Vintage Energy has completed the first and commenced the second of four operational phases to bring the Vali gas field into production.
The initial Vali gas field fracture stimulation campaign was completed in June. Subsequently, the well completion has commenced with the arrival of the Savanna Rig 68.
Vintage, on behalf of the joint venture (JV), has executed a master services agreement with global engineering and construction for pipeline installation and facilities construction and the JV has received the final $5 million tranche prepayment from AGL.
Vali will supply AGL under a gas sales agreement announced 23 March 2022 for the supply of an estimated 9 petajoules to 16 petajoules in the period to end 2026.
Gas committed under the GSA, the first supply agreement for the company, represents 9 to 16 per cent of the field’s proved and probable reserves.
Gas produced from the field is to be transported to Moomba for processing prior to sale.
Operations to enable production from Vali comprises of four phases; a fracture stimulation campaign; well completion; pipeline and facilities construction and commissioning.
Vintage is fully funded for its share of the capital expenditure require to take Vali to first cash flow.
The fracture stimulation campaign announced on the 4 April 2022 has been completed.
The campaign was conducted at the Vali-2 and Vali-3 wells, targeting the gas-bearing Patchawarra Formation across multiple zones in the Vali-2 and Vali-3 wells, with fracture simulation of Vali-1 ST1 having already been completed.
Gas produced in the commissioning phase will be used initially for commissioning of facilities and pipeline and line-pack prior to supply to AGL under the GSA.
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