Metgasco’s Production Uplift Program Raises Gas Flow by 16% to 2.9 MMscfd

Production Uplift Program Progress

Metgasco Ltd (ASX – MEL) has reported encouraging interim results from its Production Uplift Program (PUP) at the Odin and Vali gas fields in the Cooper Basin. After overcoming post-flood access challenges and contractor shortages, the company has completed the first phase of its scale investigation and remediation efforts. This phase confirmed that scale buildup; a common issue in gas wells; was more widespread than initially thought, affecting multiple wells and surface infrastructure.

Using acid treatments to dissolve the scale, Metgasco successfully restored gas flow, increasing combined raw gas production from 2.5 million standard cubic feet per day (MMscfd) before shutdown to 2.9 MMscfd after treatment. This improvement, achieved despite higher downstream network pressures that typically reduce flow rates, underscores the effectiveness of the intervention and the potential for further gains.

Well-Specific Insights and Challenges

At Odin-1, scale removal proved particularly beneficial, with production rising from 1.8 to 2.1 MMscfd. The recurrence of scale in production tubing highlights the need for ongoing management strategies. Odin-2 also showed positive responses, sustaining flows up to 0.5 MMscfd post-treatment, though longer-term data under stable pressure conditions will be needed for a full assessment.

Vali-1, completed as a dual-zone producer, revealed scale accumulation in the Toolachee Formation, which currently impedes gas flow. The joint venture plans to address this in Phase 2, potentially using similar chemical treatments. Meanwhile, initial work at Vali-2 confirmed scale presence, and efforts to reinstate production at Vali-3 showed promising signs, though safety concerns halted swabbing operations. Alternative dewatering methods are under consideration to resume production safely.

Looking Ahead – Phase 2 and Beyond

The second phase of the PUP is slated to begin in September, subject to contractor availability. It will focus on further scale remediation, particularly targeting the Toolachee Formation at Vali-1 and Vali-2, and on safely restoring production at Vali-3. The joint venture remains committed to evaluating long-term solutions to sustain and enhance production from these assets.

Importantly, the program remains within its capital expenditure budget, reflecting prudent management amid operational complexities. Metgasco’s ongoing efforts to optimize production from its Cooper Basin portfolio align with broader market demand for reliable East Coast gas supplies and position the company to unlock significant value from its 2P reserves.