Vintage Energy Limited Annual Report 2020

FY2020 Annual Report · Vintage Energy Limited

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Annual
Report
2020

Vintage Energy Ltd Annual Report 2020Competent persons statement

The hydrocarbon resource estimates in this report
have been compiled by Neil Gibbins, Managing
Director, Vintage Energy Ltd. Mr Gibbins has over
35 years of experience in petroleum geology and is
a member of the Society of Petroleum Engineers. Mr
Gibbins consents to the inclusion of the information
in this report relating to hydrocarbon Contingent
and Prospective Resources in the form and context
in which it appears. The Contingent and Prospective
Resource estimates contained in this report are in
accordance with the standard definitions set out
by the Society of Petroleum Engineers, Petroleum
Resource Management System.

Contents

A message from the Chairman and Managing Director

Review of Operations

20 Reserves and Resources Statement

24 Directors’ Report

36 Auditor’s Independence Declaration

37 Corporate Governance Statement

38 Statement of Profit or Loss and Other Comprehensive Income

39 Statement of Financial Position

40 Statement of Changes in Equity

41 Statement of Cash Flows

42 Notes to the Financial Statements

63 Directors’ Declaration

Independent Auditor’s Report

Information Pursuant to the Listing requirement of the ASX

69 Glossary

74 Corporate Directory

Vintage Energy Ltd Annual Report 2020A message from
the Chairman and
Managing Director

and information provided by the Federal, South
Australian and Queensland Governments.
These actions ensured the safety and well-being
of our employees and contractors, as well as
supported the long-term viability of the business.
We are thankful to all of our stakeholders who
have supported us during this busy and rewarding
year. Included on this list are the contractors
working on-site, our joint venture parties, the
State government support with cross-border
logistics, as well as our industry bodies, APPEA
and SACOME, who assisted with approvals that
allowed us to proceed in the current restrictive
COVID environment.

Even though a lot of other companies delayed
programs, we delivered a safe, high impact
project with Vali-1 ST1 that we believe will soon be
generating sustainable returns to our shareholders.
A special mention goes to our team at Vintage.
While we often talk about the talent we have within
our organisation, it is truly when discoveries like
Vali-1 ST1 and Nangwarry-1 are made that this
talent is on full display.

Our team has great experience and maturity, but
Vintage Energy is still young as a listed company.
Nevertheless, it is the depth of knowledge that
saw the Vintage team deliver our two discoveries
during the last, most challenging, financial year.
One of these is our first gas discovery as an
operator. What makes this operated discovery
all the more special is that it is in a familiar
setting, the Cooper Basin, where we have had
much success in our ‘past lives’. Also pleasing
was the efficient and safe completion of all the
wells in which we participated.

Reg Nelson, Chairman (left) and
Neil Gibbins, Managing Director (right)

What a year it has been for Vintage Energy Ltd.
Challenging on many levels, with the outbreak of
COVID-19, but also very rewarding, with the team
at Vintage delivering on both operational and
corporate fronts. We drilled four wells, fracture
stimulated one well, completed two farm-ins and
also won a gazettal bid which further grew our
footprint in the Cooper Basin. Corporately, we
were successful with an oversubscribed capital
raising in the latter part of the financial year, which
was completed under the dark cloud of COVID-19.

COVID-19 has impacted everyone’s lives in some
way shape or form, and we only hope that you,
your families and loved ones are staying safe and
taking the necessary precautionary measures to
help to keep this virus contained. The Board and
management acted expeditiously in response
to COVID-19 and worked within the guidelines

Safety will always be our number one priority as
we pursue our quest for gas and oil discoveries
to supply markets very much in need of these
vital commodities.

We have more than delivered on the promises
made when we listed on the ASX just over two
years ago. We raised $30 million to build a portfolio
of quality assets for oil and gas exploration and
appraisal. We not only achieved this objective, but
then delivered two discoveries in quick time. To
complete the stimulation and testing of the Vali-1
ST1 discovery, we raised $3 million through a share
placement and SPP in April and May. Due to the
COVID-19 pandemic, which drove the exceptional
crash in the oil price and financial markets more
generally, we decided to only raise the minimum
amount of capital to allow us to prove-up the Vali-1
ST1 discovery. By doing this we sought to minimise
the dilutionary impact that could have resulted
from a larger capital raising with a share price close
to all-time lows.

As many of you are aware, these funds were put
to very good use with the successful and safe
completion of the six-stage fracture stimulation of
the Vali-1 ST1 well and subsequent flow test. The
flow test realised a choked back stabilised raw gas
rate of 4.3 MMscfd (through a 36/64” choke at 942
psi) over a two day period. Transient tests were
also undertaken with rates between 3.7 MMscfd
(through a 24/64” choke at 1,676 psi) and 7.5
MMscfd (through a 32/64” choke at 1,593 psi). The
flow test vindicated our belief in the Southern Flank
of the Cooper Basin as an area that still holds a lot
of potential. The trick is knowing where to drill!

We have now declared Vali a commercial field and
are instigating the process of connecting it via
pipeline to the main trunkline that feeds into the
Moomba gas processing facility. We expect a gas
sales agreement will soon be completed.

Once done, it will trigger the first significant
milestone for Vintage and one of our key strategic

imperatives identified from the outset – delivering
gas into the east coast Australian domestic
market. With first gas production comes cash
flow, and to this end we are confident we will
be generating revenue in the first half of next
calendar year. We hope you share our excitement
and enthusiasm for what is an outstanding
achievement for such a young company.

