Drilling rig secured for onshore Otway Basin

Monday, July 8, 2019

Vintage Energy Ltd (“Vintage”, ASX: VEN) is pleased to announce that the operator of the Otway Basin Joint Venture (PEL 155, Vintage 50%), Otway Energy Pty Ltd (“Otway”), has advised that Easternwell Rig 106 has been secured to drill the Nangwarry-1 well in the Penola Trough, onshore Otway Basin. Beach Energy Ltd (“Beach”) and Otway will demobilise/mobilise the rig from Beach’s location in the Perth Basin in Western Australia to the Nangwarry-1 site following completion of Beach’s Perth Basin drilling activities. The rig has been secured via a rig sharing agreement with Beach. The joint venture anticipates the rig will be available to commence drilling Nangwarry-1 in October/November 2019.

The fit for purpose Easternwell Rig 106 is a fully automated 1,500 horse-power drilling rig, specifically designed and capable of drilling to a depth of 5,000 metres. The fully automated capability improves efficiency and safety throughout the drilling process. Preparation works for the lease in line with the rig specifications are well advanced and expected to be completed over the coming month.

The joint venture received a South Australian Government PACE gas grant of $4.95 million which will be used to partly fund the drilling Nangwarry-1. The prospect is a three-way dip fault dependent trap in the Pretty Hill and Sawpit formations, defined on 3D seismic. The Pretty Hill target is considered analogous to the nearby Beach owned Katnook, Haselgrove and Ladbroke Grove fields which have produced substantial quantities of gas since discovery. The Sawpit target is a direct analogue to the recent Haselgrove-3 discovery (Beach, 100%) which flowed gas at 25MMscfd on test. The well is anticipated to take approximately 45 days to drill and, if successful, will be tested for gas flow shortly after completion.

Nangwarry-1 has a best estimate gross prospective resource1 of 57 Bcf (28.5 Bcf net). Any gas produced from Nangwarry-1 can be expedited to market due to its close proximity to infrastructure and industry. Nearby infrastructure includes the Katnook gas processing plant (operated and currently being upgraded by Beach) located approximately 10 kilometres to the southeast, and a substantial network of pre-existing pipelines that connect to local industry and the eastern states gas supply network.

The Otway Basin Joint Venture looks forward to working with the Government of South Australia, local industry and the South East community to progress this exciting conventional gas exploration drilling opportunity.

Vintage Managing Director, Neil Gibbins, said “Vintage is very pleased to secure Easternwell Rig 106 to drill Nangwarry-1. Should the well be successful, it would extend the proven Pretty Hill Sandstone play province as well as the new Sawpit Sandstone play province. A positive result would have the potential to supply much needed gas to local industry in the South East of South Australia, as well as the South Australian market more generally.”

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Vintage Energy

Vintage Energy has been established to acquire, explore and develop energy assets within Australia that will provide gas to the eastern states.

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