Vintage Eyes Full Control of 141 PJ Southern Flank Gas Reserves
Vintage Energy has signed a conditional agreement to acquire Metgasco's 25% interest in key Southern Flank gas joint ventures, aiming to accelerate production and value creation from the Vali and Odin fields.
- Conditional Heads of Agreement to acquire Metgasco’s 25% stakes in ATP 2021 and PRL 211
- Consideration of offer to acquire Bridgeport’s 25% stakes in the same joint ventures
- Joint ventures hold 141 PJ of 2P gas reserves, over 80% uncontracted
- Funding options include new joint venture partners and equity capital raising
- Completion subject to funding, approvals, and third-party consents by early 2026
Strategic Consolidation in Southern Flank
Vintage Energy Limited (ASX, VEN) has taken a decisive step to reshape its Southern Flank gas assets by signing a conditional Heads of Agreement to acquire Metgasco’s 25% stakes in the ATP 2021 and PRL 211 joint ventures. This move, announced on 18 November 2025, is part of a broader strategy to consolidate ownership and accelerate value creation from the Vali and Odin gas fields, which collectively hold substantial proven and probable reserves.
Currently operating with a 50% interest, Vintage is also considering an irrevocable offer to acquire Bridgeport’s equivalent 25% stakes in the same joint ventures. The combined acquisitions would give Vintage full control, enabling a streamlined approach to production and development.
Significance of the Vali and Odin Fields
The joint ventures encompass gross 2P gas reserves of approximately 141 petajoules (PJ), with over 80% of these reserves uncontracted and available for development. These reserves are strategically located onshore in the Cooper Basin, close to existing infrastructure and gas gathering systems at Moomba, facilitating efficient supply to east coast energy markets through contracts with major buyers such as AGL and ENGIE.
Vintage’s Managing Director, Neil Gibbins, highlighted the attractiveness of these assets, noting the scarcity of opportunities to acquire interests in large, uncontracted gas reserves with established supply contracts and infrastructure. He emphasized that recent appraisal work has confirmed the reliability of reservoirs and wells, underpinning a shift from appraisal to production-focused operations.
Funding and Transaction Conditions
The proposed acquisition of Metgasco’s stakes is priced at $5.9 million, matching the deemed sale offer for Bridgeport’s interests. Vintage is exploring several funding avenues, including bringing in new joint venture partners with the financial capacity to support the project and potentially raising equity capital. The company has initiated engagement with potential partners to support this strategic transition.
Completion of the transactions is contingent upon securing funding commitments by 28 December 2025, obtaining shareholder and ministerial approvals, and receiving necessary third-party consents, including from AGL. The formal sale agreement is expected to be executed shortly, with target completion dates extending into early 2026.
Assumption of Liabilities and Contractual Obligations
As part of the acquisition, Vintage will assume associated joint venture assets and liabilities, including a remaining $3.39 million liability related to a gas pre-payment from AGL under the Vali Gas Field Gas Supply Agreement. The company will also fund Metgasco’s cash call obligations for the joint ventures during the transition period, with provisions for loan forgiveness if the transaction completes.
Exclusivity arrangements are in place until the end of 2025, and a break fee mechanism protects Vintage should Metgasco’s board fail to support the transaction or competing offers arise.
Outlook and Market Implications
This consolidation positions Vintage Energy to better capitalise on the Southern Flank’s gas potential, shifting focus from exploration and appraisal to production and commercialisation. With a significant portion of reserves uncontracted, the company is poised to capture market opportunities amid evolving east coast gas demand dynamics.
Investors will be watching closely as Vintage navigates funding arrangements and regulatory approvals, which will be critical to unlocking the full value of these assets.
Bottom Line?
Vintage’s move to consolidate Southern Flank gas assets sets the stage for a production-focused growth phase, but funding and approvals remain pivotal.
Questions in the middle?
- Will Vintage secure the necessary funding and new joint venture partners to complete the acquisitions?
- How will the potential equity capital raising impact Vintage’s share structure and valuation?
- What are the implications of ASX’s ongoing review under Listing Rule 11 for transaction timing and shareholder approvals?