Vintage Cements Gas Sales Deal With AGL, Gets 1st Pre-Payment

Vintage Cements Gas Sales Deal With AGL, Gets 1st Pre-Payment
Vintage Energy has fulfilled all conditions under a gas sales agreement with AGL – enabling the call on the first two of three $5 million pre-payments from AGL under the deal.

Vintage Energy and its Vali field joint venture partners have fulfilled all conditions under a gas sales agreement with AGL – enabling the JV to call on the first two of three $5 million pre-payments from AGL under the deal.

The first two $5 million pre-payments will be used to fund capital works at the Vali field in the Cooper Basin to bring it to first gas.

Vintage owns 50 percent and is the operator of the Vali gas field, while joint venture partners Metgasco and Bridgeport hold 25 percent each.

Securing an agreement for the processing of Vali gas was a condition precedent to the AGL gas supply contract announced on March 23, 2022.

The Processing Agreement includes the terms agreed for the transportation of gas from Vali into the Moomba gas facility and its processing for supply to AGL for the duration of the GSA.

As announced previously, the JV has contracted to supply between 9 PJ and 16 PJ to AGL over approximately four and a half years. The GSA represents between 9 percent and 16 percent of the field's announced Proved and Probable Reserves.

Production from the Vali gas field, discovered in 2020, is expected to begin following the completion of the field's three wells and connection to the nearby Moomba gas gathering network.

Vintage Managing Director Neil Gibbins said the execution of the Processing Agreement ‘had taken Vintage to a significant point in its history.’

"We have now met the conditions for the company's first Gas Sales Agreement. Through this Agreement and the fieldwork that has commenced, we expect to be generating our first revenue and operating cash flow in the near future.

"We are fully funded for the work to be done and are concentrating our efforts on completing the construction and connection work program safely and efficiently," Gibbins said.

Earlier this month, a fracture stimulation campaign began at the field and is targeting the Patchawarra formation that intersects multiple zones of the Vali-2 and Vali-3 wells. First gas from the Vali field is targeted for mid-year.

To contact the author, email username.eldina@gmail.com


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