And it is not just the Vali gas field that has piqued
the interest of the observant investor, but the
number of other leads and prospects around
Vali, including the Odin prospect, which will soon
be targeted. In order to execute on our broader
Cooper Basin program, we have embarked on a
further capital raising. The funds targeted will
be used to connect Vali-1 ST1 to the Moomba
gathering system, drill two further wells in the Vali
Field, drill the Odin prospect, test the Nangwarry
carbon dioxide (“CO2”) discovery, cover the cost of
long lead items for the drilling of the Cervantes oil
prospect in the Perth Basin, fund GG&E desktop
work and be used for working capital. Once these
funds are secured, Vintage will have optionality
regarding alternate financing arrangements into
the future.

The last financial year was focused on building our
Cooper Basin portfolio, delivering permits that play
to our strengths, with geology that we are familiar
with and from which we have generated much
success over time. To this end we farmed-in to ATP
2021, which has already proven a very prospective
permit, with 25 oil and gas leads and prospects
initially identified, and the adjacent PRL 211 permit.
We are the operator for both of these permits,
and as such will be working with our joint venture
parties to undertake further drilling, which will
include the Odin prospect targeted for Q3 FY21.

In June 2020 we announced the success of our bid
for gazettal Block CO2019-E (PELA 679), located in
the south west of the Cooper Basin, in South Australia.

Vintage Energy Ltd Annual Report 2020

Vintage Energy Ltd Annual Report 2020A message from the Chairman and
Managing Director continued...

We secured an initial five-year term, with an option
to renew for a further two five-year terms. We have
already identified five oil prospects on the existing,
albeit poor quality, 2D seismic that covers the permit.

These prospects appear to be similar to those
successfully discovered by our team on the
Western Flank of the Cooper Basin, an area that
includes prolific oil fields such as Bauer and
Callawonga, where our team successfully applied
good quality 3D seismic to identify such prospects.

One of our least understood, overlooked, but
potentially very valuable assets, is the 50% owned
Nangwarry CO2 discovery, which was made in
January 2020 and located in the south east of
South Australia. Although we most certainly
believe this to have significant commercial value,
it does not appear to be seen in this light by the
market - yet. Our investigations have shown that
a reliable source of food grade CO2 is in short
supply, both in Australia and globally.

For example, in April of this year, the USA
Compressed Gas Association submitted a letter to
US Vice-President Mike Pence expressing concerns
that the economic hit caused by the COVID-19
pandemic could affect both the demand for and
production of CO2. Industries seeking such a
source of CO2 include the beverage, wine and,
crucially, medical devices industries.

It is certainly significant in this context that South
Australia’s most profitable historical well was
Caroline-1, a CO2 well that commenced production
in 1967 and produced for nearly fifty years, until
the field was depleted and abandoned in 2017.
Caroline-1 is located near the Nangwarry discovery
and serviced many of these aforementioned
industries over that 50 year period. We are hopeful
that with a successful flow test at Nangwarry-1 we
can replicate the success of Caroline-1 as a vitally
important source of CO2.

The Galilee Basin is still very much in play, and
has become a victim of COVID-19, weather and
operational circumstance. We fracture-stimulated
the Albany-2 well and were about to fracture-
stimulate Albany-1 ST1 when these events turned
against us. We believe the Albany field has the
potential to flow gas at commercial rates. This
is supported by the unstimulated flow rate of
230,000 scfd that was recorded during the drilling
of Albany-1. We are keen to complete the work in the
Albany Field, as the location, geology and east coast
demand for gas make the area an attractive prospect.

In closing, we would like to thank all our
stakeholders who have been extremely dedicated
to meeting the strictest of COVID-19 standards
across our operations during this challenging
period. Pleasingly, we have recorded no cases
of COVID-19 and our operations have continued
unabated, and supported by enhanced health and
safety practices which have now been adopted in
our office and on-site. To the team at Vintage, we
thank you for all your hard work and your delivery
as a team and we also would like to thank the
Board for its ongoing support of the path and
direction taken by Vintage since listing. And finally,
it goes without saying that we would like to thank
those shareholders that have been with us from
the start of this journey and welcome all the new
shareholders that have come on to our register
over the past twelve months. We have already
shown what we are capable of and we look forward
to delivering sustainable returns to you for many
years to come.

Reg Nelson
Chairman

Neil Gibbins
Managing Director

Our experienced and
knowledgeable team has
delivered two discoveries
during the last, most
challenging, financial year

Vintage Energy Ltd Annual Report 2020

7
7

Vintage Energy Ltd Annual Report 2020Review of
operations

New discoveries have given
Vintage line of sight to near-term
production and cash flow

Cooper / Eromanga Basins,
Queensland and South Australia

ATP 2021 (Vintage 50% and operatorship,
Metgasco Ltd (“Metgasco”) 25% and
Bridgeport (Cooper Basin) Pty Ltd 25%)

ATP 2021 is a 370 km2 permit, located on the
Queensland side of the Cooper/Eromanga Basins,
which was identified as a prospective permit
with multiple leads and prospects mapped using
historic 2D and recent 3D seismic data.

The permit is adjacent to a number of gas and
oil fields, and associated pipelines with facilities,
that have produced over 600 Bcf of gas and
11 MMbbl of oil. The target zones within the leads
and prospects in the permit are Permian gas and
Jurassic oil reservoirs, which have historically
been the main producing zones in the Cooper/
Eromanga Basins.

