- Oil and gas companies Metgasco (MEL) and Vintage Energy (VEN) have completed plans to start fracking the Vali gas discovery
- The joint venture between Vintage, Metgasco, and Bridgeport has contracted Condor Energy Services to conduct fracture stimulation at Vali-1 ST1
- The companies expect fracking to begin in early July, with flow testing to follow shortly after
- Metgasco tacked on just over five per cent today to close worth 4.1 cents each
- Vintage Energy gained over nine per cent to close with shares worth 8.4 cents each
Oil and gas companies Metgasco (MEL) and Vintage Energy (VEN) have completed plans to start fracking the Vali gas discovery.
Fracking, also known as fracture stimulation or hydraulic fracturing, is a process for stimulating the flow of underground oil and gas. The practice involves injecting fluid into the ground at high pressure, creating fractures that gas or oil can flow through more easily.
In the last decade or so, the controversial practice has faced opposition due to its numerous detrimental impacts on the environment. These include groundwater and surface water contamination, noise and air pollution, and increased leakage of methane. In fact, fracking has even been linked to triggering earthquakes.
Nevertheless, the ATP 2021 joint venture between Vintage, Metgasco, and Bridgeport has contracted Condor Energy Services for the job. Condor will mobilise to the Vali-1 ST1 gas exploration well later this month to begin fracture stimulation there in early July.
The companies expect that fracking will take approximately a week to complete. Several weeks of flow testing will follow immediately after to record potential gas flow rates at Vali-1 ST1.
The results will be assessed and incorporated into the joint venture’s commercialisation plan for the Vali asset. Metgasco’s CEO, Ken Aitken, commented on the project.
“Vintage has assembled an experienced quality operational team, and have efficiently progressed the planning work for the stimulation and flow testing of the Vali gas discovery,” Ken said.
“We anticipate a positive gas test result, based on Patchawarra stimulation results in similar quality wells in an adjacent licence,” he said.
“To enable a rapid production tie-in on establishing a commercial gas flow-rate on Vali, the JV has already initiated pipeline engineering design and infrastructure tariff discussions with Santos,” he added.
“I look forward to delivering revenue from Vali within 12 months.”
Metgasco’s share price spiked by 44.44 per cent yesterday. Today, shares in the company closed another 5.13 per cent higher, worth 4.1 cents each.
Vintage Energy shares gained 9.09 per cent today, closing worth 8.4 cents each.