May Gas Production Hits 100 MMscf, Highest Since January for Metgasco
Metgasco’s Odin and Vali gas fields delivered their strongest monthly production in nearly six months, setting the stage for a planned Production Uplift Program starting mid-July.
- May raw gas production reached 100 MMscf, highest since January 2025
- Operational improvements increased output despite natural decline expectations
- Production Uplift Program to commence mid-July, targeting 2.1 to 5.6 MMscf/d increase
- Program fully funded following recent shareholder entitlement offer
- Cash payback for uplift initiatives expected in under three months
Strong May Production Signals Momentum
Metgasco Ltd (ASX – MEL) has reported a notable uptick in gas production from its Odin and Vali fields, with May 2025 output reaching 100 million standard cubic feet (MMscf) of raw gas. This marks the highest monthly production since January, reflecting a positive reversal against the natural decline typically expected in mature fields.
The increase, representing an 8% rise from April’s 92 MMscf, was driven by a series of operational enhancements implemented ahead of a more comprehensive Production Uplift Program. Average daily production rose to 3.23 MMscf, a 5% improvement month-on-month, underscoring the effectiveness of these early interventions.
Operational Measures Lay Groundwork for Growth
Key operational steps included reducing back pressure in the gathering system, cycling the Odin-2 well to build pressure, and improving flow and instrumentation reliability to minimize unnecessary shutdowns. These measures helped Odin’s daily production climb from 2.30 to 2.47 MMscf, while Vali’s output held steady with only a marginal decline.
Metgasco’s Managing Director, Ken Aitken, highlighted the Vintage Energy-operated team’s role in optimising production ahead of the upcoming program. He emphasized that the company is fully funded for the Production Uplift Program following a successful shareholder entitlement offer, providing financial confidence for the next phase.
Production Uplift Program – Ambitious Yet Pragmatic
Set to commence in mid-July, the Production Uplift Program targets a substantial increase in raw gas output, estimated between 2.1 and 5.6 MMscf per day. The program focuses on addressing scale accumulation issues, opening additional production intervals in the Toolachee Formation at Vali, and conducting swabbing and re-perforation at the Vali-3 well.
Importantly, the program’s financial model forecasts a cash payback period of less than three months, suggesting a rapid return on investment. This is a compelling proposition for investors, especially given the undersupplied East Coast gas market that Metgasco’s Cooper Basin assets serve.
Strategic Positioning in a Competitive Market
Metgasco’s transition from explorer to producer is gaining traction, with these operational improvements and planned interventions positioning the company to capitalise on existing infrastructure and long-term gas contracts. The joint venture structure, involving Vintage Energy and Bridgeport Cooper Basin, leverages combined expertise to optimise field performance.
Looking ahead, the success of the Production Uplift Program could unlock further development of 2P reserves estimated at 36.55 petajoules, enhancing Metgasco’s footprint in the Cooper Basin and its contribution to Australia’s energy supply.
Bottom Line?
As Metgasco prepares to launch its Production Uplift Program, the market will be watching closely to see if operational gains translate into sustained production growth and revenue uplift.
Questions in the middle?
- Will the Production Uplift Program achieve the upper range of its production increase estimates?
- How will the joint venture partners coordinate operational and financial responsibilities during the program?
- What impact will increased production have on Metgasco’s revenue and cash flow in the coming quarters?