The Vali structure is a robust Permian anticlinal
closure, some 10km2 in area, located in the
southern part of the permit. Permian Toolachee
and Patchawarra formation sandstones within
the closure are proven producing reservoirs
on the southern flank of the Nappamerri Trough.
The Vali structure was identified on the 2016
Snowball 3D seismic survey and is approximately
three kilometres from Kinta-1, a well drilled in
2003 that intersected gas charged sands in
the Patchawarra and Toolachee formations.

The SLR-185 rig, a 1250 HP rig capable of drilling
to 3,500 metres, was secured and mobilised to
site to drill the Vali-1 gas exploration well. Vali-1
spudded on 15 December 2019 and was side-
tracked during drilling, reaching a total depth
(“TD”) of 3,217 metres measured depth (“MD”), in
basement, on 10 January 2020. The well was cased
and suspended as a new field gas discovery with

gas pay interpreted in the Patchawarra Formation.
Gas pay was also interpreted in a Triassic aged
Nappamerri Group sandstone unit and the
Permian aged Toolachee Formation and Tirrawarra
Sandstone. Oil shows were recorded in the
Jurassic aged Westbourne and Birkhead
formations, increasing the prospectivity for oil
in nearby Jurassic closures.

Post drill volumetric assessments for the discovery
were completed, with ERCE independently
certifying 37.7 Bcf (gross) 2C Gas Contingent
Resources in the Patchawarra Formation of the
Vali gas field, which was estimated from over 80
metres of interpreted log net gas pay (porosity
cut-off of 6%) over a gross 312 metre interval in the
Patchawarra Formation. Potential exists to increase
the size of resource with further testing/drilling
addressing possible pay in the Toolachee Formation,
Tirrawarra Sandstone and Nappamerri Group.

Vali Gas Field Patchawarra Formation (100%)

Gas in Place (Bcf)

Contingent Resource (Bcf)

Low

34.0

Mid

84.2

High

216.0

15.2

37.7

Vali Gas Field Patchawarra Formation (50%, Net to Vintage)

Gas in Place (Bcf)

Contingent Resource (Bcf)

Low

17.0

Mid

42.1

High

108.0

7.6

18.8

97.0

48.5

Notes:
1. Contingent Resource volumes have shrinkage applied to account for CO2 and include only hydrocarbon gas. No allowance for Fuel and

Flare has been made.

2. ERCE GIIP volumes and Contingent Resources presented in the tables are the probabilistic totals for all 19 Patchawarra reservoir intervals.

3. Probabilistic totals have been estimated using the Monte Carlo method.

4. Estimates for contingent resources have not been adjusted for development risk.

5. The resources have been classified and estimated in accordance with the PRMS.

6. These resource estimates are as of 2 March 2020 and first disclosed in an ASX release on 3 March 2020.

7. Vintage is not aware of any new data or information that materially affects the estimate above and that all material assumptions and

technical parameters continue to apply and have not materially changed.

Vintage Energy Ltd Annual Report 2020

Review of operations
continued...

Subsequent to year end, fracture stimulation work
was undertaken by Condor Energy Services Pty Ltd
(“Condor”) in July 2020, with six stimulation stages
placed, five in the Patchawarra Formation and one in
the deeper Tirrawarra Sandstone. This was followed
by a flow test of the Vali-1 ST1 well, with a stabilised
raw gas rate, over a two-day period, of 4.3 MMscfd
observed through a 36/64“choke at 942 psi (flowing
well-head pressure). A development concept for the
Vali Field has been completed and estimates a field
life of around 20 years.

PRL 211 (Vintage earning 42.5% and
operatorship, Metgasco earning 21.25%,
Bridgeport (Cooper Basin) Pty Ltd earning
21.25% and Senex Energy Ltd 15%)

PRL 211 is a 98.49 km2 retention licence that is
close to infrastructure and located adjacent to ATP
2021, on the South Australia side of the Cooper
Eromanga Basin. Vintage identified prospectivity
in PRL 211, similar to that in ATP 2021, and farmed-
in to the permit in November 2019 along with its
ATP 2021 joint venture partners. The farm-in to PRL
211 will see Senex free carried through the drilling
of the first well, with Vintage appointed operator.

PRL 211 has an initial five-year term expiring in
October 2022, with an option to renew the
permit for a further five years.

The main target is the Odin structure, which is
fully covered by recent 3D seismic and has gas
potential in the Patchawarra and Toolachee
formations. Odin is located near the producing
reservoirs at the Bow, Beckler and Dullingari fields.
Stratigraphically trapped gas outside of structural
closure, similar to that seen in the Beckler-Bow
field area is also possible within the permit. The
Odin prospect straddles the border between PRL
211 and ATP 2021 and appears similar in form to
the Vali discovery.

Under the terms of the farm-in, Vintage,
Bridgeport and Metgasco will drill a well into
the Odin structure (with Vintage paying 50% of
the estimated cost of the well – approximately

$2.5 million contribution by Vintage for 42.5%
equity). All further work, including the potential to
stimulate and flow test the Odin well will revert to
equity share post farm-in. The well will be located
in PRL 211 with the drilling targeted to take place
in 2021.

The Odin prospect is a four-way dip closure
situated on a structural nose that plunges
north-eastwards into the Nappamerri Trough.
It is prospective for gas in multiple sands of the
Permian aged formations. Seismic mapping
indicates that the Toolachee Formation has
approximately eight metres of structural relief
over nearly 5.2 km2, a chance of success (“COS”)
of 40% and a high chance of development. The
Patchawarra Formation has 15 metres of structural
relief over nearly 2.5 km2, a COS of 32% and a high
chance of development.

