Vintage Energy Reports 13% Revenue Drop, 25% Production Decline in December Quarter

Quarterly Financial and Operational Overview

Vintage Energy Ltd has released its December 2025 quarterly report, revealing a modest decline in sales revenue to $0.78 million, down 13% from the previous quarter. This reduction is primarily attributed to a 25% drop in production, which fell to 0.06 petajoule equivalent (PJe). Despite these headwinds, the company maintained a stable cash position of $1.67 million and net debt of $8.33 million, reflecting disciplined financial management amid operational challenges.

The company’s Managing Director, Neil Gibbins, highlighted ongoing efforts focused on the second phase of the Production Uplift Program, aimed at de-watering and enhancing gas output from the Toolachee formation at the Vali gas field. While initial gas flows have been achieved, water production has not declined as expected, prompting further analysis and mitigation strategies to optimise well performance.

Strategic Moves in the Southern Flank Joint Ventures

A key highlight of the quarter was Vintage Energy’s strategic initiative to reform its Southern Flank Joint Ventures (ATP 2021 and PRL 211). The company executed a conditional agreement to acquire Metgasco’s 25% interest in these joint ventures for $5.9 million, following shareholder approval secured in January 2026. Vintage is also negotiating to acquire Bridgeport’s 25% stakes, aiming to consolidate ownership and reinvigorate activity in the permits.

This consolidation is expected to shift the joint ventures’ focus from aggressive appraisal to cash-generating production, with plans to drill new wells and apply for South Australian Gas Incentive Grants to support these activities. The move signals Vintage’s commitment to unlocking value and enhancing production in the Cooper Basin region.

Asset Divestment and Operational Highlights

During the quarter, Vintage completed the divestment of its 25% interest in the Victorian exploration licence PEP 171 to Beach Energy Limited for $1 million. This sale aligns with the company’s strategy to prioritise resources towards its core Southern Flank operations.

Operationally, the Odin and Vali gas fields experienced downtime largely due to maintenance and infrastructure issues outside Vintage’s control. Odin-1 and Odin-2 wells were online for 74 and 60 days respectively, with average daily gas production slightly lower than the previous quarter. At Vali, dewatering efforts continue with the installation of a capillary string and planned surfactant injection to improve gas flow rates.

Outlook and Funding Considerations

Vintage Energy is actively pursuing initiatives to boost cash flow and production, including the Southern Flank JV acquisition and potential new joint venture partnerships. The company has applied for government grants to support drilling programs and remains confident in accessing alternative funding sources such as debt, equity, and asset sales if necessary.

While the production uplift program is still in its early stages and subject to operational uncertainties, these strategic moves position Vintage to potentially stabilise and grow its production base in the medium term.