Metgasco has signed a heads of agreement (HoA) with Australian company Vintage Energy covering the ATP 2021 permit in Queensland’s onshore Cooper-Eromanga basins.
Under the agreement, Vintage will earn a 50% stake in the permit by funding 65% of the cost of the first well, up to a gross cost of A$5.3m ($3.64m) and past exploration costs of $527,800.
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Additionally, the company will invest up to $70,000 of 2D and 3D seismic reprocessing to better define exploration leads in the permit.
The 370km² ATP 2021 permit has oil and gas fields within 20km of its boundary that have produced more than 600Bcf of gas and 11mmbbl of oil.
It is partially covered by 2D and 3D seismic, with three main Permian gas prospects and several Jurassic oil prospects and leads already identified.
The first well is expected to be drilled this year, likely in the Vali prospect.
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By GlobalDataVintage Energy managing director Neil Gibbins said: “The ATP 2021 farm-in is an excellent fit for Vintage mainly due to our technical team’s experience in exploring, appraising and developing oil and gas assets in the Cooper/Eromanga Basins.
“Having a high-quality joint venture partner such as Metgasco is an added benefit and positions the joint venture well in relation to commercialising this highly prospective and underexplored permit.”
Vintage will project manage the planning and drilling of the first well with immediate effect.
The permit is located close to pipelines and facilities.
Metgasco noted that the agreement reached with Vintage secures additional project funding to deliver drilling of at least one exploration well this year.
