• Vali-2 Toolachee flow indicating variable gas rate of 0.25MMscfd
• 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 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, with the well initially producing water offline against minimal back pressure and gas becoming more evident in the flow. The well is now producing into the facility separator, with a variable gas rate up to 0.25 MMscfd and water rates between 40 and 50 barrels per day. At Vali-1, the well has returned to production from the Patchawarra Formation after isolation and exposure of perforated intervals in the Toolachee Formation resulted in negligible gas flow. A chemical treatment to address scale was run through the downhole production tubing but not into the formation to date. Further investigation and analysis is required to determine why the perforated intervals in the gas bearing Toolachee Formation did not flow significantly. At Vali-3, preparations are underway to resume dewatering operations, with the installation of a capillary string to effect nitrogen lift of fluid to be conducted with the date of commencement dependent on the arrival of some of the equipment from overseas. Production from the Southern Flank gas fields is continuing with raw gas production rates totalling 2.4MMscf/d.

Forecast final costs for the program remain within budget.