- On January 10, Metgasco’s (MEL) Vali-ST1 gas exploration well reached a depth of more then 2200 metres
- Initial analysis indicated that gas has been intersected in multiple sands
- The estimated farm-in costs is expected to be no more than $5.3. million
- Metgasco’s share price is steady today with shares currently trading for 4.5 cents apiece
On January 10, 2020, Metgasco’s (MEL) Vali-1 ST1 gas exploration well reached a total depth of 3217 metres.
As of 6:00 am this morning (AEDT), the well was being conditioned for further wireline logging.
Initial log analysis indicated that gas has been intersected in multiple sands in the primary Patchawarra Formation target.
To date, this gas saturation has been calculated in the upper section of Patchawarra, above the VC50 coal.
Log data across the section below the VC50 is planned to be acquired at the conclusion of condition operations. This section exhibited strong shows and included some of the best quality sandstone samples while drilling.
“Metgasco believed that the Vali-1 ST1 results provided by wireline logs to date are very encouraging and we still have the lower Patchawarra to evaluate,” CEO Ken Aitken commented.
“We look forward to finishing the well reservoir evaluation and to updating shareholders shortly,” he added.
Following farm-out agreement with Vintage Energy and Bridgeport Energy, Metgasco carried out work at Vali-1 ST1.
The estimated final Vali-1 ST1 gross well cost, despite operational delays, is expected to be in line or less than the farm-in cost cap of $5.3 million.
The joint venture, with Vintage Energy, is currently considering the forward plan with respect to any further log and formation pressure evaluation with respect the previously reported gas shows across the Nappamerri Group, and potential pay in the Toolachee Formation.
At the conclusion of the evaluation there will be a further update to the market.
This new depth follows the 2657 metres drilled in December, 2019.
Metgasco’s share price is steady today with shares trading for 4.5 cents apiece at 12:28 pm AEDT.