I think the initial target rate was expected to be closer to 5mmscf/d raw gas though; perhaps as the well cleans-up it will get there.
2. Vali-3 is producing gas only from the secondary objective Toolachee Formation. I was presently surprised to read that Vali-3 was producing gas from the Toolachee because in the drilling results made no mention of net gas pay count. The main game in Vali-3 is in the deeper Patchawarra Formation which has 101m of conventional gas pay. On the Toolachee depth structure map (see below), Vali-3 is located close to the mapped edge of the Toolachee gas accumulation / possible gas-water contact which may explain the water production. In my view, Vali-3 is likely producing at a limited gas rate due to its proximity to the possible gas-water contact (see map below). I think a decision on Vali-3 to bring on the primary objective Patchawarra Formation will occur sooner rather than later.
3. Vali-2 is located at the crest of the Toolachee depth structure (see below) with 24m of logged gas pay and this was announced to the market. Vali-2 should perform strongly from the Toolachee, although again, the main game is the deeper Patchawarra.
4. The deeper Patchawarra Formation which contains the bulk of the 2P reserves in Vali.
5. It's early days as these wells provide critical data for input into the full field development plan.
6. The end March 2023 MEL quarterly may disappoint from a "receipts from customer" perspective, as we will only have cash generated from Vali-1ST1 production. We will have to wait from the end June quarterly to get a better "read" on revenue. I hope your estimate of around $450k is on the money.

And when Odin comes online later this year (late Q4 I reckon), initially from the Toolachee Formation (37m net gas pay), hold onto your hat..........I can't wait for an announcement on a GSA!


Kind regards OldGeo