Vintage Energy Ltd. · ASX:VEN
Vintage Energy — Investor Presentation (March 2024)
41 slides from Vintage Energy's investor presentation, Mar 25, 2024
Slide 1: Upscaling Odin
Upscaling Odin Drilling to take Odin gas field to self-sustaining cash generation PROVEN PROSPECTIVITY INFRASTRUCTURE IN PLACE GAS SUPPLY CONTRACTS Vali-2 Stimulation operations
Slide 2: Important notice and disclaimer
Important notice and disclaimer Summary information This presentation has been prepared by Vintage Energy Limited (“Vintage” or the “Company”), with the purpose of providing general information about the Company as at 25 March 2024. This presentation does not purport to be all inclusive or to contai
Slide 3: Important notice and disclaimer
Important notice and disclaimer Future performance This presentation includes both information that is historical in character and information that consists of forward-looking statements. Forward-looking statements are not based on historical facts, but are based on current expectations of future re
Slide 4: Vintage Energy is ready to drill 2 appraisal wells to transform the Odin gas field
Vintage Energy is ready to drill 2 appraisal wells to transform the Odin gas field into a self-sustaining, cash-generating operation. Odin-2 & Odin-3 will target proven reservoirs for supply into an existing, attractive gas supply contract from July 2024. Capital of $8 million is sought to fund this
Slide 5: Capital raising investment case
Capital raising investment case High-impact, potential cash generating, imminent catalyst, long-term upside • 2x – 3x uplift in Odin gas production • Supply into existing attractive gas contract High impact results1 • Vintage exempt from $12/GJ gas cap • Gas supply contract extends to December 2026
Slide 6: Odin appraisal
Odin appraisal Drilling targeting increased gas production and cash generation from proven reservoir • Attractive economics in existing gas supply contract • Gross cost drill, complete and connect ~$9 million (Vintage share: 50%)1 • Estimated time to drill: 3-4 weeks1 • Targeting first gas from Odin
Slide 7: Indicative Odin program
Indicative1 Odin program Rig contracted, program in place for near term results and cash return Event Expectation Rig mobilisation to Odin-2 (SLR 184) April 2024 Odin-2 spud April Odin-2 results May Odin-32 Spud May2 Odin-3 Results June Odin-2 connection to Vali-Beckler pipeline July Commissioning J
Slide 8: Southern state gas market fundamentals
Southern state gas market fundamentals Gas prices are attractive and supply shortfalls are forecast to grow Gas commodity prices for 2024 supply to southern states1 Southern states forecast gas production and demand 2025 - 20351 Post intervention prices ranging ~ $12/GJ - $18/GJ 8 Capital raising pr
Slide 9: Sources and uses of funds
Sources and uses of funds Sources $m Uses $m Placement 1.3 Drill Odin-22 & Odin-3 5.2 Entitlement offer 6.7 Perforate, complete & connect3 2.0 Capital raising costs (0.6) Working capital other costs 0.8 Total sources 8.0 Total uses 8.0 1 Odin 2, once drilled, will satisfy the commitment obligations
Slide 10: Background
Background a VINTAGE ENERGY
Slide 11: Vintage Energy is an Australian oil and gas producer and explorer
Vintage Energy is an Australian oil and gas producer and explorer. Just 5 years old, Vintage: • has discovered 2 gas fields, Vali and Odin; • is supplying gas to east coast Australia under long term supply contracts with key utilities; and • has approximately 40 PJ of uncontracted 2P gas reserves in
Slide 12: Vintage Cooper Basin credentials
Vintage Cooper Basin credentials Deep experience in exploration and production. Proven success rate. 2018: Float Successful Experienced • Farmin to Southern Flank • Board, management and technical • 4 wells, 100% success rate team with proven Cooper Basin 2019: Farm-in to Southern Flank & experience
Slide 13: Company overview
Company overview Onshore gas projects. Exploration acreage offering high chance of technical and commercial success. 1 Cooper Basin gas operations Exploration Production • Vali commenced Feb 23 3 Cooper Basin 6 • Odin commenced Sep 23 Reserves & resources 4 Otway Basin • 49 PJ 2P sales gas and ethan
Slide 14: Board
Board Chairman Managing Director Director Director Reg Nelson Neil Gibbins Ian Howarth Nick Smart Reg Nelson has a distinguished career in the Neil Gibbins has over 40 years of technical Ian Howarth created Collins Street Media, one of Nick Smart has over 40 years of corporate Australian petroleum i
Slide 15: Corporate overview
Corporate overview Key figures Shareholders by type Shares on issue1 million 869.9 As at 29 December 2023 Market capitalisation1 $ million 14 Private Cash2 $ million 3.9 Net borrowings2 $ million 6.1 77.3% Aust insitutions 12 month high cents per share 8.0 12.1% 12 month low cents per share 1.4 Fore
Slide 16: Wrap up
Wrap up Proven location and success rate. Ready to drill for production and cash flow uplift. 1. Vintage’s existing gas contract presents a compelling case for appraisal drilling on the Odin gas field to lift production and cash flow in the near term. 2. Vintage is ready to proceed with Odin-2, a su
Slide 17: Cooper Basin Southern Flank: What is it and why is it attractive?
