A shake-up is underway in ownership of the Southern Flank joint ventures that cover the Vali and Odin gasfields in the area around the Queensland-South Australian border. 

Operator Vintage Energy has signed a conditional heads of agreement to acquire the 25 per cent stakes that Metgasco holds in the ATP 2021 and PRL 211 joint ventures for $5.9 million.

This came after its receipt of a deemed sale offer for $5.9 million for Bridgeport Energy’s 25 per cent share, due to that group’s ownership transitioning from New Hope Group to a private consortium.

Vintage, which already holds a 50 per cent stake, said the initiative to acquire the Metgasco sale interest was the first step towards an ownership structure positioned to accelerate value creation from the Vali and Odin gas fields.

“We anticipate the chance to participate in the Vali and Odin projects will be highly attractive to parties with an interest in gas supply and the Southern Flank,” managing director Neil Gibbins said.

“There are precious few opportunities to acquire an interest in over 120 PJ of uncontracted 2P gas, onshore, close to existing facilities and with existing gas supply contracts.

“Our appraisal work over the past three years has shown we have reservoirs and wells capable of sustaining reliable long-term supply.

“The lessons acquired on what works and what to avoid have been incorporated into design and plans as we shift to operations prioritising production and economic returns.”

Related: Permit renewal for Vali gas field joint venture

ATP 2021 and PRL 211 collectively hold gross 2P gas reserves of 141 PJ and supply gas to east coast energy markets through contracts with AGL and ENGIE.

More than 80 per cent of the 2P gas reserves are uncontracted and available for development and connection to facilities delivering gas into the Moomba gas gathering system.

Regarding the transactions to acquire the Metgasco sale interest, and possibly the Bridgeport stake, Vintage said it was considering a number of funding options, principally including:

• the introduction of new joint venture partner(s) with the financial resources, capability and interest to work with Vintage and its plans to refocus the Southern Flank gas project from appraisal to production.
• an equity capital initiative to raise funds to support the acquisition consideration.

The binding nature of the heads of agreement with Metgasco is conditional on Vintage securing funding commitments to fulfill its obligations by a target date of December 28; and Vintage completing the purchase of Bridgeport’s 25 per cent interest in PRL 211 and ATP 2021 by a target date of 26 February 2026.

If these conditions are not satisfied by March 31, either party may terminate the heads of agreement.