PERTH: Vintage Energy Ltd announced that a non-binding Memorandum of Understanding (MOU) has been signed with Supagas Pty Ltd, an Australian based distributor of gases for domestic, industrial, medical and other applications.
In return, the joint venture, Vintage Energy, will give Supagas the opportunity to submit a formal proposal to develop and/or purchase gas from the Nangwarry resource.
Design work is currently underway for an extended production test of the Nangwarry-1 well, which is being targeted for late 2020 (COVID-19 permitting).
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.
Neil Gibbins, Vintage Managing Director, said, “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. We have undertaken a broad range of work relating to the CO2marketand 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 leading supplier of LPG, industrial, medical, specialty and helium gases in Australia. Backed by Taiyo Nippon Sanso Corporation (TNSC), the 4th largest gas supplier in the world, Supagas is rapidly building a reputation for growth and success based on and their customer service offering and quality products that are focused on highly competitive markets.