Cooper Basin Southern Flank: What is it and why is it attractive?
Slide 18: Southern flank location
Southern flank location Proven gas province between highly productive regions in South Australia and Queensland • Lightly explored and developed region between Ballera gas plant (Queensland) and Dullingari satellite (South Australia). • Connected to Moomba gas plant by Vintage pipeline and South Aus
Slide 19: Vintage operations in the Southern Flank
Vintage operations in the Southern Flank Established production via Santos and Vintage pipeline connection to Moomba processing plant Overview PRL 211/ ATP 2021 (50% interest and Operator) • Vintage facilities connected to SACB network and Moomba processing plant • Vali and Odin gas discoveries, 202
Slide 20: The Southern Flank opportunity
The Southern Flank opportunity Compelling conventional oil and gas location in eastern Australia • Southern Flank Nappamerri Trough Underexplored Cooper Basin • Proven oil and gas province acreage • Exploration previously inhibited by acreage access • Acreage relinquishment and gazettal Attractive n
Slide 21: Drilling in Southern Flank and adjacent
Drilling in Southern Flank and adjacent Activity levels have increased with access, 3D seismic and success • Drilling activity declined in 20 years to 2020 Number of wells drilled: Southern Flank1 • Resurgence of activity from 2020 ‐ access to permits 57 ‐ 3D seismic ‐ Vali and Odin gas discoveries
Slide 22: Odin gas field
Odin gas field Connected to Moomba infrastructure, appraisal production supplying Pelican Point Power Overview • 2C gas: 39 PJ (gross; Vintage share ~19 PJ) 1 • Connected to Moomba via Vali-Beckler pipeline • Contracted to supply gas to Pelican Point Power (JV of ENGIE 72% and Mitsui 28%) from start
Slide 23: Vali gas field
Vali gas field Vintage operated. Appraisal by production. Supplying gas to AGL Overview • Total 2P sales gas and ethane reserves 97.4 PJ1 (gross; Vintage share 48.7 PJ) • 3 wells completed, connected to Moomba gathering system at Beckler • Gas processed and sold ex-Moomba • Contracted to supply all
Slide 24: Odin and Vali drilling results
Odin and Vali drilling results Multiple gas bearing zones, oil prospectivity • Odin-1 identified 3 gas bearing zones ‐ Epsilon, Toolachee and Patchawarra formations ‐ flowed gas at 6.5 MMscfg/d from Epsilon and Toolachee1 ‐ oil indications in higher sections • Vali wells all identified gas reservoir
Slide 25: Southern Flank appraisal outcomes
Southern Flank appraisal outcomes Commercial productive reservoirs. Field infrastructure and contractual footing in place. Outstanding commercial prospects for new gas. Reservoir: productive reservoirs confirmed, commercial flow Commercial opportunity proven rates recorded • Capacity to increase cas
Slide 26: Opportunity for commercial oil discoveries
Opportunity for commercial oil discoveries Drill ready targets, good oil shows at Vali and over 20 closures mapped in ATP 2021 • Highly prospective area for oil • ~11 MMbbls of oil production at Dullingari • Oil production from the Roseneath field to the south • Oil recovery from well to east (Orien
Slide 27: Capital raising details
Capital raising details we VINTAGE ENERGY
Slide 28: Key raising details
Key raising details $8.0 million via Private Placement and Accelerated, Non-Renounceable, Entitlement Offer • Raising approximately $8.0 million via issuing 799.6 million new shares (“New Shares”) consisting of: • $1.3 million private placement issuing ~130.5 million New Shares (“Placement”). • $6.7
Slide 29: Key raising details
Key raising details Pro-forma Capital Structure Post-capital raise pro-forma Capital Structure Pre-raise ordinary shares 869.9 million Pre-raise market capitalisation1 $13.9 million Target New Shares issued 799.6 million 91.9%2 Total target shares post-raise 1,669.5 million Issue Price $0.01 Implied
