Highlights

  • Vintage Energy signed grant agreements with the South Australian Government for two AUD 2.5 million grants.
  • The total AUD 5 million funding is expected to support drilling of Odin-3 and Vali-4 gas production wells.
  • The grants are estimated to fund up to 50% of the cost of drilling the two wells.
  • Vintage holds a 50% interest and operates the Southern Flank gas projects PRL 211 and ATP 2021.

Vintage Energy Ltd (ASX:VEN) has signed grant agreements with the Government of South Australia for two AUD 2.5 million grants that will provide cornerstone funding for drilling two new gas production wells at its Southern Flank gas projects.

The agreements relate to the Odin-3 and Vali-4 wells, which are planned within PRL 211 and ATP 2021 in the Southern Flank of the Nappamerri Trough, Cooper Basin. Vintage is the operator and holds a 50% interest in the projects, while Metgasco Ltd holds 25% and Bridgeport (Cooper Basin) Pty Ltd holds the remaining 25%.

Vintage Energy shares traded flat at AUD 0.002 during the afternoon session on 15 June 2026. The company’s latest update focused on funding support for future gas production wells rather than any immediate change in share price performance.

About Vintage Energy

Vintage Energy is an Australia-based oil and gas exploration and production company. Its activities include exploration, appraisal, development and commercialisation of hydrocarbon accumulations across onshore Australian basins.

The company holds interests in petroleum exploration licences across the Cooper/Eromanga basins in South Australia and Queensland, the Otway Basin in South Australia and Victoria, the Galilee Basin in Queensland and the Bonaparte Basin in the Northern Territory.

The Cooper/Eromanga basins are recognised as established onshore oil and gas-producing regions in Australia. Vintage’s Southern Flank gas projects sit within this broader Cooper Basin setting, where existing infrastructure supports gas gathering, processing and supply.

Grant Agreements Follow February Funding Announcement

Vintage said the agreements formalise grants first announced on 20 February 2026.

The two grants have been awarded to the PRL 211 and ATP 2021 joint ventures and are expected to fund up to 50% of the drilling cost for the Odin-3 and Vali-4 production wells.

Receipt of the full AUD 5 million funding is expected before 30 June 2026. According to the company, this will allow Vintage to assess rig availability windows and complete the requirements needed for a drilling contract.

The grant funding forms part of the South Australian Government’s Gas Incentive Grant program, which has awarded total grants of AUD 15 million. The program is designed to accelerate investment in gas supply, storage and infrastructure projects, with project delivery required before 30 September 2028.

Odin-3 and Vali-4 Designed to Lift Field Output

Vintage Managing Director Neil Gibbins said the Odin-3 and Vali-4 wells are intended to increase production from the Odin and Vali gas fields.

According to the company, both wells are designed to bring gas reserves online and support increased supply for electricity generation in South Australia.

The Odin and Vali gas fields were discovered by the joint ventures in 2019 and 2020. They currently supply gas to South Australian energy generators ENGIE and AGL.

Vintage stated that five wells have been drilled across the Southern Flank gas projects, with every well successful in finding gas. This includes the Vali-1 and Odin-1 new field discoveries.

Vali-4 to Target Toolachee Formation and Nappamerri Sands

The planned Vali-4 well has been designed to provide fresh access to the Toolachee Formation.

The company also stated that the well is located to intersect shallower Nappamerri sands identified through seismic interpretation using artificial intelligence techniques.

This planned approach indicates that Vali-4 is being positioned to access both known productive formations and additional shallower targets interpreted through updated technical work.

Vintage has not provided a final drilling date in the announcement, but the expected receipt of grant funding before 30 June 2026 is intended to support planning around rig availability and drilling contracts.

Odin-3 to Target Toolachee and Epsilon Reservoirs

The Odin-3 well has been located to intersect the Toolachee and Epsilon reservoirs.

Vintage said these reservoirs are similar to those intersected at Odin-1, where they have already proven to be productive.

The company’s focus on Odin-3 reflects its plan to increase output from existing discovered fields rather than solely pursuing new exploration targets.

By targeting reservoirs with established production characteristics, the company aims to bring additional gas reserves online from the Southern Flank gas projects.

More Than 130 PJ of Gross 2P Gas Reserves Awaiting Connection

Vintage highlighted the reserve base at the Vali and Odin fields in the announcement.

According to the company, the fields are estimated to contain more than 130 PJ of Gross Proved and Probable gas reserves, including gas liquids. Vintage’s share is 50%.

The company described Vali and Odin as a significant and largely untapped gas resource for south-east Australia’s energy requirements.

Vintage also stated that most of this gas remains uncontracted and, subject to drilling and connection, could be available for new contracts to meet future supply needs.

This reserve position is central to the rationale behind drilling Odin-3 and Vali-4, as both wells are intended to support the conversion of reserves into production.

Existing Infrastructure Supports Development Plans

The company noted that the Vali and Odin fields are well located and integrated into the Cooper Basin gas gathering and processing network.

This existing connection to regional infrastructure is important for development planning because it supports the pathway from drilling to gas supply.

Vintage’s announcement did not provide a detailed production forecast for the proposed new wells. However, it stated that the planned wells are intended to increase supply for electricity generation in South Australia.

The combination of discovered gas fields, existing infrastructure access and government funding support forms the basis of the company’s current Southern Flank development plans.

Government Grant Program Supports New Gas Supply

The AUD 5 million in grants awarded to the PRL 211 and ATP 2021 joint ventures forms part of South Australia’s broader Gas Incentive Grant program.

The program is directed toward projects that address gas supply, storage and infrastructure. Vintage said the program focuses on technically and economically sound projects, with delivery required before 30 September 2028.

Mr Gibbins described the grant as a welcome endorsement that advances the company’s plan to lift gas production.

He also said the program supports new gas supply and contributes to South Australia’s energy security.

What This Means for Investors

Vintage Energy’s latest announcement marks a funding milestone for the Odin-3 and Vali-4 wells at the Southern Flank gas projects.

The signed grant agreements provide access to AUD 5 million in government support, expected to cover up to half of the drilling cost for the two proposed production wells. The funding is also expected to help the company move toward rig planning and drilling contract requirements.

For investors, the key areas to monitor will be receipt of the grant funding before 30 June 2026, rig availability, drilling contract progress and future updates on the Odin-3 and Vali-4 drilling schedule. The company’s focus remains on bringing additional gas reserves online from the Vali and Odin fields to support South Australian electricity generation supply.