Metgasco Ltd (ASX: MEL), an Australian oil and gas exploration and production company, announced interim results from its Production Uplift Program (PUP) at the Odin and Vali gas fields, located within the ATP 2021 and PRL 211 joint ventures. Metgasco holds a 25% interest in these ventures. The company generates sales revenue from gas and gas liquids produced from its Cooper Basin portfolio via long term gas contracts to blue chip gas customers. The announcement details progress made in addressing scale accumulation, which had been impacting production rates.
Fieldwork confirmed the presence of scale in the Odin wells and surface pipeline, as well as in Vali-2. Following acid treatment to remove the scale, total raw gas production from Odin and Vali reached 2.9 million standard cubic feet per day (MMscfd). This compares positively to the 2.5 MMscfd recorded on August 11, prior to the commencement of in-wellbore projects. The initial phase of the PUP involved investigating and remediating scale accumulation at Odin-1, Odin-2, and Vali-1.
The company reported that the removal of scale through acid treatment has proven to be simple and effective, demonstrating the value of scale investigation and removal for enhanced production and long-term performance. Operations at Odin-1 confirmed the recurrence of down-hole scale, but intervention proved worthwhile as the well returned to production at a raw gas flow rate of 2.1 MMscfd, compared to 1.8 MMscfd prior to treatment.
Phase 2 of the work program is anticipated to commence in September, subject to contractor availability. This phase includes further work at the Vali-1 and Vali-2 wells. The joint venture will continue to evaluate long-term solutions for field appraisal and development. Metgasco remains optimistic about the potential for further production uplifts and notes that activities to date are within budget.
