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    Otway to Test South Australian Well This Month

Summary

Testing of Nangwarry-1 well in the onshore Otway basin will take approximately three to four weeks.

by: Shardul Sharma

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Otway to Test South Australian Well This Month

Otway Energy will start testing Nangwarry-1 well in PEL 155 onshore Otway basin in South Australia around mid-March, its partner in the project Vintage Energy said on March 4.  

The Superior Energy rig will arrive on location at Nangwarry-1 on March 10, after which the well and equipment will be set up for the test. “It is anticipated that testing of the well will take approximately three to four weeks and, should the test be successful, be a material value-adding asset to Vintage over what could potentially be a 50-year period,” Vintage managing director Neil Gibbins said. 

Covid-19 related delays were experienced in mobilising equipment and the rig across the border between Victoria and South Australia, however, these issues have now been resolved, the company said. 

The test will be completed once a desired stabilised flowrate and a volumetric estimate of the recoverable CO2 is obtained. Gross recoverable estimates for Nangwarry-1 CO2 are: low of 7.8bn ft3 (3.9bn ft3 net), best of 25.1bn ft3 (12.6bn ft3 net), high of 82.1bn ft3 (41.1bn ft3 net).  

Meanwhile, Vintage said it on track to start drilling Vali-2 well in Queensland's Cooper basin in April this year. Vali-2 will be followed by Odin-1. A rig contract has been signed with Schlumberger to use Rig-184 to drill Vali-2 and Odin-1, with an option to drill a further ATP2021 Vali well. It is expected that Vali-2 will take about three weeks to reach total depth. Once drilled, the well will be secured and the rig moved to the Odin-1 location in South Australia. Vintage, Metgasco and Bridgeport are partners in the Vali project.  

Vali was discovered in the Cooper/Eromanga basin in January 2020, when a well encountered a gas pay in Nappamerri, Toolachee and Patchawarra formations. The primary Patchawarra formation alone contains 12.3bn ft3 in 1P, 30.3bn ft3 in 2P and 78.9bn ft3 in 3P reserves, according to a December independent appraisal.

The Vali joint venture secured interim approval from the Australian Competition and Consumer Commission to negotiate gas sales from the Vali field in January this year.