Vintage Energy Ltd. · ASX:VEN
Vintage Energy — Investor Presentation (September 2020)
45 slides from Vintage Energy's investor presentation, Sep 17, 2020
Slide 1: Capital raising to transition into a cash producing company
SEPTEMBER 2020 For personal use only Capital raising to transition into a cash producing company
Slide 2: Funding for Cooper Basin growth strategy and near-term cash flow
Funding for Cooper Basin growth strategy and near-term cash flow For personal use only Aerial view of Vali-1 ST1 fracture stimulation
Slide 3: Quality portfolio of permits; next steps require capital
Quality portfolio of permits; next steps require capital Geographically diverse and gas focused portfolio; cash flow anticipated in Q3 FY21 For personal use only •Growing, multi-permit, footprint Bonaparte •Multiple oil and gas play •ATP 2021: Commercial gas field Basin types in frontier region prov
Slide 4: Line of sight to cash flow within two years of listing
Line of sight to cash flow within two years of listing Delivering in a short time frame; funding required for next steps For personal use only FY19 FY20 FY21 LISTING BUILDING EXECUTING NEXT STEPS • $30 million IPO • Entry into two new • Success with Vali-1 • Capital raising of • Focus on basins ST1
Slide 5: Executing: first operated well completed safely and expeditiously
Executing: first operated well completed safely and expeditiously Vali-1 ST1 underpins broader Cooper Basin expansion strategy For personal use only 2C COMMENCE CONTINGENT DRILLING RESOURCE Spud of first Vintage Certified 2C Contingent operated well Resource of 18.9 Bcf (Net) JUL 2019 DEC 2019 JAN 2
Slide 6: Major work program for growing Cooper Basin portfolio
Major work program for growing Cooper Basin portfolio ~$11 million (net) to deliver production and cash flow; three further wells to be drilled For personal use only VALI PIPELINE TWO FURTHER ODIN WELL2 CONNECTION1 VALI WELLS2 ~$3.5m ~$5.0m ~$2.5m • Pipeline engineering and • Potential to increase •
Slide 7: Capital raising rationale
Capital raising rationale Field development to deliver first gas production and cash within six months1; recent Vali success de-risks nearby prospects For personal use only • Raised $30 million at IPO and delivered two discoveries • Funds to provide management time and money to WHY • Success at Vali
Slide 8: Key raising details
Key raising details Targeting up to ~$15 million via Share Placement and Entitlement Offer For personal use only • Targeting up to approximately $15 million via: Offer Size & – Single tranche Placement, utilising Vintage’s 7.1 capacity of $3.1 million at $0.06 per share Issue Price Structure – A 1-f
Slide 9: Key raising details: pro-forma capital structure
Key raising details Pro-forma Capital Structure For personal use only Post-capital raise pro-forma $15.2m raise Pre-raise ordinary shares 350.8m 58% Pre-raise market capitalisation1 $24.6m Max. new shares issued (Placement+Entitlement Offer) 252.8m 42% Total max. shares post-raise 603.6m 100% Issue
Slide 10: Indicative Placement and Entitlement Offer timeline
Indicative Placement and Entitlement Offer timeline For personal use only Key dates Trading halt entered and announcement of Equity Raising 15-September-2020 Placement Offer Opens 15-September-2020 Placement Offer Closes 16-September-2020 Trading halt lifted and trading resumes 17-September-2020 Set
Slide 11: Sources and uses of funds (net to Vintage)
Sources and uses of funds (net to Vintage) Capital raising to secure first cash flow with Vali Field connected1 and two development wells drilled2; fracture stimulation of new wells to be covered by cash flow use only ~$11m Cooper Basin work program For personal A$ million 1 Subject to regulatory an
Slide 12: Indicative timeline – next months
Indicative timeline – next 12 months For personal use only MAR AUG NOV DEC OCT MAY APR SEP FEB JUN JAN JUL 2020/21 Vali Field First gas production and cash generation1 connect1 New Vali Drill Drill Stimulation Field wells2 Odin well2 Drill Nangwarry-1 Test well3 3D seismic3 ATP 2021 Vali Odin Nangwa
Slide 13: Operations
Operations For personal use only Vali-1 ST1 fracture stimulation
Slide 14: Achievements to date and upcoming activities
