Vintage Energy Ltd. · ASX:VEN
Vintage Energy — Investor Presentation (May 2023)
40 slides from Vintage Energy's investor presentation, May 31, 2023
Slide 1: Vintage Energy Ltd – Capital Raising presentation
Vintage Energy Ltd Discovering and delivering gas to eastern Australia Capital Raising presentation Vali-2 Stimulation operations 31 May 2023
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 26 May 2023. This presentation does not purport to be all inclusive or to contain
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 an exception amongst its peers
Vintage Energy is an exception amongst its peers. At just 5 years old, it has discovered the Vali gas field, contracted supply and commenced sales to AGL. The pace is set to accelerate in the coming months. Production and cashflow growth is expected as Vali output grows and a second discovery, Odin,
Slide 5: Executive summary
Executive summary Raising ~$5.6 million to fund expansion in cashflow and production East coast gas • Odin contract shows gas contracting is proceeding post recent policy announcements contracting has resumed, and at a • Interest from gas buyers for supply is unprecedented higher pitch • Shortfalls
Slide 6: Capital raising
Capital raising Vintage is raising capital to fund field work that will increase cash flow from Vali and Odin Cooper Basin cash flow generating initiatives coming 6 months Vali ▪ Vali-2 production commencement & Vali-3 ✓ Increased production from Vali into AGL gas contract production resumption ✓ In
Slide 7: Vali Odin status and indicative outlook
Vali Odin status and indicative* outlook Work underway to drive production & cash flow growth over the coming months Q2 CY23 Q3 CY23 Q4 CY23 Field work Full field development plan will outline Vali-2, Vali-3 Full field development plan & analysis optimal development and production profile to market
Slide 8: Cooper Basin gas: Vali and Odin
Cooper Basin gas: Vali and Odin Vintage operated. Producing and connected to Moomba infrastructure. Proved and probable1 gas: Vali Sales gas PJ Joint venture Vintage share Contracted: base 9 4.5 Contracted: upside 7 3.5 Uncontracted 85 42.5 Total 101 50.5 Contingent Resource1: Odin 2C Sales gas PJ J
Slide 9: Vali gas project
Vali gas project Production to increase. CPI-indexed price. Ingredients in place for value uplift from uncontracted gas. Current ops ▪ “Appraisal via production” with revenue from AGL GSA ▪ Accumulating data and reservoir understanding to inform field development plan ▪ Field production temporarily
Slide 10: Odin gas resource
Odin gas resource Working to come on-line Q3 2023 and expand revenue base Current operations Contingent Resources Odin1 ▪ Accelerated interim connection for Sales gas PJ 1C 2C 3C production from Q3 2023 ▪ Flowline laid in January, looking to Vintage share 9.7 19.1 36.5 complete tie-in in Q3 2023 Gro
Slide 11: Gas contracts and reserves
Gas contracts and reserves Value uplift expected from Odin contract, conversion to reserves and rising significance of uncontracted gas available for east coast supply Gas contracts Uncontracted gas Vali GSA with AGL Vali Value uplifts are anticipated: Period: Feb 2023 – Dec 2026 ▪ Over 85 PJ gross1
Slide 12: Key raising details
Key raising details a VINTAGE ENERGY
Slide 13: Key raising details
Key raising details $5.6 million via Private Placement and fully underwritten Accelerated, Non-Renounceable, Entitlement Offer • Raising approximately $5.6 million via issuing 111.8 million new shares (“New Shares”) consisting of: • $2.0 million private placement issuing 40.0 million New Shares (“Pl
Slide 14: Key raising details – Pro-forma Capital Structure
Key raising details Pro-forma Capital Structure Post-capital raise pro-forma Capital Structure Pre-raise ordinary shares 746.7m 87% Pre-raise market capitalisation1 $47.0m Target New Shares issued 111.8m 13% Total target shares post-raise 858.7m 100.0% Issue Price $0.05 Implied market capitalisation
Slide 15: Indicative timeline
Indicative timeline Key dates Trading halt entered and announcement of Capital Raising Pre-market Wednesday, 31 May 2023 Accelerated Institutional Entitlement Offer opens (before 9:00am AEST) Wednesday, 31 May 2023 Accelerated Institutional Entitlement Offer closes (10:00am AEST) Thursday, 1 June 20
Slide 16: Explanatory notes and risks
Explanatory notes and risks VINTAGE ENERGY
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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
Slide 23: Investment risks (cont.)
