Metgasco expects first gas from its mammoth Vali field later this month

Metgasco (ASX:MEL) reported on Monday the company’s potentially mammoth Vali gas field will produce first gas from the Vali-1 well later this month. 

Commissioning of the infrastructure required to pump gas out of the ground and pipe it on to sales is being installed this week, with handover to contractors already executed.

AGL Energy (ASX:AGL) will be the first customer. 

Under an existing contract, Metgasco and its partners at Vali will receive between nine and 16 petajoules (PJ) of gas from the field over a three year period into 2026. 

That gas will first come from the Vali-1 well, with infrastructure at the Vali #2 and #3 wells ongoing. 

Inaugural revenue inbound: management 

“The start of the commissioning phase of Vali-1 marks a long-awaited milestone for Metgasco and our shareholders,” Metgasco chief Ken Aitken said. 

“The Vali field is now within touching distance of first gas and commencement of inaugural revenue.”

Pipelines between the Vali facility and other nearby gas infrastructure are the most crucial elements being installed on-site this week, with all 3 Vali wells being attached to export flowlines. 

The pipeline assets will tie in to the Moomba gas target at the nearby Beckler gas field, which is operated by Santos (ASX:STO) in a partnership with Beach Energy (ASX:BPT). 

JV breakdown 

The Vali play is held in a Joint Venture (JV) between Metgasco and peers, broken down per the following: 

• Vintage Energy (ASX:VEN) - 50% (Operator) 

• Bridgeport Cooper Basin Pty Ltd - 25% 

• Metgasco - 25% 

The Vali gas field was discovered in South Australia’s Cooper Basin back in the first year of COVID-19, 2020. 

Even if you don’t follow energy stocks too closely, the fact Santos have set up shop in the same gas province underscores the profile of the area. 

Notably, attached the project is a P20 probable gas reserve of 101 petajoules (PJ) worth of natural gas, with Metgasco’s share being 25.2PJ. 

That P20 ranking falls short of “proven” confidence rankings, but represents a relatively de-risked estimate. 

Patient Metgasco shareholders are sure to be watching closely. 

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