Odin Prospective Resources PRL 211 & ATP2021 combined (Bcf)

Formation

Toolachee

Patchawarra

Total

Net to Vintage

Notes:

1U low estimate

2U best estimate

3U high estimate

1.2

2.4

3.6

1.6

4.1

8.5

12.6

5.7

13.5

29.1

42.6

19.0

1. Net to Vintage and 42.5% of the prospective resources in PRL 211.

2. The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate

to undiscovered accumulations.

3. These estimates have both an associated risk of discovery and a risk of development.

4. These prospective resources are estimated as of 14 October 2019 and first reported to the ASX on 22 November 2019.

5. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially
moveable hydrocarbons.

6. The resources have been classified and estimated in accordance with the Petroleum Resource Management System (PRMS).

7. The prospective resources have been estimated based on the interpretation of 3D seismic integrated with offset well data. Probabilistic
methods have been used to estimate the prospective resource in individual reservoirs and the reservoirs have been summed arithmetically.

8. Vintage is not aware of any new data or information that materially affects the estimate above and that all material assumptions and

technical parameters continue to apply and have not materially changed.

9. It is expected that the prospect will be drilled in the second half of FY21, following seismic reprocessing and mapping in December 2019

that confirmed the optimal well location. This reprocessing work did not change the volumetrics.

10. Resource estimates are net of shrinkage.

Vintage Energy Ltd Annual Report 2020

Review of operations
continued...

Block CO2019-E (PELA 679)
(Vintage 100% on award)

Vintage was successful in bidding for Block
CO2019-E (“PELA 679”) in the south west of the
Cooper Basin in South Australia. PELA 679 forms
one of five hydrocarbon exploration licence blocks
released for competitive bidding by the South
Australian Department of Energy and Mining in
2019. Once an appropriate land access agreement
is in place with the Dieri Aboriginal Corporation
RNTBC and the State Government, Vintage will
have a 100% interest in the permit, which will

provide options relating to the financing of
the firm work program through the potential
introduction of a joint venture partner/s.

PELA 679 has both Permian and Jurassic oil
potential, with cumulative oil production of 4.5
MMbbl from two nearby fields, one being the
Worrior Field immediately to the north east.
The permit covers a total area of 393 km2 and
has primarily been targeted for oil exploration.
Seismic data is limited with the majority being
poor quality 2D.

The first exploration well in the region was Pando-1
which was drilled in 1966 and targeted for oil
and gas within a large four-way closure. Despite
Jurassic oil shows, the well was plugged and
abandoned, with Stuart Petroleum Ltd drilling the
Worrior-1 wildcat 37 years later, 750 metres to the
south east of Pando-1. 50 km2 of 3D seismic and
ten development wells have resulted in production
in excess of 4 MMbbl of oil to date from the Worrior
oil field (Senex Energy 70%, Cooper Energy 30%),
primarily from the McKinlay Member, Birkhead
Formation and Hutton Sandstone.

The committed work program for the permit
over the initial five year licence term includes
geological and geophysical studies comprising
basin modelling, petrophysics and a rock physics
trending study, acquisition of 100 km2 of 3D
seismic and the drilling of two wells.

Vintage has identified three Jurassic four-way
closures and one Permian Patchawarra Formation
stratigraphic play from the sparse 2D seismic
it has mapped to date. The “morphology” of
basement-influenced Jurassic structures located
up-dip and along trend of Permian stratigraphic
hydrocarbons, is analogous to Beach Energy Ltd’s
prolific Western Flank play, where the Pennington
Oil Field and ultimately the Bauer Field are up-dip
of Permian stratigraphically trapped gas of the
Udacha and Middleton Fields.

Galilee Basin, Queensland

Deeps Joint Venture (Vintage 30%, Comet Ridge
Ltd (“Comet”) 70% and operator)

The stimulation of Albany-2 took place in
December 2019, with the stimulation of Albany-1
ST1 currently on hold.

Albany-1 ST1 was drilled and cased to a total MD
of 2,822 metres, providing access to the full
reservoir section for stimulation and evaluation.
The drilling of Albany-2 and the side-track of
Albany-1 confirmed the Albany Field structural
mapping and the presence of gas between the two
wells, which are approximately seven kilometres
apart. Log analysis at Albany-2 identified gas
in multiple sands of the Lake Galilee Sandstone
reservoir section, demonstrating that reservoir
sandstones extend across the Albany Field and
also showed maximum porosities up to 15% (higher
than those at Albany-1 ST1 over small intervals).
Some stratigraphic variation was observed
between Albany-1 ST1 and Albany-2.

A total of 62 metres of core was acquired in
Albany-2. X-Ray diffraction analysis, which
examines the constituent minerals of the rock to
assist with the selection of the stimulation fluid,
was undertaken on cored reservoir samples.

Gas shows were observed in the B sand section
of Albany-1 ST1, which had flowed gas to surface
at 0.23 MMscfd in 2018 without any fracture
stimulation. Shows of equal and better magnitude
were evident in multiple sands in the section not
penetrated in Albany-1, offering encouragement
for what a flow test of the full reservoir section
might offer post-stimulation. In Albany-2, log
analyses and gas shows indicate the presence
of gas in each of the Lake Galilee Sandstones.

