Nangwarry Recoverable CO2 Booking
Employing a method consistent with the June 2018 Society of Engineers Petroleum Resources Management System ("PRMS") methodology, a gross Best Case of 25.1 Bcf recoverable CO2 has been booked for the Nangwarry discovery, which is held by the PEL 155 Otway Basin Joint Venture (Vintage 50%, and Lakes Oil NL ("Lakes") 50% and operator).
Managing Director, Neil Gibbins said, "The recoverable gas booking, along with the recently announced MOU with Supagas Pty Ltd, takes us a significant step closer to delivering first CO2 production from a potentially valuable annuity style asset. Once we have flow tested the Nangwarry-1 well, we will look to expeditiously mature these volumes to reserve status."
Under PRMS, volumes of non-hydrocarbon by-products cannot be included in any Reserves or Resources classification. ERC Equipoise Pte Ltd ("ERCE") has assessed the sales gas volumes attributable to the Nangwarry-1 discovery using a methodology consistent with that prescribed by the PRMS. ERCE independently assesses a Best Case of 25.1 Bcf gross recoverable CO2 in the top Pretty Hill Sandstone of the Nangwarry CO2 discovery, located in the south east of South Australia (12.6 Bcf net to Vintage). This compares extremely well with other commercial Otway Basin CO2 fields such as Caroline (~15 Bcf), which was in production for approximately 50 years, and Boggy Creek (~14 Bcf).
The Nangwarry-1 well was operated by Lakes and its contractors, with no safety or environmental incidents experienced during drilling. A high-quality CO2 gas column of approximately 90 metres has now been determined from sampling and pressure data, with a further 45 metres subject to confirmation by testing. This is a 25-70 metre increase over the previously advised 65 metre column. Laboratory analyses indicate that around 90% of the gas content is CO2, with the residual being methane. This is an excellent outcome as the methane can be separated from the CO2 and used to power the facility that would process the gas to food grade quality CO2.
The Joint Venture recently announced (refer ASX release on 19 August 2020) a non-binding Memorandum of Understanding ("MOU"), that was signed with Supagas Pty Ltd ("Supagas"), an Australian based distributor of gases for domestic, industrial, medical and other applications. Under the MOU, Supagas will fund work associated with the preliminary design and costing of facilities for processing Nangwarry CO2, which will allow for the production and delivery of food grade standard CO2. In return, the joint venture will give Supagas the opportunity to submit a formal proposal to develop and/or purchase gas from the Nangwarry resource.
Design work is currently underway for an extended production test of the Nangwarry-1 well, which is being targeted for late 2020.
To view tables and figures, please visit:
About Vintage Energy Ltd
Vintage Energy Ltd (ASX:VEN) has been established to acquire, explore and develop energy assets principally within, but not limited to, Australia, to take advantage of a generally favourable energy pricing outlook.
Vintage Energy Ltd