Achievements to date and upcoming activities Line of Transitioning the business to cash generating production sight to cash flow For personal use only Discovery of Vali Field; targeting Odin Cooper / Eromanga 1 prospect1 (Vali look-a-like); de-risking of Basins (Southern Flank) leads and prospects i
Slide 15: Cooper / Eromanga Basins
For personal use only Cooper / Eromanga Basins
Slide 16: Building a sizeable footprint in the Cooper Basin
Building a sizeable footprint in the Cooper Basin Selective permit acquisition with familiar geology delivering success For personal use only • Two farm-ins and successful gazettal • Total acreage position of 862.8 km2 ATP 2021 • Farm-in for 50% and operatorship (July 2019) • Vali prospect identifie
Slide 17: Cooper / Eromanga Basins – Southern Flank (ATP 2021)
Cooper / Eromanga Basins – Southern Flank (ATP 2021) Vali gas discovery flowed at 4.3 MMscfd through 36/64” choke at 942 psi wellhead pressure For personal use only • Vintage 50% and operator (Metgasco Ltd 25%, Bridgeport Cooper Basin Pty Ltd 25%) • Vali-1 ST1 the first operated well for Vintage • F
Slide 18: Vali Field development concept
Vali Field development concept Connection of Vali-1 ST11 and two further vertical wells targeted for Q1 FY212 For personal use only • Potential for nine well development • Flow test results, along with field and analogue well data analysis, indicate ~5 MMscfd raw gas initial rate and ~5 Bcf of raw g
Slide 19: 2P Reserve conversion process underway
Cooper / Eromanga Basins – Southern Flank (ATP 2021) 2P Reserve conversion process underway For personal use only • Vali Field ERCE 2C gas resource of 37.7 Bcf1 (gross) – Estimated from over 80 metres of interpreted log net gas pay (porosity cut-off of 6%) over a gross 312 metre interval in the Patc
Slide 20: Cooper / Eromanga Basins – Southern Flank (PRL 211)
Cooper / Eromanga Basins – Southern Flank (PRL 211) Odin de-risked as a result of Vali-1 ST1 success; prospect straddles PRL 211 and ATP 2021 For personal use only • PRL 211 is a 98.49 km2 retention licence • The Odin structure, fully covered by recent 3D seismic, has gas potential in the Patchawarr
Slide 21: Odin structure is a Vali 'look-a-like'
Cooper / Eromanga Basins – Southern Flank (PRL 211) Odin structure is a Vali ‘look-a-like’ For personal use only • Odin is a Permian four-way dip closure plunging to the north-east into the Nappamerri Trough – Prospective for gas in multiple sands – Up-dip of Strathmount-1 which intersected interpre
Slide 22: Southern Flank production potential
Southern Flank production potential Potential for long life production from Vali Field, Odin prospect and Kinta prospect For personal use only • ATP 2021 and PRL 211 • Connect Vali Field first ATP 2021 / PRL 211 potential gas production profile (accelerated) • Odin prospect in close proximity to Val
Slide 23: Successful gazettal bid – PELA
Successful gazettal bid – PELA 679 Analogous to prolific Western Flank oil play; Pennington and Bauer oil fields up-dip of Permian stratigraphically trapped gas at Middleton For personal use only • Successful bid for 393 km2 Block CO2019-E (PELA 679) in south west of SA Cooper Basin • 2D seismic dat
Slide 24: Otway Basin
For personal use only Otway Basin
Slide 25: Otway Basin – Central Penola Trough (PEL 155)
Otway Basin – Central Penola Trough (PEL 155) Nangwarry-1 CO2 discovery potentially capable of commercial production over 30+ years For personal use only • Vintage 50%, Otway Energy Pty Ltd 50% and operator • Nangwarry-1 drilled during December 2019 / January 2020 • High-quality CO2 discovery with n
Slide 26: PEL - Nangwarry recoverable CO2 booking
PEL 155 - Nangwarry recoverable CO2 booking Recoverable gas booking and MOU with Supagas are major steps toward first CO2 production For personal use only • Recoverable CO2 independently assessed and booked • MOU signed with Supagas for the preliminary design and costing • Gross recoverable estimate
Slide 27: Otway Basin – Central Penola Trough: Caroline-1 CO2 well
Otway Basin – Central Penola Trough “The Caroline-1 CO2 well….the single most profitable well in South Australia”1 For personal use only • Caroline-1 discovered by Alliance Oil Development Australia in 1967 – Located southeast of Mt Gambier – Eventually owned by Air Liquide Australia Ltd • CO2 produ
