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$8 million for Odin

Carnarvon Dorado

Vintage Energy has announced a $8 million capital raising to fund near term growth in its gas production from the Odin gas fields.

The capital raising comprises of a $1.3 million institutional investor private placement and a $6.7 million accelerated non-renounceable entitlement offer.

These will result in the issue of 799.6 million new ordinary shares at the price of 1.0 cents per share.

“This capital raising will enable Vintage to push on to increase gas production and cash generation from the Odin gas field,” Vintage Energy managing director Neil Gibbins said.

“Odin-1 has performed well since coming online and we are keen to replicate this and increase sales under the supply contract we hold with Pelican Point Power by stepping up production from the field.”

Gibbins said the company is ready to drill, with a rig contracted and the expectation that could see gas flowing from a new Odin well by July.

“Our existing contract and Odin’s performance to date presents a compelling proposition for expansion of the field’s productive capability and its cash generation,” he said.

“The Board considered a number of different options as to how to best fund the drilling of new wells at Odin, including debt funding and concluded this equity capital raising is clearly the most appropriate way to proceed given the current stage of the Odin gas field.

“It is consistent with market practice and reduces risk.”

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