- Metgasco (MEL) says it spent much of the June quarter focussed on the three-well drilling campaign at its Cooper Basin assets in far-east Queensland
- The company posted its quarterly report on Friday, revealing it spent $1.5 million on exploration after drilling and casing both the Vali-2 and Vali-3 wells
- Drilling also took place at the Odin-1 joint venture well, and MEL says net gas pays have been located in each well
- The company expects a reserve/resource upgrade to be completed for the wells, as well as a final investment decision on the Vali Field later this year
- MEL shares are trading steady at 2.3 cents each
Metgasco (MEL) says it spent much of the June quarter focussed on the three-well drilling campaign at its Cooper Basin assets in far-east Queensland.
The company posted its quarterly report on Friday, revealing it spent $1.5 million on exploration during the three-month period.
Those funds went towards drilling and casing the Vali-2 and Vali-3 wells, which MEL has a 25 per cent working interest in
It also went towards drilling the Odin-1 well, a joint venture project that Metgasco can earn a 21.25 per cent stake in.
Results from the wells include 150 metres of net pay from Vali-2, 172.5 metres of net gas pay from Odin-1 well, and gas pays located in the Patchawarra formation of Vali-3.
Metgasco CEO Ken Aitken said the drilling campaign was extremely successful.
“Metgasco’s operational activities over the last quarter have been very successful, with the Cooper Basin three-well drilling program delivering a 100 per cent success rate and the associated gas discoveries exceeding pre-drill expectations,” Mr Aitken said.
The company ended June with $553,000 in the bank, before announcing in early July it was raising $4.58 million in extra cash via an entitlement offer.
Looking ahead, MEL said it expects a reserve/resource upgrade to be completed for the wells, as well as a final investment decision on the Vali Field.
“The joint venture partners are now prioritising an independent reserve/resource review which is anticipated to increase previously booked gas reserves,” Mr Aitken said.
“This year’s drilling results are expected to support Metgasco and its partners progressing to final investment decision for the Vali/Odin gas discoveries later this year, paving the way for future gas sales revenue in the first half of 2022.”
MEL shares ended the week trading steady at 2.3 cents each.