Slide 28: Perth Basin
For personal use only Perth Basin
Slide 29: Perth Basin – Oil potential
Perth Basin – Oil potential Interest in Cervantes oil prospect and option to drill a second structure For personal use only • L14, located within the Perth Basin, is a 39.8 km2 production licence granted over the Jingemia oilfield and surrounds Farm-in structure • Binding farm-in agreement executed
Slide 30: Perth Basin – Oil potential: Cervantes structure
Perth Basin – Oil potential Adjacent to the 12 MMbbl oil in place Jingemia oil field (over 4.6 MMbbl produced to date) For personal use only • Cervantes structure located in a gap between the oil discovery trend of the Hovea, Jingemia and Cliff Head oil fields – High-side fault trap of multiple rese
Slide 31: Appendices
For personal use only Appendices
Slide 32: Projected eastern and south-eastern gas production vs demand
Projected eastern and south-eastern gas production vs demand New gas discoveries required to ease dependence on the development of ‘undeveloped 2P Reserves’ and ‘anticipated developments’ to meet forecast demand For personal use only • Federal Govt has identified gas companies and the Forecast east
Slide 33: Galilee Basin – ATPs 743, 744, 1015 ("Deeps")
Galilee Basin – ATPs 743, 744, 1015 (“Deeps”) Stimulation to assess commerciality For personal use only • Vintage 30%, Comet Ridge 70% (operator) • Underexplored and areally extensive permits of more than 9,000 km2 • Albany Field is a large robust anticlinal structure over 61 km2 • Defined by 1980’s
Slide 34: Other permits
Other permits Longer-term projects with potentially high rewards For personal use only Bonaparte Basin, Northern Territory – EP 126 • Vintage 100% • Low cost entry into large 6,700 km2 permit • Gas flows from onshore Bonaparte wells – Onshore is an underexplored frontier region – Four petroleum expl
Slide 35: Explanatory notes and risks
For personal use only Explanatory notes and risks
Slide 36: 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 For personal use only development projects relate to undiscovered accumula
Slide 37: Disclaimer
Disclaimer This presentation has been prepared by Vintage Energy Limited (“Vintage” or the “Company”), with the purpose of providing general information about the Company. This For personal use only presentation contains certain statements which may constitute “forward-looking statements”. Such stat
Slide 38: 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 For personal use only may not be distributed to any person, and the New Shares may not be offe
Slide 39: International offer restrictions (cont…)
International offer restrictions (cont…) Singapore For personal use only 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 oth
Slide 40: International offer restrictions (cont…)
International offer restrictions (cont…) United Kingdom For personal use only 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 Financi
Slide 41: 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, For personal use
Slide 42: Investment risks (cont….)
Investment risks (cont….) Investment risks For personal use only • 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, Operation
Slide 43: Investment risks (cont….)
Investment risks (cont….) Investment risks For personal use only • Exploration and development of hydrocarbon reserves and resources require significant capital and operational expenditure. With future growth, Vintage may require funding for future commitments. There can be no assurance Access to fu
Slide 44: Investment risks (cont….)
Investment risks (cont….) Investment risks For personal use only • The financial performance of the Company is subject to its various counterparties or joint venture partners Counterparty continuing to perform their respective obligations under various contracts. If one of its counterparties or join
Slide 45: Glossary
Glossary $ Australian dollars GJ Gigajoule (1 GJ is equivalent to 1x109 joules) For personal use only 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 Liquefie
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