Vintage reached the pre-determined Stage 2
funding point of $10 million (gross) during the year,
which triggered an increase in Vintage’s equity in
the Galilee Basin Deeps Joint Venture (“GBDJV”)
from 15% to 30%.

Albany-2 was the first well to be stimulated in the
Lake Galilee Sandstone of the Galilee Basin, and it
is likely there will be optimisation of the stimulation
approach based on the outcomes from this well
and Albany-1 ST1.

A two well appraisal drilling program in the Albany
gas field was completed in the first half of the year.

Vintage Energy Ltd Annual Report 2020Review of operations
continued...

Vintage Contingent Resource, Recoverable Gas

Contingent Resource (PJ, net to Vintage)

Tenement

Vintage Interest

Field

Method

ATP 744

30%

Albany

Probabilistic

Chance of Development Product Type

125

High

Gas

Notes:

1. As at 31 July 2018 and first detailed in the 2018 Prospectus

2. Albany Field previously named the Carmichael Field

3. Vintage acquired a 30% interest in the Albany structure (in the Galilee Sandstone reservoir – “Deeps”) after the drilling and testing of
Albany-1, the completion of the Koburra 2D seismic program and the drilling of Albany-2

4. Reference Comet Ridge Market announcement of 5 August 2015 quoting independently certified Contingent Resources

5. Estimates are in accordance with the PRMS (SPE, 2007) and Guidelines for Application of the PRMS (SPE, 2011)

6. No Reserves were estimated

7. Sales gas recovery and shrinkage have been applied to the Contingent Resource estimation, with losses included from field use,

as well as fuel and flare gas

8. Vintage is not aware of any new data or information that materially affects the estimate above and that all material assumptions

and technical parameters continue to apply and have not materially changed

Onsite operations at the Albany gas field were
suspended due to heavy rainfall and resultant
flooding of the area in February 2020. Currently
all operational activity, including stimulation of
Albany-1 ST1, is on hold.

Otway Basin, South Australia/Victoria

PEL 155 (Vintage 50%, Otway Energy Pty Ltd 50%
and operator)

Easternwell Rig 106 spudded the Nangwarry-1
well on 1 December 2019, with TD reached at
4,300 metres MD in the Pretty Hill Formation.
The fully automated capability of the rig improved
the efficiency of the drilling process, with drilling
finishing ahead of schedule.

Gas shows were observed in the top Pretty Hill
Sandstone and mid Pretty Hill Sandstone. Six
reservoir fluid samples were taken at three depth
intervals within the top Pretty Hill Sandstone, with
laboratory-based analyses of samples yielding
CO2 content in excess of 90%. These results and
evaluation of wireline log data indicate a CO2 column
that is 90 metres, with a further 45 metres subject
to confirmation by testing. This is a 25-70 metre
increase over the initially estimated 65 metre column.

The well has been cased and suspended for further
evaluation, including the mid Pretty Hill Sandstone,
which could not be fully evaluated at the time.

Subsequent to year end, a recoverable CO2 booking
for the Nangwarry-1 discovery was made. Employing
a method consistent with the June 2018 Society
of Engineers Petroleum Resources Management
System (“PRMS”) methodology, a gross Best Case
of 25.1 Bcf recoverable CO2 was estimated by ERC
Equipoise Pte Ltd (“ERCE”).

Under PRMS, volumes of non-hydrocarbon by-
products cannot be included in any Reserves
or Resources classification. ERCE assessed the
sales gas volumes attributable to the Nangwarry-1
discovery using a methodology consistent with
that prescribed by the PRMS, with its independent
assessment of a Best Case 25.1 Bcf gross
recoverable CO2 made for the top Pretty Hill
Sandstone of the Nangwarry CO2 discovery (12.6
Bcf net to Vintage). This compares extremely well
with other commercial Otway Basin CO2 fields such
as Caroline (~15 Bcf), which was in production for
approximately 50 years, and Boggy Creek (~14 Bcf).

Gross PEL 155 Nangwarry Field Pretty Hill Sandstone

CO2 Sales Gas (Bcf)

Unrisked hydrocarbon Contingent Resources (Bcf)

Low

7.8

Best

25.1

High

82.1

0.8

2.6

8.8

Net PEL 155 Nangwarry CO2 Field Pretty Hill Sandstone

CO2 Sales Gas (Bcf) 50% VEN

Unrisked hydrocarbon Contingent Resources (Bcf) 50% VEN

Low

3.9

Best

12.6

High

41.1

0.4

1.3

4.4

Vintage Energy Ltd Annual Report 2020Review of operations
continued...

Notes:
1. As at 31 August 2020 and first detailed in the ASX release of the same date.
2. Recoverable CO2 and Contingent Resource estimates reported here are ERCE estimates.
3. Gross Contingent Resources represent a 100% total of estimated recoverable hydrocarbon volumes.
4. Resource estimates have been made and classified in accordance with the PRMS guidelines and methodology.
5. Recoverable CO2 estimates have been made and classified using a method consistent with the PRMS guidelines and methodology.
6. Net recoverable CO2 attributable to Vintage represents the fraction of gross recoverable CO2 allocated to Vintage, based on its 50% interest

in PEL 155.

7. Volumes reported here are “unrisked” in the sense that no adjustment has been made for the risk that the project may not be developed in the

form envisaged or may not go ahead at all (i.e. no Chance of Development factor has been applied).

