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- Vintage HoA to negotiate a gas sales agreement for Cullen-1 in the NT.
- Vault Energy is seeking gas for data centre power generation.
- Agreement subject to positive flow test results
Vintage Energy (ASX: VEN) has entered into a heads-of-agreement (HoA) with Vault Energy for the sale of gas, which may potentially be produced from the Cullen-1 well in the onshore Bonaparte Basin in the Northern Territory.
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The potential sales agreement is dependent on well testing results, with Vault aiming to use gas supplied from the well to generate power for mobile, modular, containerised data centres located onsite near the well.
Vintage holds a 100% interest in Cullen-1, an exploration well drilled in CY14, which recorded strong gas shows over a 1,000 metre interval, but was never tested.
The company acquired the well in exploration permit EP 126 with the intention of proceeding to test Cullen-1; activity in the permit was suspended pending clarification of access necessitated by a subsequent declaration of approximately 50% of the permit, including the Cullen-1 site, as a ‘reserved area.’
Vintage’s MD, Neil Gibbins, said this week’s HoA commits Vintage and Vault to work exclusively together on a gas sales agreement or other commercial arrangement for the supply of gas from Cullen-1.
“Today’s announcement is a promising advance in our long-held plans to test, and hopefully commercialise, Cullen,” Mr Gibbins said.
“Our plans for this had been in suspension from 2019 due to access uncertainty. Now, with the expectation that issue will be resolved in the near future, we have agreement with Vault for collaboration and definition of the commercial arrangements for gas supply from the well in the event of favourable test results,” he said.
Vault director, Jack Boman, said the agreement establishes the framework for Australia’s first natural gas well-to-wire project – converting molecules into electrons and delivering dispatchable power directly into the digital infrastructure sector.
“We are proud to be pioneering this model alongside Vintage Energy and see Cullen as a defining step in demonstrating what the well-to-wire pathway can deliver for Australia.”
Cullen-1 was drilled, logged, cased and suspended by Beach Energy after encountering a 1,000m fractured carbonate sequence with good gas shows. Oil shows were recorded from shallower, tighter sands.
Vintage intends to fund a flow test of the well through farm-out.
Vault Energy is an Australian energy company utilising advanced technologies to transform surplus energy into valuable computing resources.
VEN will open at 0.4¢. Market cap $8.347M.
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