Energy

Vintage Energy fully funded to take Vali gas field to production

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By Danica Cullinane - 
Vintage Energy ASX VEN Vali gas field production AGL

Vintage Energy 通过股票配售和股票购买计划筹集了 1200 万澳元。

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Vintage Energy (ASX: VEN) has announced it is well positioned to transition from an explorer to gas producer following various capital initiatives including a recent placement and share purchase plan that raised $12 million.

In the company’s latest quarterly results, managing director Neil Gibbins declared it is now fully funded to take its Vali gas field to production and begin revenue generation.

“We are also fully funded for our follow-up work on Odin and to address the growth opportunities we have identified for exploration in the Cooper and Perth Basin,” he added.

Share purchase plan closes heavily oversubscribed

Vintage completed a placement of shares to institutional and sophisticated investors in December to raise $8.5 million. This was followed by a $2 million share purchase plan, which closed in mid-January heavily oversubscribed with eligible applications totalling $3.44 million.

Shares in both the placement and share purchase plan were issued at $0.085 per share.

Mr Gibbins described the shareholder response to the capital raising initiatives as “an outstanding vote of confidence in the company and an extensive and promising program of well completions, tie-ins, seismic acquisition and drilling”.

He also noted the company’s other recent initiatives including a $10 million debt facility secured with PURE Asset Management and a heads of agreement signed with AGL for a maiden gas contract.

Funds to be used across project portfolio

Vintage said funds raised by the placement and share purchase plan will predominantly be used to fund exploration and appraisal activities including completing and tying in the Odin-1 gas well to the Moomba gas gathering network, 3D seismic and the drilling of two wells in Queensland permit ATP 2021 in the Cooper Basin, drilling of the Cervantes oil prospect in Western Australia’s Perth Basin, and marketing and engineering studies related to the Nangwarry field in South Australia’s Otway Basin.

Mr Gibbins said the December quarter results “put the stepping stones in place for Vintage to transition from an exploration company to an exploration and production company supplying gas to the eastern Australian energy market”.

“It means we are set for a busy and exciting half year to June, as we finalise the gas sales agreement with AGL, do the work to take Vali to production, and subject to approvals, commence drilling at Cervantes,” he said.

Deal inked with AGL for Vali gas supply

In December Vintage announced it had signed a heads of agreement with AGL Wholesale Gas, the a subsidiary of energy retailer AGL Energy (ASX: AGL) for the sale of between 9PJ and 16PJ of gas produced from the Vali gas field from start-up in mid-2022 through to the end of 2026.

Gas supplied under the deal is to be sold at a mix of firm and variable pricing at market rates.

The heads of agreement contains the key commercial terms to form the basis of a detailed, definitive gas sales agreement currently being agreed by AGL and the Vali joint venture, which also includes 25% partners Metgasco (ASX: MEL) and Bridgeport (Cooper Basin) Pty Ltd.

Other highlights of the December quarter included exploration milestones with 2P gas reserves at the Vali field tripled to 101 petajoules and contingent resources booked at Odin-1 totalling 36.4 billion cubic feet of gas.

At the end of the reporting period (31 December 2021), Vintage’s cash and cash equivalents totalled $10.34 million. Proceeds from the share purchase plan were realised after the quarter’s end.