Oil and Gas News

$10m Vintage Energy debt facility completed

Vali-1 Vintage Energy

Vintage Energy has completed the $10 million debt facility alongside the PURE Resources Fund, with the funds available under the facility’s two $5 million tranches having been drawn down.

The facility will supplement cash receipts from prepayments arising from the Vali Gas Sales Agreement (GSA) with AGL to fund capital expenditure to bring the Vali gas field to production.

The key terms of the facility were announced initially on 25 November 2021. The terms include a capacity of $10 million, divided into two $5 million tranches over a 48-month period from initial draw down. Financial covenants of the facility include a required minimum of $1.5 million cash in the bank.

Likewise, 58,823,529 warrants are to be issued to PURE, at 17 cents per share, as approved by shareholders at the 18 March 2022 general meeting. The warrants are exercisable at any time over the 4-year facility term and may be used to repay the debt or for alternate purposes.

The Vali gas field is an unconventional gas development located onshore Australia and is operated by Vintage. The project is presently in commissioning stage and is expected to begin commercial production in late September to October of 2022. Discovered in 2020, Vali lies in block ATP 2021.

Vintage operates the ATP 2021 joint venture with a 50 per cent stake while its additional partners Metagasco and Bridgeport have 25 per cent interest respectively.

Operations to bring the Vali gas field into production to supply AGL under the GSA as of 23 March 2022. Gas produced from the field is to be transported and processed by the South Australian Cooper Basin (SACB) joint venture at its Moomba facility prior to sale.