Production Uplift Program Raises Gas Flow by 16% at Odin and Vali Fields
Vintage Energy reports encouraging interim results from its Production Uplift Program at the Odin and Vali gas fields, with effective scale removal boosting gas flow rates and production. Phase 2 operations are set to continue in September, aiming to sustain and enhance output.
- Phase 1 confirms widespread scale accumulation impacting production
- Acid treatment effectively removes scale, improving gas flow
- Combined raw gas production increased from 2.5 to 2.9 MMscf/d
- Phase 2 planned to address remaining scale issues and enhance production
- Program remains on budget with $1.9 million cash balance
Production Uplift Program Progress
Vintage Energy Ltd (ASX – VEN) has provided an update on its ongoing Production Uplift Program at the Odin and Vali gas fields in the Cooper Basin. The program, initiated in July following flood-related access delays, aims to address scale accumulation issues that have been restricting gas flow and production. Despite challenges such as high demand for contractors and equipment post-flooding, the first phase of the program has been successfully completed, delivering promising results.
Phase 1 investigations revealed that scale buildup was more widespread than previously understood, affecting multiple wells and associated facilities. Acid treatments applied to remove this scale have proven straightforward and effective, leading to improved gas flow rates. Notably, the Odin-1 well saw raw gas production increase from 1.8 MMscf/d before treatment to 2.1 MMscf/d after, despite higher downstream network pressures that typically suppress flow rates.
Operational Highlights and Challenges
Alongside Odin-1, the Odin-2 and Vali-1 wells were brought back online without issues, collectively boosting raw gas production to 2.9 MMscf/d from 2.5 MMscf/d prior to the program’s commencement. While Odin-2 demonstrated quicker pressure recovery and sustained flow rates up to 0.5 MMscf/d, Vali-1’s dual-zone production potential remains under evaluation. The opening of a sliding sleeve door to access the Toolachee Formation at Vali-1 did not yield measurable gas flow, likely due to scale hindrance, signaling further treatment is needed in Phase 2.
Vali-3, previously producing from the Toolachee Formation, was reperforated and swabbed, showing encouraging signs of gas presence but requiring alternative dewatering methods to safely resume production. Initial work at Vali-2 confirmed scale presence, with more extensive remediation planned for the next phase.
Financial and Strategic Outlook
Importantly, the Production Uplift Program remains within its capital expenditure budget, with Vintage Energy maintaining a cash balance of $1.9 million as of the latest report. The joint venture partners, including Metgasco Ltd and Bridgeport (Cooper Basin) Pty Ltd, continue to assess longer-term scale management strategies to support sustained production growth and field development.
Looking ahead, Phase 2 will focus on completing scale remediation and production enhancement activities at Vali-1, Vali-2, and Vali-3, with operations expected to recommence in September. Vintage Energy has expressed gratitude to its contractors for their efforts amid high demand and is optimistic about unlocking further production potential from these mature Cooper Basin assets.
Bottom Line?
Vintage Energy’s methodical scale management is unlocking production gains, but the true test lies in sustaining these improvements through Phase 2 and beyond.
Questions in the middle?
- How will Phase 2 interventions impact sustained gas production rates at Vali fields?
- What long-term scale management solutions will the joint venture adopt to prevent recurrence?
- How might downstream network pressures continue to influence production assessments?
