Vintage pens maiden gas sales agreement
Sydney-listed Vintage Energy on March 23 announced the signing of the maiden gas sales agreement by the ATP 2021 joint venture parties and Australian utility AGL.
The agreement is for the sale of gas produced from the Vali field in Cooper basin from start-up, which is expected mid-2022, through to the end of 2026. Vintage operates the Queensland permit ATP 2021 containing the Vali gas field with a 50% interest. Metgasco and Bridgeport each hold 25% interest.
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The terms of the agreement reflect the heads of agreement between the joint venture and AGL announced in December last year. Production from the Vali gas field, discovered in 2020, is expected to commence following the completion of the field's three wells and connection to the nearby Moomba gas gathering network.
Gas produced during the production appraisal is to be sold to AGL on a mix of firm and variable pricing at market rates, Vintage said. Under the terms of the deal, the joint venture will receive pre-payments totalling A$15mn in three equal tranches from AGL on achievement of milestones as the project moves to first gas.
The volume contracted represents between just 9% and 16% of the field's announced proved and probable reserves. “We expect Vali and adjacent resources, such as our Odin discovery, will supply greater volumes of gas to eastern Australia in the coming years, subject to the lessons acquired during appraisal of initial production performance from the field," Vintage managing director, Neil Gibbins, said.
Vali has been independently certified to hold gross 2P reserves of 101.0 petajoules. The company said it expects early production performance will improve understanding of the field's potential and assist in the determination of optimal future appraisal and development plans.