Annual Report to Shareholders
Melbourne, Sep 30, 2020 AEST (ABN Newswire) - Vintage Energy Limited (
ASX:VEN) present the report together with the financial statements of the Company for the year ended 30 June 2020 and the Independent Audit Report.
Significant changes in the state of affairs
Two discoveries were made during the year - natural gas at the Vali-1 ST1 well, in the ATP 2021 permit of the Cooper and Eromanga Basins, and CO2, at the Nangwarry-1 well, in the PEL 155 permit, onshore Otway Basin.
Both discoveries have the potential to be on production once appropriate test work and infrastructure connection is approved and completed.
The Company also raised $3,000,000 ($2,250,000 from a share placement and $750,000 from a Share Purchase Plan), the funds from which were primarily used to fracture stimulate and flow test the Vali-1 ST1 gas discovery.
Subsequent events
Fracture stimulation of the Vali-1 ST1 well over six stages was completed, with five stages in the Patchawarra Formation and one in the deeper Tirrawarra Sandstone.
Successful flow testing of the Vali-1 ST1 well delivered a stabilised raw gas rate, over a two-day period, of 4.3 MMscfd through a 36/64" choke at 942 psi (flowing well-head pressure).
A development concept for the Vali Field was completed and estimates a field life of around 20 years.
A recoverable CO2 booking for the Nangwarry-1 discovery was made, with a gross Best Case of 25.1 Bcf recoverable CO2 estimated by ERCE.
On 9 July 2020, the Company issued 10,694,444 shares to Directors at $0.036 per share, as part of the share capital placement announced on 30 April 2020. The shares were issued after an Extraordinary General Meeting on 29 June 2020 obtained shareholder approval for the participation of Directors in the placement. Funds for the placement had been received prior to 30 June 2020.
Mr. Ian Northcott resigned as Alternate Director to Mr. Ian Howarth, effective 11 August 2020.
On 17 September 2020, the Company announced a share placement and rights issue at $0.06 per share to raise approximately $15,000,000. The funds raised are to be used for:
- Vali Field connection into the Moomba gathering system;
- Drilling of two further Vali Field wells;
- Drilling the Odin prospect;
- Testing the Nangwarry CO2 discovery;
- Long lead items for drilling the Cervantes prospect; and
- Geological, geophysical and engineering studies.
Likely developments, business strategies and prospects
The Company will continue to develop its existing suite of exploration assets and will work to identify other assets and corporate opportunities that will grow the Company and enhance shareholder value.
To view the Annual Report, please visit:
https://abnnewswire.net/lnk/E50641FT
About Vintage Energy Ltd
Vintage Energy Ltd (ASX:VEN) has been established to acquire, explore and develop energy assets principally within, but not limited to, Australia, to take advantage of a generally favourable energy pricing outlook.
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