Vintage Energy finalises $2.1m capital raising to boost Cooper Basin gas production

Gas producer Vintage Energy (ASX: VEN) has successfully completed its shortfall offer, bringing total proceeds raised – including from the preceding entitlement offer – to the targeted $2.1 million.

The company has allocated a total of 328 million shares to new and existing shareholders under the shortfall offer, with each new share allotted a non-tradeable free attaching option exercisable at 0.9 cents and expiring 7 March 2027.

Vintage will primarily use the proceeds to fund the company’s new production uplift program with which it aims to increase gas flow from its Odin and Vali fields in South Australia’s Cooper Basin.

Encouraging support

“We are highly appreciative and encouraged by the support given to the company through the entitlement and shortfall offers,” managing director Neil Gibbins said.

“Successful outcomes from the program will have immediate flow-on benefits to production, sales and, ultimately, cash generation,” he said.

The company has scheduled the production uplift program to commence in mid-July 2025 once it is able to access the site, following recent flooding in the region.

Increasing gas production

Vintage has modelled the program to provide an improvement in raw gas production from Odin and Vali of between 2.1 million standard cubic feet per day (MMscf/d) and 5.6MMscf/d.

This would represent a substantial increase on the average total production of 3.5MMscf/d the company reported for the March 2025 quarter.

The plan includes scale management and the opening of additional producing zones, with Vintage estimating a cash payback of less than three months.

CO2 project opportunity

Vintage and joint venture partner Lakes Blue Energy (ASX: LKO) have identified a strategic opportunity to meet a looming deficit in carbon dioxide (CO2) production, with CO2 facing a structural shortage as local supply tightens and production from industrial sources diminishes.

CO2 plays a number of important roles in the food industry including food preservation and beverage production—with it used to extend shelf life, prevent oxidation and maintain the quality of various food products.

Analysts expect South Australian CO2 production will cease when the Torrens Island power plant is decommissioned in 2026.