Vintage Energy Ltd Stock Market Press Releases and Company Profile
Institutional Placement and Entitlement Offer
Institutional Placement and Entitlement Offer

Melbourne, Sep 17, 2020 AEST (ABN Newswire) - Vintage Energy Ltd (googlechartASX:VEN) advises that it has undertaken a share placement to institutional and sophisticated/professional investors ("Placement") at an issue price of $0.06 per share, raising gross proceeds of $3.1 million. A non-renounceable entitlement offer ("Entitlement Offer") for eligible shareholders will be undertaken at $0.06 per share on a 1 for 2 basis, targeting gross proceeds of up to ~$12.1 million.

The funds received from the Placement and Entitlement Offer will be used to advance two potential production and cash generating projects. These are the Vali Field pipeline connection to the Moomba gathering system, and the testing of the Nangwarry CO2 discovery (both subject to regulatory and joint venture approvals). Funds will also be used to increase production from the Vali Field through drilling two further wells, as well as drilling the nearby Odin prospect (both subject to regulatory and joint venture approvals and rig availability). More specifically, funds and uses will primarily be as follows (net to Vintage):

- ~$3.5 million - Vali Field connection into the Moomba gathering system;

- ~$5.0 million - Drilling of two further Vali Field wells;

- ~$2.5 million - Drilling the Odin prospect;

- ~$1.0 million - Testing the Nangwarry CO2 discovery;

- ~$0.2 million - Long lead items for drilling the Cervantes prospect; and

- ~$3.0 million - Geological, Geophysical and Engineering studies ("GG&E").

The connection of the Vali Field to the Moomba gathering system is the most immediate priority for Vintage. If less than the full $12.1 million is raised under the Entitlement Offer, residual funding will be allocated to those work programs that are deemed by Vintage to be the most value accretive.

Vintage's Managing Director, Neil Gibbins said, "Vintage is well positioned for first production and cash flow in the first half of next year. This is a very exciting time for the company as we look to deliver first gas production into the eastern Australian gas market from the Vali Field in the Cooper Basin, build on the success at Vali with further wells in the Vali Field, drill the nearby 'Vali look-a-like' Odin prospect, and flow test the under-the-radar CO2 discovery at Nangwarry in the Otway Basin. All of these projects have the potential to be value accretive for Vintage and its shareholders, with the funds raised used to develop the infrastructure and undertake the test work needed for first cash flow, which in turn will provide funding optionality in the future."

Capital raising terms

Vintage is seeking to raise up to ~ $15.2 million through the combination of the Placement and an Entitlement Offer by issuing new fully paid ordinary shares at $0.06 per share. Shares in the Placement have been placed with institutions and sophisticated/professional investors (who qualify under s.708(8) to (12)).

Placement

The Placement was conducted by Taylor Collison and MST Financial Services using a single tranche structure in accordance with the Company's available placement capacity pursuant to ASX Listing Rule 7.1. The Placement will comprise 51.6 million shares at a price of $0.06 per share to raise a total of $3.1 million.

The Placement price of $0.06 per share represents a discount of 14.3% to the Vintage's last closing price of $0.07 per share on 14 September 2020 and a 20.2% discount to the 5-day VWAP. Settlement of the Placement is expected to occur on 23 September 2020, with Placement shares expected to be allotted and commence trading on 24 September 2020 (along with an Appendix 3B confirming the exact allotments).

Entitlement Offer

Vintage is also offering existing eligible shareholders the opportunity to participate in an Entitlement Offer to raise up to ~ $12.1 million, through the issue of 201.1 million shares at the same issue price as the Placement, being $0.06 per share. Eligible shareholders recorded on the register at 7:00 pm (AEST) on 24 September 2020, will be entitled to apply for shares on a 1-for-2 ratio based on their existing shareholding. Eligible shareholders will be entitled to apply for additional shares if they have taken up their entitlement in full.

Participation in the Entitlement Offer is entirely optional and is open to all shareholders, other than shareholders who have registered addresses in countries outside Australia and New Zealand where regulatory requirements make participation by the shareholder unlawful or impracticable.

The Entitlement Offer is partly underwritten by Taylor Collison and MST Financial Services to the extent of $5.2 million on a proportional basis to the percentage shortfall1. In addition, Vintage Directors and management have committed to take at least $500,000 of their entitlements.

Vintage will apply for quotation of the new shares issued under the Placement and Entitlement Offer on the ASX, which will rank equally in all respects with existing Vintage fully paid ordinary shares.

Investor Presentation

Further details of the capital raising are detailed in the investor presentation here:
https://abnnewswire.net/lnk/4T92C88E



About Vintage Energy Ltd

Vintage Energy LtdVintage Energy Ltd (ASX:VEN) has been established to acquire, explore and develop energy assets principally within, but not limited to, Australia, to take advantage of a generally favourable energy pricing outlook.

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Contact

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



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