8. Chance of Development for the recoverable CO2 has been estimated to be 75% by Vintage and agreed by ERCE. This is based on the ability
to establish a skid mounted processing facility at the well-head, adequate road access for trucks to transport the CO2 to market, similar
reservoirs developed nearby such as Caroline-1, and high downstream demand for food grade CO2.

9. Hydrocarbon Contingent Resources have been sub-classified as “Development Unclarified” under the PRMS by ERCE and are assigned as

Consumed in Operations, that is used as fuel for the CO2 plant. The key contingencies are a final investment decision on development, committing
to a CO2 sales agreement, any other necessary commercial arrangements, and obtaining the usual regulatory approvals for production.

10. Recoverable CO2 volumes shown have had shrinkage applied to account for methane and include only CO2 gas.
11. Recoverable CO2 and Contingent Resources presented in the tables are the probabilistic totals for the Pretty Hill Sandstone reservoir interval.
12. Probabilistic totals have been estimated using the Monte Carlo method.
13. Vintage is not aware of any new data or information that materially affects the estimate above and that all material assumptions and technical

parameters continue to apply and have not materially changed

An extended production test of the Nangwarry-1
well is currently being designed and targeted for
the end of 2020. Discussions are progressing
with a number of parties interested in the various
stages of development, production, and purchase
of Nangwarry CO2.

The Cervantes prospect sits within L14, a 39.8 km2
Perth Basin production licence granted over the
Jingemia oil field and surrounds. The licence is in
good standing and not due to expire until June 2025.
To earn 30%, Vintage will pay for 50% of the cost of
the well, and $200k of evaluation and exploration.

PEP 171 (Vintage 25% and operatorship, and
Cooper Energy Ltd 75%)

In June 2020, the Victorian Government legislated
that the moratorium, banning any petroleum
exploration and production in the onshore areas
of Victoria, will be officially lifted from 1 July 2021.
On that date, the first five-year term of the PEP 171
licence will be restarted. New regulations are being
drafted and an updated exploration program will be
proposed and negotiated with the regulator prior to
the restart of the licence.

GSEL 672 (Vintage 100%)

A Gas Storage Exploration Licence (“GSEL”) was
granted to Vintage covering a portion of the South
Australian Otway Basin to the south of PEL 155.
To date, activities have been limited to technical
evaluation, analysis, and review of potential gas
storage options, which include the commercial
aspects of those options.

Perth Basin, Western Australia

Cervantes Structure (L 14) (Vintage earning 30%,
Metgasco earning 30% and RCMA Australia Pty
Ltd (“Jade”), 40%)

Vintage executed a farm-out agreement with
Metgasco and Jade, which will be free carried
through the drilling of the Cervantes oil prospect.
The joint venture is targeting to spud the well in
2021 and has an option to drill a second well into
a separate prospect.

The proposed Cervantes-1 well is expected to cost
$3.7 million (net), with any well costs above a cap
of $8 million (gross) reverting to Vintage’s joint
venture equity level of 30%.

The Cervantes structure is located on an oil
discovery trend, comprised of the Hovea, Jingemia
and Cliff Head oil fields. These fields, in total, have
produced in excess of 27 MMbbl of oil from Permian
reservoirs in the Perth Basin and lie within an oil
fairway around the western and northern section
of the basin. The Cervantes structure is a high-side
fault trap with multiple Permian reservoir units,
sharing strong similarities with the offset oil fields in
terms of structure, potential reservoirs, and access
to a mature oil source rock.

The Permian reservoir targets in the prospect
are the prolific Dongara, Kingia and High Cliff
sandstones which are expected to yield a combined
gross 2U Best Estimate of 15.3 MMbbl (4.6 MMbbl
net to Vintage) of oil. Cervantes has a chance of
success of 28% and a high chance of development
due to its proximity to infrastructure and existing oil
and gas fields. The opportunity for rapid conversion
of prospective resources to producing reserves
exists via a 3rd party oil processing and operations
agreement with L14 operator Jade, which owns and
operates the nearby Jingemia oil processing and
export facility.

Vintage Energy Ltd Annual Report 2020Review of operations
continued...

Cervantes Prospective Oil Resource (MMbbl)

Sandstone

1U low estimate

2U best estimate

3U high estimate

Dongarra

Kingia

High Cliff

Total

Net to Vintage

Notes:

3.7

2.2

0.1

6.0

1.8

7.4

7.1

0.8

15.3

4.6

14.6

22.3

5.0

41.9

12.6

1. Volumetrics sourced from Metgasco.

2. The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to

undiscovered accumulations.

3. These estimates have both an associated risk of discovery and a risk of development.

4. These prospective resources are estimated as of 10 September 2019 and this was the first time they were reported.

5. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable

hydrocarbons.

6. The resources have been classified and estimated in accordance with PRMS.

7. The prospective resources have been estimated based on the interpretation of 3D seismic integrated with offset well data.

8. Probabilistic methods have been used to estimate the prospective resource in individual reservoirs and the reservoirs have been summed

arithmetically.

9. Vintage is not aware of any new data or information that materially affects the estimate above, with all material assumptions and technical

parameters continuing to apply and have not materially changed.

10. It is expected that the prospect will be drilled in the second half of FY21 and that no further material exploration activities, including studies,

further data acquisition and evaluation work will be undertaken prior to that activity.

