Vintage Energy Ltd (VEN: ASX) has announced an extension and amendment to its $10 million secured loan facility with PURE Asset Management Pty Ltd. Vintage Energy is an Australian oil and gas exploration and production company focused on developing its portfolio of assets. The amendments extend the term expiry from 10 June 2026 to 31 January 2028 and include provisions for early repayment of an instalment based on the success of current corporate initiatives.
According to Vintage Managing Director Neil Gibbins, the amended facility aligns with the company’s plans to reinvigorate activity in its Southern Flank gas projects and reform the joint venture. Gibbins stated that the changes provide Vintage with a clear path to increase production and value from its Southern Flank gas projects, particularly the Odin and Vali fields, which contain over 135 PJ of undeveloped 2P gas reserves. The agreement allows Vintage to concentrate on bringing more gas to market and increasing cash generation.
The company is planning to drill new gas production wells on the Odin and Vali gas fields. The South Australian government has granted a total of $5 million to the PRL 211 and ATP 2021 joint ventures for drilling Odin-3 and Vali-4, subject to the signing of grant agreements. These grants are expected to cover up to 50% of the drilling costs. Gibbins highlighted that securing these amendments is a crucial step in implementing Vintage’s plans, emphasizing PURE Asset Management’s ongoing support.
The amended agreement maintains the existing interest rate and includes a provision for repaying a $3 million tranche before 31 December 2026, contingent on a successful Southern Flank joint venture reformation, including the farm down of joint venture interests not currently held by Vintage. Such a repayment would reduce the minimum cash covenant from $1.5 million to $1 million, providing additional flexibility to Vintage’s capital management strategy.
