Vintage Energy to Process CO2 from South Oz Permit
Sydney-listed Vintage Energy has signed a non-binding memorandum of understanding with Supagas to process CO2 from the Nangwarry resource in PEL 155 onshore Otway Basin in South Australia, Vintage said on August 25.
Under the MoU, Supagas will fund work associated with the preliminary design and costing of facilities for processing Nangwarry CO2, which will allow for the production and delivery of food grade standard CO2. In return, the joint venture will give Supagas the opportunity to submit a formal proposal to develop and/or purchase gas from the Nangwarry resource, Vintage said.
Design work is currently underway for an extended production test of the Nangwarry-1 well, which is being targeted for late 2020. “The MoU signed with Supagas supports the development, production and purchase of Nangwarry CO2, and is a reflection of the confidence the joint venture has in the Nangwarry discovery,” the company said.
The Nangwarry-1 well is a 50:50 joint venture between Otway Energy (a subsidiary of Lakes Oil) and Vintage. The cost of the well is being partially funded through an A$4.95mn (US$3.55mn) grant under the South Australian government’s Petroleum Accelerated Exploration programme.
"The MoU with Supagas shows a clear interest by all parties involved to move the Nangwarry CO2 discovery to the next phases of testing and production,” Neil Gibbins, Vintage managing director, said. “We have undertaken a broad range of work relating to the CO2 market and are confident that a strong market exists for a stable and consistent supply of food grade standard CO2. With the depletion and abandonment of the phenomenally successful Caroline-1 well in 2017, we are hopeful that Nangwarry-1 will be able to fill the supply gap left by Caroline-1."
Supagas is a supplier of LPG, industrial, medical, specialty and helium gases in Australia and is backed by Taiyo Nippon Sanso Corporation.