• Vali-2 Toolachee flow indicating variable gas rate of 0.25MMscfd and water rate of 30-40 bwpd
• Vali-1 Toolachee chemical treatment unable to initiate flow, Patchawarra gas production re-instated
• Vali-3 Uplift Operations anticipated to begin in November

Metgasco Ltd (ASX:MEL) reports on the second phase of the Production Uplift Program and current production levels from its Southern Flank gas fields. The second phase of the program commenced on 24 September and consists of operations to initiate production from the Toolachee Formation in the Vali gas field. At Vali-2, flow of the Toolachee Formation commenced after isolation of the Patchawarra Formation. The well initially produced water offline against minimal back pressure at approximately 120 barrels per day with gas becoming more evident in the flow. The well is now producing into the facility separator, against system back pressure, with a variable gas rate up to 0.25 MMscfd and water rates between 40 and 50 barrels per day at flowing tubing head pressures between 300 and 350 psig. The Vali-2 flow is considered consistent with clean-up flow of either residual water previously cross-flowed from the Patchawarra Formation and/or water production from a perforated Toolachee zone. At Vali-1, a chemical treatment to address scale was run through the downhole production tubing but not into the formation, resulting in negligible gas flow from the perforated intervals in the gas-bearing Toolachee Formation. Further investigation and analysis is required to determine the cause. Preparations are underway to resume dewatering operations at Vali-3, with the installation of a capillary string to effect nitrogen lift of fluid anticipated to commence in November. Total raw gas production from the Southern Flank gas fields is currently 2.4 MMscfd, with Odin contributing approximately 1.9 MMscfd and the balance from Vali-1 and Vali-2.