Highlights
- Vintage Energy (ASX:VEN) seeks to raise $2.1 million through a new entitlement offer.
- Capital will be invested in boosting production at Odin and Vali gas fields.
- Successful initial production improvements at Odin-1 well and plans for further advancements.
Vintage Energy (ASX:VEN) has announced a $2.1 million entitlement offer aimed at enhancing its gas production capabilities in the Cooper Basin. The capital raised will be allocated to the Odin and Vali gas fields, both of which are vital assets for the company’s production growth and cash flow generation.
The entitlement offer will allow eligible shareholders to subscribe on a 1-for-4 basis at an issue price of 0.5 cents per share. As part of the offer, each new share will come with a free-attaching option priced at 0.9 cents, expiring two years after the issue date. The subscription price matches the last traded price on 30 January 2025, offering a 4% discount compared to the 10-day volume-weighted average price of 0.52 cents.
Vintage Energy’s immediate focus is on increasing production at its Odin gas field through an extensive scale management program. The company has already made significant strides in boosting gas output at Odin-1. Initial measures to remove accumulated scale have resulted in a surge in production from 1.4 million standard cubic feet per day (MMscf/d) to over 3.0 MMscf/d. Building on this success, Vintage Energy plans to implement permanent scale management solutions, including installing upgraded metering apparatus at Odin-1, which could open up additional opportunities for production improvements across the field.
In addition to scaling up production at Odin, Vintage Energy is also working to unlock further gas potential at its Vali gas field. Gas production from Vali has so far been limited to the Patchawarra Formation, but the company plans to tap into the Toolachee Formation to enhance output. This expansion could provide an important boost to the company’s supply to customers, including Pelican Point Power and AGL Energy (ASX:AGL), both of which rely on gas produced at these fields.
The $2.1 million entitlement offer underscores Vintage Energy’s commitment to scaling its operations and unlocking the full potential of its gas assets. By focusing on effective management and expansion at both the Odin and Vali fields, Vintage Energy is positioning itself to significantly increase its production capacity, paving the way for sustained growth in the coming years.
This strategic move not only supports Vintage Energy’s goal of improving production but also strengthens its financial foundation, setting the stage for future advancements in the Cooper Basin.