Vintage Energy Receives $5m in Government Grants to Drill Odin-3 and Vali-4 Gas Wells

Vintage Energy (ASX: VEN) has secured $5 million in grants from the South Australian government as cornerstone funding for the drilling of two new gas production wells at the ATP 2021 / PRL 211 joint venture in the offshore Cooper Basin.

The new grants are part of South Australia’s $15m Gas Incentive Grant program, which seeks to accelerate investment in technically and economically sound projects addressing gas supply, storage, and infrastructure before 30 September 2028.

Split into two grants of $2.5m, the funds are expected to cover 50% of the costs of drilling Odin-3 and Vali-4 in the Southern Flank of the Nappamerri Trough.

The Odin and Vali fields were discovered in 2019 and 2020 by Vintage (which owns 50%), and 25% joint venture partners Metgasco (ASX: MEL) and Bridgeport (Cooper Basin).

Southern Flank Success

Five wells have been drilled to date at the Southern Flank projects, with each successful in finding gas, including the Vali-1 and Odin-1 new field discoveries.

Odin-3 has been located to intersect the Toolachee and Epsilon reservoirs similar to Odin-1, where they have proven to be strong producers.

Vali-4 has been designed for fresh access to the Toolachee Formation and to intersect shallower Nappamerri sands defined in seismic studies.

Odin and Vali currently supply gas to South Australian energy generators ENGIE and AGL (ASX: AGL).

Increased Gas Output

Vintage managing director Neil Gibbins said drilling at Odin-3 and Vali-4 would aim to lift output from the fields.

“Vali and Odin represent a significant and largely untapped gas resource for south-east Australia’s energy needs,” he said.

“The grant by the South Australian government is a welcome endorsement that significantly advances our plans to lift gas production.”

“The vision inherent in the Gas Incentive Grants program merits acknowledgment for its encouragement of new gas supply and the tangible support given to advance South Australia’s energy security”.

Vintage anticipates receipt of the full grant amount before month end, enabling it to ascertain rig availability windows and complete requirements for a drilling contract.