Vintage Farms into Queensland Asset
Australia’s Vintage Energy has announced an executed binding heads of agreement (HoA) with Metgasco to become a joint venture partner in the ATP 2021 permit on the Queensland side of the Cooper/Eromanga basins.
The agreement is subject to various approvals which will be sought and agreed prior to signing the farm-in agreement, which is expected by June 30, Vintage said May 22.
Under the terms of the HoA, Vintage will earn a 50% interest in ATP 2021 through contributing 65% of the cost of the first well (up to a gross cost of A$5.3mn ($3.6mn) and past exploration costs (65% of which is A$527,800). Vintage said it will also fund up to A$70,000 of 2D and 3D seismic reprocessing to better define exploration leads in the permit.
Effective immediately, Vintage will project manage the planning and drilling of the first well. The permit is near pipelines and facilities, a key investment criterion for Vintage, as they will make it easier for it to sell any gas and oil it finds.