According to Vintage managing director Neil Gibbins, the company’s results from the December quarter put the “stepping stones” in place for Vintage to transition from an exploration company to an exploration and production company supplying gas to the eastern Australian energy market.
Highlights for the quarter included reserves increasing at Vali gas field, where 2P reserves tripled to 101.0 petajoules (PJ).
Vintage booked contingent resources and successfully flow-tested Odin-1, with a booking of 36.4 bcf.
Results from the flow test exceeded initial expectations, and all zones perforated for testing contributed to the strong overall gas flow.
During the quarter, Vintage also announced a heads of agreement (HOA) with AGL for the sale of 9 to 16 PJ of gas produced from Vali from mid-2022.
A definitive gas sales agreement is currently being agreed by AGL and Vintage.
During the quarter, the company successfully completed a placement of shares to institutional and sophisticated investors to raise $8.5 million, followed by a share purchase plan (SPP).
This resulted in the issue of 100 million shares to new and existing shareholders.
“These capital initiatives, together with payments arising from our agreement with AGL, means Vintage is fully funded to take Vali to production and, with this, commence revenue generation,” said Gibbins.
“We are also fully funded for our follow-up work on Odin and to address the growth opportunities we have identified for exploration in the Cooper and Perth Basin.
“It means we are set for a busy and exciting half year to June, as we finalise the Gas Sales Agreement with AGL, do the work to take Vali to production, and subject to approvals, commence drilling at Cervantes”.
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