FY22 Q3 Quarterly Activities Report
Melbourne, April 28, 2022 AEST (ABN Newswire) - Vintage Energy Ltd (
ASX:VEN) provide the FY22 Q3 Quarterly Report featuring a Maiden Gas Sales Agreement, preparation for Vali well simulation and the spudding of the Cervantes-1 well.
Managing Director's comment
"The work done in the March quarter has seen us all but complete the contracting and planning milestones needed for the Vali gas project to proceed.
"Foremost is the signing of Vintage Energy's maiden gas contract, a supply agreement extending for more than four years which will see the company generate its first revenue, and transition to becoming a producer supplying gas to the eastern Australian domestic energy sector.
'Whilst this was the highlight, the significance of the quarter's contracting and planning efforts is evident in the events since quarter's-end. In April, we commenced the Vali fracture stimulation campaign, executed a processing and transportation agreement for Vali gas, saw our GSA become unconditional and issued the first invoice under the GSA for pre-payments.
'The weight of our focus now shifts to field operations, completing the frac campaign, the Vali and Odin well completion program and the installation and commissioning of Vali facilities and pipeline, safely and efficiently".
COMMERCIAL
Gas Sales Agreement with AGL for supply of gas from Vali
During the quarter Vintage and the ATP 2021 Joint Venture parties announced signing of a Gas Sales Agreement ("GSA") with AGL Wholesale Gas Limited ("AGL") for the sale of between 9 petajoules (PJ) and 16 PJ of gas produced from the Vali gas field over approximately 4.5 years from field start up to end calendar 2026. The supply of gas under the GSA will constitute approximately 9% to 16% of the field's 2P reserves.
Vintage has a 50% interest in ATP 2021. The terms of the GSA reflect the Heads of Agreement between the joint venture and AGL announced 6 December 2021, following a competitive process.
The GSA, which was subject to conditions precedent, became unconditional subsequent to the end of the quarter following execution of an upstream transportation and processing agreement with the South Australian Cooper Basin Joint Venture. Consistent with the GSA, Vintage then issued invoices to AGL for the first two of three, $5 million pre-payments payable to the ATP 2021 joint venture. The pre-payments are to be applied specifically to capital expenditure to take Vali to first gas.
*To view the full Quarterly Report, please visit:
https://abnnewswire.net/lnk/IX577359
About Vintage Energy Ltd
Vintage 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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