Vintage to raise A$5.6mn for Cooper basin work
Sydney-listed Vintage Energy on May 31 announced a capital raising of A$5.6mn ($3.64mn) to support the growth of its production and cash flow from the Vali and Odin gas fields located in Australia’s Cooper basin.
The capital raising consists of A$2mn private placement and A$3.6mn fully underwritten accelerated non-renounceable entitlement offer (ANREO). The capital raising will result in the issuance of approximately 111.8mn new ordinary shares at a price of A$0.05/share.
The funds raised through the capital raising will primarily be used to ramp up production from the Vali and Odin gas fields. Vintage said it aims to increase the number of producing wells in the Vali field from one to three and bring the Odin gas field online. Additionally, the funds will provide flexibility to target further growth through appraisal and drilling activities, it said.
Managing director Neil Gibbins, chairman Reg Nelson, and director Ian Howarth will be participating in the ANREO by taking up their entitlements in full, amounting to approximately $0.22mn.
Gibbins said the capital raising will help the company capitalise on the strong interest from gas buyers for their uncontracted gas. Vintage recently transitioned from an explorer to a producer, recording its first production and revenue, and securing an additional gas contract for the Odin gas field.
Earlier this month, Vintage signed the first gas supply deal for the Odin gas field with Pelican Point Power Station, a joint venture between Engie Australia and New Zealand (72%) and Mitsui & Co (28%).
Vintage Energy expects an acceleration in activities in the coming months, including an increase in the number of producing wells, the commencement of a second supply contract, marketing of longer-term supply from Odin, and the development plan for the Vali field and appraisal of Odin to support further growth.
The company believes it is well-positioned to take advantage of emerging gas contracting opportunities, considering the onshore, conventional nature of its gas reserves in the Cooper basin, which has been a long-time gas supplier to eastern Australia.
With a significant portion of Vali's 2P reserves uncontracted and Odin production available from 2025, Vintage anticipates securing new supply agreements to address the forecasted shortfalls in gas supply in eastern Australia.