11. Resource estimates are net of shrinkage.

The Cervantes Joint Venture has retained Aztech
Well Construction Pty Ltd (“Aztech”) to design and
manage the drilling of the Cervantes-1 exploration
well. Aztech has a wealth of experience in the
north Perth Basin, including managing the recent
successful Beharra Springs Deep exploration well.
Aztech conducted the initial scoping of the
well-plan and has started the well design and
planning, including identification and sourcing
of long lead items.

A further survey of the proposed well site was
recommended by the environmental authorities
and will be conducted in September 2020.
Final project environmental approvals are
anticipated by the end of 2020, which will
allow for drilling in 2021.

Bonaparte Basin, Northern Territory

EP 126 (Vintage 100%)

The Northern Territory (“NT”) Government
advised that approximately 50% of the NT could
be declared as reserved areas and is currently
undertaking a consultation process with those
petroleum companies affected by its proposal.
Under the proposal, Sites of Conservation
Significance (“SOCS”) are one of the categories
of land that will be declared ‘no go zones’ for
petroleum exploration and production and be
excised from pre-existing and future petroleum
licence areas. A considerable portion of the
prospective areas within Vintage’s EP 126, in the
Bonaparte Basin, is affected by the proposed
reserved area as SOCS.

A submission has been made to the NT Government
and clearly outlines Vintage’s view that past, current
and future approved land use within the majority
of EP 126 are inconsistent with the declaration of a
reserved area on the basis of a SOCS.

Vintage considers the extent of reserved area
is inconsistent with past petroleum activities,
current pastoral activities and future approved
activities associated with development of
the surrounding Project Sea Dragon prawn
farm. Vintage also considers that effective
environmental management, as approved under
existing petroleum regulations, has already been

demonstrated by past activities in EP 126 and is
sufficient to minimise any environmental impact
in the area. The timeframe of the government
process is currently unclear.

Vintage plans to test the already drilled Cullen-1
well to better understand the ability of the well
to flow natural gas. Vintage believes that there
is an excellent opportunity to find commercial
quantities of natural gas in EP 126 which could
provide favourable economic benefit to the
Northern Territory, in terms of job creation and
the delivery of much needed gas to local industry
and the general market.

Vintage Energy Ltd Annual Report 2020Reserves and
Resources
Statement

Reserves and Resources Statement

At 30 June 2020, Vintage did not hold any booked Reserves.

Contingent Resources

During the reporting period, Vintage acquired its second tranche of 15% equity interest for the ‘Deeps Joint
Venture’, through completion of Stage 2 of the two-stage farm-in process. Consequently, at June 30 2020, Vintage
had earned a 30% share of the independently certified contingent resource booking for the Albany Gas Field. In
addition, the ATP 2021 Joint Venture discovered the Vali gas field and booked a Contingent Resource on that
discovery.

The table below shows the movement in 2C resource during the period 1 July 2019 to 30 June 2020.

Movement in 2C Resource Net to Vintage

Basin

30-Jun-19

Acquisitions/
Divestments

Contingent Resources
to Reserves

Revisions

30-Jun-20

Galilee Basin

Cooper Basin

Total

During 2015, SRK Consulting (Australia) Pty Ltd, (“SRK”), conducted a technical analysis of the available
Carmichael Field seismic and well data for Comet Ridge Ltd. Based on the seismic and petrophysical
interpretations and assessment consistent with the SPE Petroleum Resource Management System (SPE, 2007),
SRK provided an estimate of Contingent Resources for the field. SRK has also been provided with the well data
from Albany-1 and is of the view the well results are consistent with their estimates of contingent resources. Vintage
notes that the Albany-2 well has been drilled and cased and suspended and is not aware of any new data or
information from that activity or otherwise that materially affects the relevant assessment above and that all
material assumptions and technical parameters continue to apply and have not materially changed.

During February/March 2020, ERC Equipoise Pte Ltd (“ERCE”) carried out an independent assessment of the
resources in the Patchawarra Formation of the Vali gas field.

The results of these two assessments are presented in the following tables:

Vintage Contingent Resource by Tenement

Contingent Resource
(PJ, Net to Vintage)

Tenement

Vintage
Interest

Field

Method

Chance of
Development

Product
Type

ATP 744

30%

Albany

Probabilistic

ATP 2021

50%

Vali

Probabilistic

126

High

85%

Gas

Vintage Contingent Resource by Geographical Area

Contingent Resource
(PJ, Net to Vintage)

Tenement

Vintage
Interest

Field

Method

Chance of
Development

Product
Type

ATP 744

30%

Albany

Probabilistic

ATP 2021

50%

Vali

Probabilistic

126

High

85%

Gas

Vintage Energy Ltd Annual Report 2020

Reserves and Resources Statement

(continued)

– “Deeps”) after the drilling and testing of Albany-1, which is close to where Carmichael-1 flowed gas.

Standard
Notes on ATP 744 assessment:
Reserves and resources are reported in accordance with the definitions of reserves, and guidelines set out in the
1. During the reporting period, Vintage acquired a 15% interest in the Carmichael structure (in the Galilee Sandstone reservoir
Petroleum Resources Management System (PRMS) approved by the Board of the Society of Petroleum Engineers
in 2007.
2. Estimates are in accordance with the Petroleum Resources Management System (SPE, 2007) and Guidelines for
This Report has been prepared in accordance with the Code for the Technical Assessment and Valuation of mineral
and Petroleum Assets and Securities for Independent Expert Reports 2005 Edition (“The VALMIN Code”) as well
3. No Reserves were estimated.
as the Australian Securities and Investment Commission (ASIC) Regulatory Guides 111 and 112.
4. Probabilistic methods were used.
5. Sales gas recovery and shrinkage have been applied to the Contingent Resource estimation. The losses include those

Application of the PRMS (SPE, 2011).

from the field use, as well as fuel and flare gas.

