Metgasco has announced execution of a gas sales agreement between the ATP 2021 JV partners and AGL for the delivery of all gas produced from the Vali Field from field start-up.
The Vali field is expected to start production in mid-2022 and on 6 December 2021, the JV, comprising Metgasco, New Hope and Vintage Energy, signed a heads-of-agreement with AGL.
Production from the Vali gas field, discovered in CY2020, is expected to commence following completion of the field’s three wells and connection to the nearby Moomba gas gathering network.
Located in the lightly explored southern flank of the Nappamerri Trough of the Cooper Basin in southwest Queensland, the project was initially brought from farm-in to discovery and resource assessment in nine months.
Gas produced during the production appraisal is to be sold to AGL on a mix of firm and variable pricing at market rates. Under the terms of the GSA, the joint venture will receive pre-payments totalling $15 million in three equal tranches from AGL on achievement of milestones as the project moves to first gas. These funds are to be applied specifically to funding the work program to take Vali to first gas.
Metgasco is fully funded for capital expenditure at Vali through to first cash flow.
The first pre-payment of $15 million is to be made on signing of the GSA and satisfaction of its conditions precedent which include execution of upstream transportation and processing agreements.
Total volume of the field has been estimated at 9PJ to 16PJ (gross).