Vintage Energy Streamlines Focus with $1.25M Victorian Asset Sale

June 16, 2025 12:38 PM AEST | By Team Kalkine Media

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Vintage Energy Streamlines Focus with $1.25M Victorian Asset Sale — Image source: shutterstock

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Highlights

Vintage Energy (VEN) divests Victorian gas permit for $1.25 million

Proceeds support Vali and Odin gas field upgrades in Cooper Basin

Strategic focus remains on production uplift and CO₂ supply planning

Vintage Energy (ASX:VEN) has enhanced its financial footing with the sale of its 25% interest in the non-core Victorian gas permit PEP 171, located in the Otway Basin, for $1.25 million. The transaction follows a recent $2.1 million capital raise, further strengthening the company’s balance sheet ahead of key gas field upgrade initiatives.

Sharpened Focus on Strategic Gas Assets

With this move, Vintage Energy redirects its operational focus towards its core Southern Flank gas fields project in the Cooper Basin, including the Vali and Odin fields. The divestment supports resource consolidation and provides capital flexibility as the company prepares for a production uplift campaign scheduled for mid-July 2025.

The PEP 171 permit, situated along the Victorian-South Australian border, holds promising gas potential. However, current priorities demand attention toward assets with immediate monetisation prospects. Company leadership confirmed that while the PEP 171 project still aligns with broader eastern Australia gas needs, the immediate opportunity lies in boosting existing production infrastructure.

Vali and Odin Upgrade Plans

Vintage Energy’s upcoming production uplift initiative aims to increase gas output from the Vali and Odin fields by 2.1 to 5.6 million standard cubic feet per day (MMscf/d). The program is designed to unlock new production zones and optimise field performance. A quick return on investment is anticipated, with an estimated cash payback period of under three months.

The Vali and Odin projects are pivotal to Vintage’s gas delivery strategy in the Cooper Basin, and the uplift is expected to play a vital role in meeting regional energy demands efficiently.

Advancing CO₂ Supply Strategy

Alongside gas field developments, Vintage continues to progress the Nangwarry CO₂ project in South Australia. In partnership with Lakes Blue Energy (ASX:LKO), the company is targeting a long-term solution to address the anticipated shortage in carbon dioxide supply.

This effort gains urgency as South Australia prepares for the decommissioning of the Torrens Island power station in 2026—a major source of CO₂. The Nangwarry development is poised to help meet industrial demand as legacy supply diminishes.

Vintage Energy's recent actions reflect a strategic shift to maximise value from core assets while contributing to key energy needs in gas and industrial CO₂. With its financial foundation bolstered and critical projects underway, the company is positioning itself for operational growth and resource optimisation.

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