New sources of gas need to be found to offset the emerging gas crisis in the east coast market and the Otway Basin bordering the South Australian-Victorian border can be part of that solution, according to one of Adelaide’s newest ASX-listed petroleum explorers.
Addressing the first day today of the two-day Paydirt 2019 South Australian Resources and Energy Investment Conference in Adelaide last week, Vintage Energy’s Managing Director, Mr Neil Gibbins, said the Victorian gas supply market alone is expected to fall from 435 petajoules (PJ) two years ago to around 187PJ by 2022.
“The supply profile is further impacted by adverse State Government policies on gas exploration but this favours new players like Vintage whose strategy is focused on capitalising on this east coast gas supply squeeze and subsequent rising oil and gas prices.”
The PEL 155 Joint Venture in which Vintage is a 50% equity holder is moving towards signing a contract for the drilling of the new Nangwarry-1 gas well between Penola and Mount Gambier in SA’s South East and which is within 10 kilometres of existing gas processing facilities.
The well’s prospects have been enhanced by a SA Government PACE grant contributing A$4.95 million to the drilling cost of the total cost of $12-14 million.
The target is in a proven commercial gas province and offers a net prospective resource to Vintage of 28.5 billion cubic feet (Bcf) of gas.
Vintage also has interests in the adjoining PEP171 acreage in far western Victoria.
Site preparation work has commenced. The well will have a target depth of around 3,000 metres and 4,100 metres total depth.
