Vintage Energy Ltd (VEN.AX) Capital Raise to Upscale Odin Gas Project

Vintage Energy Ltd (ASX:VEN) announces a $8.0 million capital raising to fund near term growth in its gas production and revenue generation from the Odin gas field. The capital raising comprises a $1.3 million institutional investor private placement and a $6.7 million accelerated non-renounceable entitlement offer ("ANREO") launched today.

- $8.0 million capital raising

- $1.3 million private placement

- $6.7 million entitlement issue

- Funds raised to fund drilling and connection of Odin gas wells to increase production into existing contract

- Targeting near term impact with drilling and connection possible within months

- Institutional and Retail offers of 1 for 1.3 at $0.01 per share

The private placement and ANREO will result in the issue of 799.6 million new ordinary shares ("New Shares"), all at the price of 1.0 cents per share ("Offer Price"). The Entitlement Offer is to be conducted through two phases: an accelerated institutional entitlement ("Institutional Entitlement") which opens today and a retail entitlement ("Retail Entitlement") for eligible retail shareholders as at the record date of Wednesday 27 March 2024 (further details under the heading "Offer Information" later in this announcement).

The Offer Price represents; a 37.5% discount to the last closing price of 1.6 cents per share on 22 March 2024; a 40.3% discount to the 15-day volume weighted average price of 1.67 cents per share and a 23.8% discount to the theoretical ex-rights price (TERP) of 1.31 cents per share.

Application of funds

The funds raised through the capital raising will be used predominantly to fund the drilling of two appraisal wells; Odin-2 and Odin-3, and, if successful, the completion and connection of one of those wells to increase gas production and sales from the Odin gas field, as detailed in the table following.

Odin-1 was brought online in September 2023, less than two years after flow testing, with all gas produced being supplied to Pelican Point Power (a joint venture of ENGIE (72%) and Mitsui (28%)) under a sales agreement extending to December 2026. The Odin gas supply contract was negotiated in 2023, and Vintage and its joint venturers in Odin are exempt from the $12/Gj price cap. The Vintage Energy operated Joint Venture has a 100% drilling success rate to date with its Vali and Odin wells.

Managing Director comment;

"This capital raising will enable Vintage to push on to increase gas production and cash generation from the Odin gas field. Odin-1 has performed well since coming online and we are keen to replicate this and increase sales under the supply contract we hold with Pelican Point Power by stepping up production from the field." said Managing Director, Neil Gibbins.

"We foresee a near term impact. We are ready to drill, with a rig contracted and the expectation a successful outcome could see gas flowing from a new Odin well by July this year. We anticipate cash generated in this scenario will take Odin into a self-sufficient cash generating operation".

Our existing contract and Odin's performance to date presents a compelling proposition for expansion of the field's productive capability and its cash generation.

"The Board considered a number of different options as to how to best fund the drilling of new wells at Odin, including debt funding and concluded this equity capital raising is clearly the most appropriate way to proceed given the current stage of the Odin gas field. It is consistent with market practice and reduces risk" he said.

To view the Capital Raise Investor Presentation, please visit:
https://www.abnnewswire.net/lnk/9M3LJ364

Neil Gibbins
Managing Director
+61 8 7477 7680
info@vintageenergy.com.au

Don Murchland
Investor relations
+61 439 300 932
don.murchland@vintageenergy.com.au

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