Capital Raising to Fund Growth
Melbourne, May 31, 2023 AEST (ABN Newswire) - Vintage Energy Ltd (ASX:VEN) announces a $5.6 million capital raising to underpin near term growth in its production and cashflow from the Vali and Odin gas fields. The capital raising comprises a $2.0 million private placement ("Placement") and a $3.6 million fully underwritten accelerated non-renounceable entitlement offer ("ANREO") launched today (together the Placement and ANREO being the "Capital Raising").
The Capital Raising will result in the issue of approximately 111.8 million new ordinary shares ("New Shares"), at the price of $0.05 per share ("Offer Price"). The Entitlement Offer is to be conducted through two phases: an accelerated institutional entitlement ("Institutional Entitlement") which opens today and a retail entitlement ("Retail Entitlement") for eligible retail shareholders as at the record date of Friday 2 June 2023 (further details under the heading "Offer Information" later in this announcement).
Managing Director Neil Gibbins, Chairman Reg Nelson and Director Ian Howarth will be taking up their entitlements in full under the ANREO, totalling ~$0.22 million.
Application of funds
The funds raised through the Capital Raising will be used predominantly to fund the near-term ramp-up of production from its Cooper Basin gas fields Vali and Odin and provide flexibility to target additional growth through appraisal and drilling. The near-term program is designed to take Vali from 1 to 3 producing wells and to bring the Odin gas field online.
Managing Director comment
"The Capital Raising will enable Vintage to consolidate on our recent transition from explorer to producer and help capitalise on what is unprecedented interest from gas buyers for our uncontracted gas" said Managing Director, Neil Gibbins.
"Over the past three months we have recorded our first production and revenue and secured an additional gas contract that will bring a second field, Odin, online later this year.
"We expect the pace to quicken in the coming months as we move from 1 to 4 producing wells; commence our second supply contract; market longer term supply from Odin; and do the work on the Vali full field development plan and Odin appraisal that can underpin further growth.
"Vintage is in a favourable position to participate in the gas contracting opportunities expected to emerge. Our gas is onshore, conventional and located in the Cooper Basin, which has supplied gas to eastern Australia for over 50 years. With over 80% of Vali's 2P reserves uncontracted, and Odin production available from 2025, we are firmly of the belief Vintage gas will feature in new supply agreements to address the shortfalls forecast in eastern Australia supply."
To view the Capital Raising Presentation, 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