Vintage Energy has received firm commitments for $8.5 million via a share placement to fund its exploration and appraisal activities.
The company is seeking to raise up to $10.5 million through the combination of a placement and a share purchase plan (SPP) through sophisticated and professional investors.
The single tranche placement will comprise 100 million shares at an issue price of 8.5 cents each.
The issue price represents a discount of 13.3 per cent to the last closing price and a 12.5 per cent discount to the five-day volume weighted average price, with settlement expected on 17 December and trading on 20 December.
The SPP will raise up to an additional $2 million at the same issue price in which eligible shareholders will be entitled to subscribe for between $2500 and $30,000 worth of shares.
Participation in the SPP is entirely optional and open to all shareholders and Vintage may accept oversubscriptions or allocate less than the number of shares applied for in the SPP.
Funds received will be used to address the Odin-1 completion and tie in to the Vali-Bow/Beckler pipeline, Cervantes drilling and exploration for oil and gas in ATP 2021.
Vintage Energy managing director, Neil Gibbins, said the company was pleased to see strong support.
“With non-equity funding now lined up to get the Vali Field through to first production and cash flow around the middle of next year, it was important that we secured funds for further exploration of ATP 2021, the drilling of Cervantes, and the completion and tie-in of the Odin-1 well,” he said.
“Odin-1 looks to be one of the better performing wells on test seen in the Cooper Basin for some time, so it is important we complete and tie-in Odin-1 as expeditiously as possible.”
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