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    Vintage Energy completes A$10mn debt facility

Summary

The debt facility will form part of the funding of the initial capital requirements of the Vali field in Queensland over the next two years.

by: Shardul Sharma

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Vintage Energy completes A$10mn debt facility

Australia's Vintage Energy has completed the A$10mn ($6.95mn) debt facility with the Pure Resources Fund announced in November last year, the company said on June 14. Funds available under the facility's two A$5mn tranches have been drawn down.

The facility has a term of 48 months from the first drawdown and carries an interest rate of 11%, reducing to 8.5% once certain operational cash flow conditions are met. 

The facility will supplement cash receipts from prepayments arising from the Vali gas sales agreement with AGL to fund capital expenditure to bring the Vali gas field into production. The first gas is expected from Vali in late September- October 2022.

Vintage and its joint venture partners, Metgasco and Bridgeport, will supply all of the gas produced from the field between the middle of 2022 to the end of 2026 to AGL Wholesale Gas, a unit of Australian gas retailer AGL. This is anticipated to be a minimum of 9 petajoules (PJ) and up to 16 PJ of gross sales gas over the contract term, to be sold on a mix of firm and variable pricing at market rates.

Vintage operates the Queensland permit ATP 2021 containing the Vali gas field with a 50% interest. Metgasco and Bridgeport each hold 25% interest.