Vintage Energy Ltd (ASX: VEN), an oil and gas exploration and production company primarily focused on eastern Australian energy needs, has announced the execution of Grant Agreements with the Government of South Australia. These agreements secure two $2.5 million grants, totalling $5 million, which will provide cornerstone funding for the drilling of two new gas production wells in the company’s Southern Flank gas projects.
The grants, initially announced on 20 February 2026, are designated for the PRL 211 and ATP 2021 Joint Ventures, where Vintage Energy holds a 50% interest and operates. Other interest-holders include Metgasco Ltd (ASX: MEL) and Bridgeport (Cooper Basin) Pty Ltd, both with 25%. The funding is expected to cover up to 50% of the cost for drilling the Odin-3 and Vali-4 wells in the Nappamerri Trough, Cooper Basin. The Odin and Vali gas fields, discovered by the joint ventures in 2019 and 2020, currently supply South Australian energy generators ENGIE and AGL.
Vintage Energy Managing Director Neil Gibbins stated that Odin-3 and Vali-4 are intended to significantly lift output from these fields. “Both wells are designed to bring gas reserves online and increase supply for electricity generation in South Australia,” Mr Gibbins said. Vali-4 has been designed for fresh access to the Toolachee Formation and shallower Nappamerri sands, while Odin-3 will target the Toolachee and Epsilon reservoirs, which have proven to be strong producers. The fields hold over 130 PJ of Gross Proved and Probable gas reserves, with the large majority uncontracted and available for future supply needs.
Mr Gibbins welcomed the grant, calling it a significant endorsement that advances plans to boost gas production. He also acknowledged the vision of the Gas Incentive Grants program for encouraging new gas supply and providing tangible support for South Australia’s energy security. The grants are part of a broader $15 million government program aimed at accelerating investment in gas supply, storage, and infrastructure, with project delivery required prior to 30 September 2028. Receipt of the full $5 million funding is anticipated prior to 30 June 2026, enabling Vintage Energy to ascertain rig availability and complete drilling contract requirements.
