Metgasco reports interim results from its Phase 2 Production Uplift Program, highlighting steady gas flows from the Odin and Vali fields with ongoing efforts to unlock the Toolachee Formation’s potential.
- Vali-2 well produces variable gas flow with associated water
- Vali-1 stable from Patchawarra but Toolachee formation flow remains negligible
- Vali-3 nitrogen lift operations planned for November
- Total raw gas production at 2.4 million standard cubic feet per day
- Program remains within budget with further analysis underway
Production Uplift Phase 2 Progress
Metgasco Ltd (ASX – MEL) has released interim results from the second phase of its Production Uplift Program targeting the Southern Flank gas fields in the Cooper Basin. The focus remains on initiating and enhancing production from the Toolachee Formation within the Vali gas field, a key component of the company’s growth strategy.
Since commencing Phase 2 operations on 24 September 2025, the company has reported encouraging, albeit mixed, outcomes. The Vali-2 well has begun flowing gas from the Toolachee Formation, albeit at a variable rate of up to 0.25 million standard cubic feet per day (MMscfd) accompanied by water production between 40 and 50 barrels per day. This flow is considered consistent with the clean-up phase, potentially involving residual water cross-flowed from the underlying Patchawarra Formation.
Technical Challenges at Vali-1 and Vali-3
Meanwhile, Vali-1 continues to produce reliably from the Patchawarra Formation, supplying gas under a long-term contract with AGL Energy. However, attempts to initiate significant gas flow from the Toolachee Formation at this well have so far been unsuccessful. Chemical treatment has been applied to address scale issues, but further investigation is needed to understand the lack of flow, with potential causes including damage to perforated intervals from prolonged exposure to completion fluids.
Looking ahead, Vali-3 operations are poised to resume with the installation of a capillary string to enable nitrogen lift, a technique aimed at dewatering and stimulating gas flow. The timing of this intervention depends on the arrival of specialized equipment from overseas, with operations anticipated to recommence in November.
Production and Financial Outlook
Overall, the combined raw gas production from the Odin and Vali fields currently stands at approximately 2.4 MMscfd, with Odin contributing the majority at 1.9 MMscfd. The Production Uplift Program remains within its forecast budget, reflecting disciplined operational management despite the technical hurdles encountered.
Metgasco’s ongoing efforts to unlock the Toolachee Formation’s potential are critical to increasing production volumes and enhancing the company’s revenue base. The analysis of water samples and further flow testing at Vali-2 will be pivotal in determining whether water production diminishes and gas flow improves, which would validate the underlying reservoir quality assumptions.
Bottom Line?
Metgasco’s next moves at Vali-3 and water analysis results at Vali-2 will be key to sustaining production momentum.
Questions in the middle?
- Will water production at Vali-2 decline to enable stronger Toolachee gas flows?
- What specific interventions will unlock Toolachee formation flow at Vali-1?
- When will Vali-3 nitrogen lift operations commence and what impact will they have?