Vintage Energy Raises $2.1M to Increase Gas Output by up to 5.6 MMscf/d
Vintage Energy has successfully completed a $2.1 million capital raise through fully subscribed Entitlement and Shortfall Offers, aiming to enhance gas output from its Cooper Basin fields.
- Shortfall Offer fully subscribed, raising $2.1 million total
- Funds earmarked for Production Uplift Program at Odin and Vali gas fields
- Expected gas production increase between 2.1 and 5.6 MMscf/d
- Program scheduled to start mid-July 2025 after Cooper Basin flooding
- Shares issued with attached options exercisable at 0.9 cents
Capital Raise Completion
Vintage Energy Ltd (ASX: VEN) has announced the successful completion of its Shortfall Offer, which was fully subscribed, following an earlier Entitlement Offer. Together, these capital raising efforts have secured $2.1 million to fund the company’s Production Uplift Program. This program is designed to increase gas output from the company’s key assets, the Odin and Vali gas fields, located in the Cooper Basin region.
Production Uplift Program Details
The Production Uplift Program aims to boost raw gas production by between 2.1 and 5.6 million standard cubic feet per day (MMscf/d). This increase will be achieved through a series of operational improvements, including better scale management and unlocking additional producing zones within the fields. The program is expected to deliver a rapid return on investment, with a cash payback period estimated at less than three months.
Timing and Operational Context
Implementation of the program is planned for mid-July 2025, contingent on the restoration of site access following recent flooding in the Cooper Basin. This natural disruption had temporarily delayed operations, but Vintage Energy is poised to commence the uplift activities as soon as conditions permit. The company’s Managing Director, Neil Gibbins, expressed gratitude for investor support and optimism about the program’s potential to enhance production, sales, and cash flow.
Shareholder Impact and Market Position
As part of the capital raising, Vintage Energy has issued 328 million new shares under the Shortfall Offer, with each share accompanied by a non-tradeable option exercisable at 0.9 cents until March 2027. This issuance will bring the total number of shares on issue to approximately 2.09 billion. Stralis Capital Partners acted as lead manager for the Shortfall Offer, underscoring market confidence in the company’s growth strategy.
Looking Ahead
With the capital secured and operational plans in place, Vintage Energy is positioned to advance its production goals in the coming months. The success of the Production Uplift Program will be a critical factor in driving the company’s financial performance and market valuation, especially as it navigates the post-flood recovery phase.
Bottom Line?
Vintage Energy’s next challenge will be executing its production boost on schedule amid Cooper Basin’s recovery.
Questions in the middle?
- Will the Production Uplift Program achieve the upper range of its gas output targets?
- How will recent flooding impact the timeline and costs of the program?
- What are the market’s expectations for Vintage Energy’s cash flow following the uplift?
