Vintage Energy completes entitlement offer to support Cooper Basin gas project upgrades
Cooper Basin gas developer Vintage Energy (ASX: VEN) has raised additional funds to support upgrades at its Odin and Vali gas fields.
The company has completed the entitlement offer announced on 31 January and commenced a shortfall offer.
Stralis Capital Partners was lead manager to the entitlement offer and is also in charge of conducting the shortfall offer.
Shortfall take-up
A total of $0.6 million has so far been raised by the entitlement offer and the shortfall offer, of which $0.45m is attributable to the entitlement offer.
To date, the company has received applications for 30,000,000 shortfall shares.
It will issue the new shares today and they will commence trading on 10 March.
‘Clear purpose’
“The offer had a clear purpose to address known impediments and opportunities for higher production,” managing director Neil Gibbins said.
“Vintage acknowledges and appreciates the support demonstrated by participating shareholders.”
“We look forward to pushing on with the production uplift program in the coming months and reporting on results.”
New Vali formation
Vintage is targeting an increase in near-term production by tapping into a new gas flow formation at Vali.
The company expects its proposed uplift program to increase gas production through scale management measures at the Odin and Vali fields and the addition of gas production from the Toolachee formation at Vali.
Vintage has already seen the benefit of initial measures to remove the accumulated scale at the Odin-1 well, with raw gas production from the field initially increasing from 1.4 million standard cubic feet per day (MMscf/d) to over 3.0 MMscf/d.
Permanent solution
The proposed program will install permanent scale management solutions at Odin-1 and the field’s metering apparatus.
It will also determine if there are further opportunities for production improvement by removing scale affecting other installations.
The Vintage-led joint ventures supply gas from Odin and Vali to Pelican Point Power – a joint venture between ENGIE (72% owner) and Mitsui (28%) – and AGL Energy (ASX: AGL).