Vintage Energy sells Victorian PEP 171 gas permit interest for $1.25m to focus on Vali and Odin upgrades
Vintage Energy (ASX: VEN) has further solidified its cash position with the sale of its 25% interest in non-core onshore Victorian permit PEP 171 in the Otway Basin for $1.25 million.
Proceeds from the sale add to the $2.1m Vintage recently received in a capital raising, as the company focuses on upgrading its Vali and Odin fields in the Cooper Basin.
The large PEP 171 permit is located on the Victorian side of the border with South Australia.
Southern Flank gas fields
Managing director Neil Gibbins said the sale of the PEP 171 interest would help the company concentrate resources on the advancement of its Southern Flank gas fields project in the Cooper Basin and the Nangwarry contingent resource in the Otway Basin.
“We remain enthusiastic about the gas prospectivity of PEP 171 and its relevance for eastern Australia’s gas supply needs—however, the existing cash generation and expenditure requirements of our Southern Flank gas fields are an immediate priority for Vintage Energy,” Mr Gibbins said.
“The sale, together with the [recent] capital raising and our expenditure reduction measures, places Vintage on a stronger footing as we approach execution of the production uplift program and other initiatives.”
Upcoming uplift program
Vintage’s main focus remains its production uplift program at Odin and Vali, which the company plans to begin in mid-July 2025.
The program will endeavour to provide an increase in raw gas production from the two fields of between 2.1 million standard cubic feet per day (MMscf/d) and 5.6MMscf/d.
Vintage is looking to manage scale and open additional producing zones with the program and estimates a cash payback period of less than three months.
SA CO₂ opportunity
Vintage is continuing to develop its Nangwarry project in South Australia, while the company and joint venture partner Lakes Blue Energy have also identified a strategic opportunity to meet the looming deficit in carbon dioxide (CO₂) production.
The two are pursuing a long-term supply solution for this essential input, with CO₂ facing a structural shortage as local supply tightens due to diminishing output from industrial sources.
South Australian CO₂ production will cease with the decommissioning of the Torrens Island power plant in 2026.