Vintage Energy Sees Promising Gas Flows in Second Phase at Vali Field
Vintage Energy reports encouraging interim results from its Production Uplift Program’s second phase, with initial gas flows emerging from the Toolachee Formation at the Vali gas field.
- Second phase targets Toolachee Formation production at Vali gas field
- Vali-2 well shows increasing gas flow amid residual liquid clean-up
- Technical challenges persist at Vali-1 and Vali-3 wells
- Southern Flank fields producing 2.4 MMscf/d total raw gas
- Program remains on budget with ongoing operational adjustments
Production Uplift Program Advances
Vintage Energy Ltd (ASX – VEN) has released interim results from the second phase of its Production Uplift Program, focusing on unlocking gas production from the Toolachee Formation at the Vali gas field in the Cooper Basin. This follows the initial phase announced in September 2025, with the current phase commencing on 24 September.
The Vali gas field has been producing reliably from the Patchawarra Formation since early 2023, supplying gas under a long-term contract with AGL Energy. The new phase aims to tap into the Toolachee Formation, which is understood to contain high-quality gas sands, potentially boosting output.
Encouraging Flows at Vali-2 Amid Residual Liquids
At the Vali-2 well, initial operations involved isolating the Patchawarra Formation to focus on the Toolachee. Early flows included water at around 120 barrels per day, transitioning to gas flows reaching up to 0.25 million standard cubic feet per day (MMscf/d). The presence of residual liquids from the Patchawarra Formation appears to be influencing flow rates, but ongoing clean-up is expected to improve gas output.
These flow characteristics suggest strong underlying reservoir pressure and permeability, which bodes well for future production increases once residual fluids are cleared. Water sampling is underway to better understand the source of the fluids and inform further interventions.
Technical Challenges at Vali-1 and Vali-3
Meanwhile, Vali-1 has returned to production from the Patchawarra Formation after attempts to produce from the Toolachee Formation yielded negligible gas flow. Investigations point to possible deterioration of perforated intervals due to prolonged exposure to completion fluids and equipment issues. Vintage Energy is assessing chemical and mechanical methods to restore productivity in this zone.
At Vali-3, dewatering operations were paused following the detection of produced gas, prompting a shift to nitrogen lift techniques using a capillary string. The timing of this operation depends on equipment arrival, expected in November.
Current Production and Outlook
Production across the Southern Flank gas fields currently totals approximately 2.4 MMscf/d, with the Odin field contributing the majority at 1.9 MMscf/d. Vintage Energy reports that the Production Uplift Program remains within budget, with ongoing operational adjustments and technical analyses aimed at optimising output from the Toolachee Formation.
Managing Director Neil Gibbins expressed cautious optimism, highlighting the encouraging early gas flows and the company’s commitment to resolving technical challenges to unlock the full potential of the Toolachee sands.
Bottom Line?
Vintage Energy’s next steps in resolving technical hurdles will be pivotal in translating early promise into sustained production growth.
Questions in the middle?
- What specific chemical or mechanical methods will Vintage deploy to restore Toolachee production at Vali-1?
- How soon can nitrogen lift operations at Vali-3 commence, and what impact will they have on production rates?
- Will the Toolachee Formation ultimately deliver gas volumes that significantly boost Southern Flank output?