Slide 30: Indicative timeline
Indicative timeline Key dates Trading halt entered and announcement of Capital Raising Monday 25 March 2024 Accelerated Institutional Entitlement Offer opens (before 9:00 am AEDT) Monday 25 March 2024 Accelerated Institutional Entitlement Offer closes (7:00pm AEDT) Tuesday 26 March 2024 Trading halt
Slide 31: Explanatory notes and risks
Explanatory notes and risks VINTAGE ENERGY
Slide 32: Explanatory notes
Explanatory notes Prospective and Contingent Resources: With respect to Prospective Resource estimates contained in this report, estimated quantities of petroleum that may potentially be recovered by the application of future development projects relate to undiscovered accumulations. These estimates
Slide 33: International offer restrictions
International offer restrictions This document does not constitute an offer of new ordinary shares (New Shares) of the Company in any jurisdiction in which it would be unlawful. In particular, the document may not be distributed to any person, and the New Shares may not be offered or sold, in any co
Slide 34: International offer restrictions (cont.)
International offer restrictions (cont.…) Singapore This document and any other documents relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Authority of Singapore. Accordingly, this document and any other document in connec
Slide 35: International offer restrictions (cont.)
International offer restrictions (cont.…) United Kingdom Neither this document nor any other document relating to the offer has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Marke
Slide 36: Investment risks
Investment risks Potential investors should be aware that there are risks associated with investing in Vintage. Certain risks are beyond the control of Vintage and its directors and management and may have a material impact on Vintage’s future operating and financial performance, and/or the financia
Slide 37: Investment risks (cont.)
Investment risks (cont.….) Investment risks Adverse weather conditions events, unforeseen increases in establishment costs, mechanical failures, human errors, industrial disputes or encountering unusual or unexpected geological formations and other unforeseen events, could lead to increased costs or
Slide 38: Investment risks (cont.)
Investment risks (cont.….) Investment risks Exploration and development of hydrocarbon reserves and resources require significant capital and operational expenditure. With future growth, Access to funding Vintage may require funding for future commitments. There can be no assurance that the Company
Slide 39: Investment risks (cont.)
Investment risks (cont.….) Investment risks The financial performance of the Company is subject to its various counterparties or joint venture partners continuing to perform their respective Counterparty obligations under various contracts. If one of its counterparties or joint venture partners fail
Slide 40: Investment risks (cont.)
Investment risks (cont.….) Investment risks The Company notes that Odin 2 is a commitment well, meaning that if the Company is unable to drill Odin 2 by 31 May 2024 then it will not have met the expenditure requirements of ATP 2021. The Company intends to do all things in its power to ensure that it
Slide 41: Glossary
Glossary $ Australian dollars GJ Gigajoule (1 GJ is equivalent to 1x109 joules) 1C Contingent resource low estimate1 JV Joint Venture 2C Contingent resource medium estimate1 Km2 Square kilometres 3C Contingent resource high estimate1 Km Kilometre 2D Two dimensional LNG Liquefied Natural Gas 3D Three