Vintage Energy (ASX: VEN) Launches $2.1 Million Entitlement Offer to Boost Gas Production at Odin and Vali Fields

February 11, 2025 03:43 PM AEDT | By Team Kalkine Media
 Vintage Energy (ASX: VEN) Launches $2.1 Million Entitlement Offer to Boost Gas Production at Odin and Vali Fields
Image source: shutterstock

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. 


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.