Odin Resources significantly upgraded

  • Sep 16, 2021
  • Metgasco

➢ Independently certified Gross 2C Contingent Resources of 36.4 Bcf (8 Bcf net Metgasco) vs pre-drill estimates of 12.6 Bcf (2.8 net)

➢ Odin field 2C Contingent Resource books a 190% increase in pre-drill 2U gross Prospective Resources, confirming Odin as a material gas discovery

➢ Potential gas production likely to be tied into proposed Vali production hub pipeline

➢ Independent review of Vali Field reserves commenced

The board of Metgasco Ltd (ASX:MEL) (Metgasco or the Company) is delighted to announce the results of the independent certification of Contingent Resources for the Odin Field in the Cooper Basin.

ERC Equipoise Pte Ltd (“ERCE”) independently certified 36.4 billion cubic feet (“Bcf”) of gross 2C Contingent Resources in the Toolachee, Epsilon, Patchawarra and Tirrawarra formations of the Odin gas field located in both PRL 211 and ATP 2021 on the southern flank of the Nappamerri Trough in the Cooper Basin. While all these formations contributed to the certified gas volumes, the majority of the resource is based in the Toolachee and Patchawarra formations.

The working interest of the Contingent Resources represent Metgasco’s share of the Gross Contingent Resources based on its working interest in PRL 211, which is 21.25%, and ATP 2021, which is 25%. Accordingly, a net 2C Contingent Resource of 8 Bcf has been certified by ERCE.

ERCE is an independent consultancy specialising in petroleum reservoir evaluation. Except for the provision of professional services on a fee basis, ERCE has no commercial arrangement with any other person or company involved in the interests that are the subject of this Contingent Resources evaluation.

The work has been supervised by Mr Adam Becis, Principal Reservoir Engineer of ERCE’s Asia Pacific office who has over 14 years of experience. He is a member of the Society of Petroleum Engineers and also a member of the Society of Petroleum Evaluation Engineers.

The Contingent Resources are sub-classified under the Project Maturity Sub-Class as described in the 2018 SPE Petroleum Resources Management System as “Development Unclarified” by ERCE. The key contingencies are a final investment decision on development, committing to a Gas Sales Agreement and any other necessary commercial arrangements, plus obtaining the usual regulatory approvals for production.

The Odin-1 exploration well was drilled with the Schlumberger SLR184 rig and reached total depth at 3,140 metres on 26 May 2021. Extensive gas shows were encountered in sandstones through the primary target Toolachee and Patchawarra formations, as well as a basal sand in the Epsilon Formation. These shows were confirmed as gas pay via the wireline evaluation program, with gas samples successfully recovered from the Toolachee and Epsilon formations.

The well was subsequently cased as a gas discovery for future testing and production, with the first production likely to be targeted from Toolachee Formation, which, due to better reservoir quality, is expected to only require perforation in order to produce. The flow on effect of this is a deferral of capital expenditure that would have been incurred had the Patchawarra Formation initially been fracture stimulated for production. Ultimately the well design will encompass flow from both zones.The presence of gas in the Toolachee, Epsilon and Patchawarra formations, along with success in the Vali Field, clearly indicate the potential for further hydrocarbon discoveries in ATP2021 and PRL211 which would further increase the resource size of this emerging production hub

Odin-1 addressed a structural closure, up dip of Strathmount-1, a well drilled in 1987 and plugged and abandoned after discovering what was then considered a non-commercial hydrocarbon accumulation. The Toolachee Formation at Odin has ~16 metres of structural relief over nearly 6.1 km2, and the Patchawarra Formation has ~23 metres of structural relief over nearly 5.1 km2.