- Vintage Energy (VEN) wraps up the institutional component of its $5.6 million capital raising to accelerate production at its Cooper Basin gas fields
- The institutional component to existing shareholders raised a total of $3 million, via the issue of 59.3 million new ordinary shares at five cents apiece
- Meanwhile, Vintage is offering a further 52.5 million new shares to eligible retail shareholders under a fully underwritten retail entitlement offer
- The offer will open on June 7, also at 5 cents per share, closing 16 days later
- Company shares are down 12.9 per cent and trading at 5.4 cents at 11:17 am AEST
Vintage Energy (VEN) has wrapped up the institutional component of its $5.6 million capital raising to ramp up production at its Cooper Basin gas fields.
The institutional component to existing shareholders raised a total of $3 million through a $2 million private placement and a $1 million fully underwritten non-renounceable entitlement offer.
Through the institutional raise, Vintage reported it would issue around 59.3 million new ordinary shares at 5 cents apiece.
The funds raised will go towards the near-term acceleration of production from Vintage’s Cooper Basin gas fields, Vali and Odin, plus “provide flexibility” to target additional growth through appraisal and drilling.
“Through this raising, we expect to realise significant increases in our supply of gas to eastern Australia and, in turn, our revenue and cash flow generation,” Vintage Managing Director Neil Gibbins said.
“Our work program for the coming months is to take the Vali gas field from one to three producing wells and bring the Odin gas field online to supply gas to our new contract with Pelican Point Power.
“The transition to a two-field, two-contract gas producer will be a substantial step-up for Vintage and comes within five years of our initial listing,” Mr Gibbins added.
The new shares are due to be issued on June 9, ahead of commencing trading on June 13, 2023.
Meanwhile, Vintage is opening a further 52.5 million new shares to eligible retail shareholders under a fully underwritten retail entitlement offer.
The offer will open on June 7 at the same price as the institutional raise, before closing 16 days later.
MST Financial Services and Taylor Collison acted as joint lead managers to the placement and joint underwriters to the entitlement offer.
VEN was down 12.9 per cent and trading at 5.4 cents at 11:17 am AEST.