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- Metgasco (MEL) executes a definitive gas sales agreement (GSA), which will see sale of all gas produced from its 25 per cent owned joint venture, Vali Field
- The agreement was formed between the ATP 2021 joint venture parties and AGL Wholesale Gas, and will last until the end 2026
- Gas sold to AGL will be through a mixture of firm and variable pricing at market rates
- AGL will pay $15 million in pre payments across three equal tranches upon achievements of project milestones
- Shares close 2.38 per cent higher today at 4.3 cents each
Metgasco (MEL) has executed a definitive gas sales agreement (GSA), which will see sale of all gas produced from its 25 per cent owned joint venture, Vali Field.
The agreement was formed between the ATP 2021 joint venture parties and AGL Wholesale Gas, and will last until the end 2026.
Production from the Vali gas field is expected to start following the completion of the field’s three well and connection to the nearby Moomba gas gathering network.
Gas sold to AGL will be through a mixture of firm and variable pricing at market rates.
AGL will pay $15 million in pre payments across three equal tranches upon achievements of project milestones.
Metgasco Managing Director Ken Aitken said the agreement underpins its transition to becoming a gas producer.
“Commercialisation of Vali represents the culmination of a long process of value creation by Metgasco, from initial application for ATP2021, technical appraisal, farm-out and, with our partners, a highly successful exploration drilling program,” Mr Aitken said.
“The GSA to sell up to 16 petajoules of gas to AGL will deliver significant cash flow to the Joint Venture over the term of the contract and provide the Joint Venture with an upfront payment for funding capital works required to achieve first gas.”
Shares closed 2.38 per cent higher today at 4.3 cents each.
