Vintage Energy has signed an agreement to farm into the Sandstone reservoir sequence of Comet Ridge’s (COI) Galilee Basin permits ATP743, ATP744 and ATP1015 in Australia.
Under the transaction, Vintage is expected to fund around $8.5m in exchange for a 30% interest in the Sandstone targets.
Through the acquisition, the company intends to unlock the Galilee Basin.
Pursuant to the agreement, the farm-out covers only the ‘Deeps Area’, which includes all strata commencing underneath the Permian coals with the Galilee Sandstone sequence as the main target.
The agreement also allows Vintage to earn its proportional share of the 417PJ 3C contingent resource over the Albany Structure alone.
Through a joint venture, the companies intend to explore a series of other sandstone targets to obtain significantly more resources and reserves.
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By GlobalDataA work programme costing up to $15m is set to commence with the drilling of one conventional gas appraisal well on the Albany sandstone structure.
The farm-in agreement is expected to be executed over two stages.
Under the first stage, drilling and post well production testing will be undertaken in addition to well stimulation and subsequent production testing.
The second stage comprises 2D and 3D seismic acquisition aimed at defining further drilling targets in other sandstone targets across the Galilee permits.
