Vintage Energy (ASX:VEN) has received an extension to the proposed acquisition of its partner's interests in the Odin and Vali gas fields in Central Australia.
In mid-November, Vintage revealed it had signed a conditional heads of agreement to acquire the 25% stakes held by fellow joint venturer Metgasco (ASX:MEL) in the ATP 2021 and PRL 211 areas in the Cooper Basin, and committed to consider an irrevocable offer to acquire Bridgeport's 25% stakes in both permits.
The target date for Vintage acceptance for Bridgeport’s 25% interests has now been extended by two months to 28 February 2026. The completion date for this transaction has been extended by approximately one month to 31 March 2026.
Conditions precedent
A number of conditions precedent remain with regard to the proposed acquisition of Metgasco’s interests, including Vintage securing sufficient funding and Metgasco shareholders approving the sale agreement.
In announcing the initial agreement, Vintage managing director, Neil Gibbins, said the potential to participate in the Vali and Odin projects would be highly attractive to parties with an interest in gas supply.
“There are precious few opportunities to acquire an interest in over 120 petajoules (PJ) of uncontracted 2P gas, onshore, close to existing facilities and with existing gas supply contracts," he said,
“Our appraisal work over the past three years has shown we have reservoirs and wells capable of sustaining reliable long- term supply. The lessons learned about what works and what to avoid have been incorporated into the design and plans as we shift to operations prioritising production and economic returns.
If the sales are completed, Vintage will pay Metgasco and Bridgeport $5.9 million each to purchase their respective 25% interests in the two permits that contain the producing Queensland and South Australian fields.
Oil and gas upside
Vintage, the operator, is confident the two permits contain significant exploration upside for both oil and gas.
Geotechnical evaluation of oil exploration potential in the ATP 2021 permit, which contains the Vali gas fields, has identified a promising oil opportunity for follow-up.
Altar, a dual-target oil and gas well, has been identified as the most preferred drilling candidate, with Vintage and its ATP 2021 joint venture partners looking to add non-operating farminees to fund the drilling of the well.