Investment risks (cont.….) Investment risks • Exploration and development of hydrocarbon reserves and resources require significant capital and operational expenditure. With Access to funding future growth, Vintage may require funding for future commitments. There can be no assurance that the Compan
Slide 24: 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 Counterparty respective obligations under various contracts. If one of its counterparties or joint venture partners fa
Slide 25: 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
Slide 26: Appendices
Appendices we VINTAGE ENERGY
Slide 27: Strategy
Strategy Concentration on value-creating opportunities where a clear, low-risk commercial case is supported by board and team expertise Gas Long term stable cash generation by finding, • Build & leverage gas reserves in Vali-Odin gas hub developing and supplying gas to domestic users in east coast A
Slide 28: Areas of operation
Areas of operation Onshore gas projects. Exploration acreage offering high chance of technical and commercial success. 1 Cooper Basin gas: producing from Feb 23 Exploration • Vali & Odin • 2 gas supply contracts 3 Cooper Basin 6 2 Nangwarry gas resource: engaging with industry players 4 Otway Basin
Slide 29: Southern Australian gas supply and contract outlook
Southern Australian gas supply and contract outlook Field decline and demand projections suggest tight market conditions will persist Near term delivery outlook lower than anticipated Opportunities for contracting gas to expand Actual and forecast maximum daily production capacity from southern Firm
Slide 30: Federal gas market gas policy initiatives
Federal gas market gas policy initiatives Vintage offerings unaffected by recent Federal Government price cap; buyer interest increased Vintage operations appear to be unaffected by Federal Government intervention on pricing ▪ Temporary $12/GJ price cap imposed for 12 months from late December 2022
Slide 31: Nangwarry CO2
Nangwarry CO2 Resource size and quality capable of supporting multi-decade commercial CO2 supply Nangwarry (Vintage 50%, Lakes Blue Nangwarry CO2 discovery (Gross joint venture )2 Energy 50% and operator) CO2 Sales Gas (Bcf) Unrisked hydrocarbon Contingent ▪ CO2 resource independently assessed as Re
Slide 32: The value of food grade CO2 has risen as existing supply dwindles
The value of food grade CO2 has risen as existing supply dwindles International prices and local demand have reinforced the value opportunity at Nangwarry US Producer Price Index1: CarbonDioxide 2018 - 2023 June 2018=100 160.0 150.0 140.0 130.0 120.0 110.0 100.0 2018-06 2018-09 2018-12 2019-03 2019-
Slide 33: Food-grade carbon dioxide market
Food-grade carbon dioxide market An essential input where supply is structurally challenged The market Supply ▪ Food-grade and industrial-grade CO2 is a ▪ Natural supply accounts for less than 10% of broadly- sought essential input Australian CO2 production capacity – food and beverage manufacture ▪
Slide 34: Exploration
Exploration Portfolio features a mix of proven petroleum provinces with high potential frontier acreage Bonaparte Basin Galilee Basin EP 126 PCA’s 319 - 324(“Deeps”) Includes Cullen well (extensive and strong gas shows) 2 Albany-1 & Albany-2 gas wells Cooper Basin ATP 2021, PRL 211, PELA 679 Gas and
Slide 35: Reserves and resources
Reserves and resources 51 PJ Proved and Probable Reserves. 65 PJ 2C Contingent Resource. Proved and probable1 gas: Vali Contingent Resource1 Sales gas PJ Joint venture Vintage share Sales gas PJ Vintage share Contracted: base 9 4.5 Galilee Basin 46 Contracted: upside 7 3.5 Cooper Basin 19 Uncontract
Slide 36: Finance & funding
Finance & funding ▪ Cash at 31 March 2023: $4.3 million ▪ PURE Finance facility: $10 million (fully drawn) PURE Finance Facility ▪ $10 million in 2 tranches subject to conditions precedent ▪ Term is 48 months from first draw-down which occurred in June 2022 ▪ Interest rate: 11% reducing to 8.5% on a
Slide 37: Otway Basin
Otway Basin Lightly explored gas prospective acreage in the Penola Trough PEP 171 ▪ Victorian flank of Penola Trough, reopened for exploration July 2021 ▪ 5-year permit term, renewable ▪ Prospective for gas, as shown by South Australian Penola Trough production ▪ Preparing for 3D seismic acquisition
Slide 38: Galilee Basin
Galilee Basin PCA’s 319 – 324 (“Deeps”) (Vintage 30%, Comet Ridge Ltd (“Comet”) 70% and operator) ▪ 15 year Potential Commercial Areas (PCA’s) awarded Sept ‘22 in lightly explored gas province, in proximity to market and proposed Galilee-Moranbah pipeline ▪ Vintage farmed-in to the ‘Deeps’ sandstone
Slide 39: Bonaparte Basin
Bonaparte Basin EP 126 Vintage Energy 100% ▪ Potential in multiple play types ▪ Acquired for nil consideration and acceptance of P&A of Cullen-1 if required (recognised on balance sheet) ▪ On-site work suspended pending resolution of discussions with the Northern Territory Government in relation to
Slide 40: Board
Board Chairman Managing Director Director Director Reg Nelson Neil Gibbins Nick Smart Ian Howarth Reg Nelson has a distinguished career in the Neil Gibbins has over 40 years of technical Nick Smart has over 40 years of corporate Ian Howarth created Collins Street Media, one of Australian petroleum i