2022 Annual Report
Melbourne, Sep 26, 2022 AEST (ABN Newswire) - The twelve months to 30 June 2022 was transformational for Vintage Energy Ltd (ASX:VEN). The year's work put in place almost all the elements required for the company's transformation from exploration company to producer.
Gas reserves were increased by 200%. The company secured its inaugural Gas Sales Agreement ("GSA").
Capital reserves were increased through equity issues and the company's first debt facility. Cash reserves at year-end increased 148% to $18.25 million. The completed Vali gas wells are ready for pipeline connection and production facilities fabrication is underway for installation in the first half of the current financial year.
As a result, Vintage begins FY23 knowing successful execution of its remaining work program at Vali in the coming months will realise its first revenue and recurring cash flow.
Results from the successful appraisal wells Vali-2 and Vali-3, reported in the previous annual report, were analysed and formed the basis of an update to estimates of field reserves independently certified by ERC Equipoise Pte Ltd ("ERCE"). Gross field proved and probable reserves increased from 33.2 petajoules (PJ) to 101.5 PJ. Vintage's share rose from 17 PJ to 51 PJ. An upgrade of this scale, at a time of rising gas prices, represents a substantial increase to the value of the company's resource base, the cash flows that can be expected and Vintage's significance as a gas supplier to the Australian domestic market.
Flow testing of the Odin-1 gas well during the year confirmed the promise of the discovery, with a stabilised flow rate of 6.5 million cubic feet per day from the Epsilon and Toolachee formations. Contingent resources of 36 Bcf (gross joint venture share; Vintage share 17.5 Bcf) were independently certified by ERCE prior to the flow test.
The most significant sphere of activity for the company during the year was the negotiation of a suite of commercial agreements for the processing, transportation and sale of gas from the Vali Gas Field.
Foremost is the GSA executed with AGL which will enable revenue to be generated from the field whilst the analysis and modelling required for a full field development plan is conducted.
There are three noteworthy features of the agreement.
First, it provided for prepayments of $15 million to the ATP 2021 Joint Venture. The prepayments were a key element in the funding of the field capital works to bring the field into production. I would like to acknowledge AGL's willingness to facilitate the entry of new gas suppliers to the east coast market.
Second, the agreement for supply of an estimated 9 PJ to 16 PJ in the period to end-2026, leaves approximately 84% of the field's 101.5 PJ 2P reserves uncommitted and therefore available for future contracting. This is a strong reserve position to hold given the movement in gas prices and forecast shortfall in future supply to east coast Australia.
*To view the full Annual Report, please visit:
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.
Vintage Energy Ltd