Vintage Energy Raises $5.6m From Investors
Neil Gibbins is the Managing Director of Vintage Energy.
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Vintage Energy raised $5.6 million to increase production at its Cooper Basin gas fields. The institutional component of the capital raising is complete.
The shareholders raised $3 million. They did this through a private placement and an entitlement offer. The private placement was $2 million. The entitlement offer was fully underwritten and non-renounceable. It was an institutional component.
Vintage announced it will sell 59.3 million new shares for 5 cents each.
Money from the fundraiser will be used to speed up production at Vintage's Cooper Basin gas fields, Vali and Odin. The funds will also allow for more opportunities to boost growth through drilling and appraisal.
Neil Gibbins, who is the Managing Director of Vintage, said that the raising of funds would lead to greater gas supply in eastern Australia. He also added that this increase in supply would result in higher revenue and cash flow generation.
We plan to increase the Vali gas field from one to three wells. We will also bring the Odin gas field online soon. We have a new contract with Pelican Point Power to supply gas.
Mr Gibbins said that shifting to a dual-field, dual-contract gas producer is a big advancement for Vintage. This move happens only five years after the company was first listed.
New shares will come out on June 9. They will start trading on June 13, 2023.
Vintage is offering 52.5 million new shares to retail shareholders. These shareholders are eligible for the offer. The offer is fully underwritten.
On June 7, the offer will begin at the same price as the institutional raise. It will last for 16 days before it closes.
MST Financial Services and Taylor Collison helped with the placement and entitlement offer. They were both joint lead managers and underwriters.
At 11:17 am AEST, VEN was trading at 5.4 cents. It went down by 12.9 per cent.
