- Agreement executed with Vintage Energy Pty Limited for Galilee Basin Sandstone Farm-in.
- Funding by Vintage of approx. US$8.5 million will entitle it to 30% interest in the Sandstone targets.
- Key step in unlocking Galilee Basin.
- Transaction is subject to Vintage funding and other conditions.
- Comet Ridge continues to hold the Coal Seam Gas Contingent Resource at 100% equity.
Comet Ridge Limited (COI) is pleased to advise that an agreement to farm-out the Sandstone reservoir sequence of its Galilee Basin permits ATP743, ATP744, and ATP1015 (Galilee Permits) has been executed with Vintage Energy Pty Limited (Vintage).
The farm-out relates only to the ‘Deeps Area’ (Deeps) within each of the Petroleum blocks, which is defined as including all strata commencing underneath the Permian coals (Betts Creek Beds or Aramac coals) with the main target being the Galilee Sandstone sequence, which has previously flowed gas to surface during formation testing at the Lake Galilee 1 (1964) and Carmichael 1 (1995) wells.
Comet Ridge Managing Director, Tor McCaul, said this transaction is a key step in unlocking significant value potential from the Galilee Basin.
Vintage Energy Pty Ltd
Vintage is a private South Australian based company headed by Reg Nelson and Neil Gibbins, who were previously the Managing Director and Chief Operating Officer at the ASX listed Beach Energy Limited. Vintage has been recently established to acquire, explore and develop energy assets principally within Australia. The Company has a highly experienced board and technical team with many decades of management, operational and technical experience in the oil and gas industry.
Comet Ridge Managing Director, Tor McCaul, said he was extremely pleased to welcome the petroleum pedigree that Vintage brings to the Galilee Basin. He said their decades of onshore experience enabled them to recognise the significant potential in the Sandstone sequence in the eastern Galilee Basin and the major part it could play in the supply story for the eastern Australian gas market.
Vintage Energy Managing Director, Neil Gibbins, said that given the Lake Galilee 1 and Carmichael 1 wells had previously flowed gas at low rates during exploration for oil many years ago, he felt the application of latest technology and the utilisation of Nitrogen drilling could unlock significant upside. In addition, he noted that there are additional targets beyond the two wells that had flowed gas in the past.
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/02112017/vintage-energy-to-farm-into-comets-significant-galilee-sandstone-gas-potential/