SYDNEY, AUSTRALIA: Vintage Energy Ltd (ASX: VEN), 50% curiosity holder and Operator of ATP 2021 (other curiosity holders: Metgasco Ltd, 25%; and Bridgeport (Cooper Basin) Pty Ltd, 25%) announces the signing of a Gas Sales Agreement (GSA) by the ATP 2021 Joint Venture events (JV) and AGL Wholesale Gas Limited (AGL) for the sale of gas produced from the Vali field from start-up (expected mid-CY2022) through to the finish of CY2026.
The phrases of the GSA reflect the Heads of Agreement between the JV and AGL introduced 6 December 2021, following a aggressive process. Commencement of the GSA is topic to fulfilment of conditions precedent.
Production from the Vali gas field, found in 2020, is anticipated to commence following completion of the field’s three wells and connection to the close by Moomba gas gathering network.
Gas produced throughout the manufacturing appraisal is to be sold to AGL on a mixture of agency and variable pricing at market rates. Under the phrases of the GSA, the JV will obtain pre-payments totalling $15 million in three equal tranches from AGL on achievement of milestones because the project strikes to first gas.
These funds are to be utilized particularly to funding the work program to take Vali to first gas. Vintage is fully funded for capital expenditure at Vali through to first money flow.
The first pre-payment is to be made on signing of the GSA and satisfaction of its conditions precedent which include execution of upstream transportation and processing agreements. Vintage Managing Director, Neil Gibbins, said the signing of the GSA was a milestone for the company.
“Vintage Energy now has the GSA, finance and reserves in place to commence income generation within the close to future. We are intent on finishing the supporting agreements and field work to allow gas flows to commence by our mid-year goal time.
“We will be happy to become a provider of gas to the eastern Australia home energy market at a time when new sources of gas provide are being keenly sought.
The quantity contracted under the GSA represents between simply 9% and 16% of the field’s introduced Proved and Probable Reserves. We expect Vali and adjoining resources, such as our Odin discovery, will provide greater volumes of gas to eastern Australia within the approaching years, topic to the teachings acquired throughout appraisal of preliminary manufacturing efficiency from the field,” said Mr Gibbins.
Vali has been independently licensed to carry gross 2P reserves of 101.0 PJ (50.5 PJ net to Vintage, as introduced 1 November 2021). The agency expects early manufacturing efficiency will enhance understanding of the field’s potential and help in determination of optimum future appraisal and development plans. Flow testing of the invention well Vali-1ST1 and logging of the appraisal wells Vali-2 and Vali-3 recognized the field to have a number of gas bearing zones.
Mr Gibbins acknowledged AGL’s role within the commercialisation of the Vali gas field.
“AGL was the best bidder for Vali gas and have consistently demonstrated their willingness to encourage new gas provide for eastern Australia. Their willingness to pre-pay a portion of the contract quantity will expedite first gas flows from the field. We look ahead to commencing gas provide to AGL,” said Mr Gibbins.”
www.vintageenergy.com.au