Vintage Energy Ltd (ASX: VEN) has announced the execution of Grant Agreements with the Government of South Australia, securing two $2.5 million grants, totalling $5 million. These funds provide cornerstone funding for drilling two new gas production wells, Odin-3 and Vali-4, in the Southern Flank gas projects. Vintage Energy Ltd is an Australian-based energy company focused on the exploration, appraisal, and development of natural gas and liquids projects, primarily operating in Australia’s Cooper Basin. The grants are estimated to cover up to 50% of the drilling costs. Vintage, as operator, holds a 50% interest in PRL 211 and ATP 2021, with joint venture partners Metgasco Ltd (ASX: MEL) and Bridgeport (Cooper Basin) Pty Ltd each holding 25%.
The grants, initially announced on 20 February 2026, are allocated for Odin-3 and Vali-4 within the Southern Flank of the Nappamerri Trough in the 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 these wells are intended to boost output. “Both wells are designed to bring gas reserves online and increase supply for electricity generation in South Australia,” Mr Gibbins affirmed. All five previous wells drilled in the Southern Flank projects have successfully found gas.
Vali-4 is designed for fresh access to the Toolachee Formation and to intersect shallower Nappamerri sands. Odin-3 is located to intersect the Toolachee and Epsilon reservoirs, proven strong producers similar to Odin-1. Mr Gibbins highlighted the fields as a “largely untapped gas resource” for south-east Australia, estimated to hold over 130 PJ of Gross Proved and Probable gas reserves awaiting connection. Much of this gas is uncontracted and, subject to drilling and connection, available for new contracts. The grant significantly advances production plans, with receipt of funding anticipated prior to 30 June 2026, enabling Vintage to finalise drilling contracts.