Reserves Evaluator
6. These volumes were first reported by Vintage in the September 2018 prospectus for the Initial Public Offering of shares in

Vintage and prior to that by the Comet Ridge Ltd. announcement of 5 August 2015.

SRK Consulting (Australasia) Pty Ltd – Carmichael Structure Contingent
7. The chance of development is classified as high as several commercialisation possibilities exist for future gas supply export.
Resource Assessment
There is the potential for a gas supply to nearby industrial sites. In addition, gas pipeline spurs could be constructed to
connect with the major trunklines at Mooranbah or Barcaldine which would provide access to the general Queensland
SRK is an independent, international group providing specialised consultancy services, with expertise in petroleum
domestic market. Planning studies are underway by pipeline proponents and the Deeps Joint Venture has an memorandum
studies and petroleum related projects. In Australia, SRK have offices in Brisbane, Melbourne, Newcastle, Perth
of understanding (“MOU”) with APA Group with respect to a potential pipeline connection including conceptual studies to
and Sydney and globally in over 40 countries. SRK has completed petroleum reserve and resource assessments
construct larger pipelines to connect more directly into the LNG supply infrastructure. A direct route to Gladstone is one
for many clients in Australia and internationally.
possibility and another is to the hub at Wallumbilla. In May 2019, Comet Ridge Ltd. and Vintage entered into a non-binding
The Contingent Resource for the Carmichael Structure referred to in this report is derived from an independent
Memorandum of Understanding (‘MOU’) with APA Group as a framework of cooperation under which a pipeline could be
report by Dr Bruce McConachie, an Associate Principal Consultant with SRK Consulting (Australasia) Pty Ltd, an
built to connect with existing infrastructure. Jemena Gas Network (‘Jemena’; a subsidiary of SGSP (Australia) Assets Pty
independent petroleum reserve and resource evaluation company. He has disclosed to Vintage, the full nature of
Ltd) was reported (AFR, 10 May 2017) as undertaking feasibility studies for a possible extension from Mt. Isa to SE
the relationship between himself and SRK, including any issues that could be perceived by investors as a conflict
Queensland of its Northern Gas Pipeline (‘NGP’) (currently under construction to connect Tennant Creek in the Northern
of interest.
Territory with Mt. Isa). Following the NT Government’s announcement (NT News 17 April 2018) to lift the moratorium on
fracture stimulation, Jemena intends (Northern Star, 17 April 2018) to progress its plans to extend the NGP.
Dr McConachie is a geologist with extensive experience in economic resource evaluation and exploration. He is a
Comet Ridge is exploring the coal seam gas potential of the overlying “Shallows” and at present is focussing on the southern
member of the American Association of Petroleum Geologists, Society of Petroleum Engineers and Australasian
portions of ATP 744 and ATP 1015. This may provide the opportunity for shared facilities and/or cooperation in the event
Institute of Mining and Metallurgy. His career spans over 30 years and includes production, development and
of success in both the “Shallows” and “Deeps” areas.
exploration experience in petroleum, coal, bauxite and various industrial minerals, covering petroleum exploration
programs, joint venture management, farm-in and farm-out deals, onshore and offshore operations, field evaluation
and development, oil and gas production and economic assessment, with relevant experience assessing petroleum
Notes on ATP 2021 assessment:
resource under PRMS code (2007).

1. Gas In Place and Contingent Resource estimates reported here are ERCE estimates.
The Carmichael Structure Contingent Resources information in this report has been issued with the prior written
2. Gross Contingent Resources represent a 100% total of estimated recoverable volumes.
consent of Dr McConachie in the form and context in which it appears. His qualifications and experience meet the
3. Resource estimates have been made and classified in accordance with the Petroleum Resources Management System
requirements to act as a Competent Person to report petroleum reserves in accordance with the Society of
Petroleum Engineers (“SPE”) 2007 Petroleum Resource Management System (“PRMS”) Guidelines as well as the
4. Net Contingent Resources attributable to Vintage represent the fraction of Gross Contingent Resources allocated to
2011 Guidelines for Application of the PRMS approved by the SPE.

(“PRMS”).

Vintage, based on its 50% interest in ATP 2021.

5. Volumes reported here are “unrisked” in the sense that no adjustment has been made for the risk that the project may not
be developed in the form envisaged or may not go ahead at all (i.e. no Chance of Development factor has been applied).
ERC Equipoise Pte Ltd – Vali Contingent Resource Assessment
6. Chance of Development for the Contingent Resources shown here has been estimated to be 85% by Vintage and agreed
ERCE is an independent consultancy specialising in petroleum reservoir evaluation. Except for the provision of
by ERCE. This is based on proximity to existing infrastructure, development of similar reservoirs by adjacent fields and high
professional services on a fee basis, ERCE has no commercial arrangement with any other person or company
downstream gas demand.
involved in the interests that are the subject of this Contingent Resources evaluation.
7. Contingent Resources have been sub-classified as “Development Unclarified” under the PRMS by ERCE.
8. Contingent Resources volumes shown have had shrinkage applied to account for CO2 and include only hydrocarbon gas.
The work has been supervised by Mr Adam Becis, Principal Reservoir Engineer of ERCE’s Asia Pacific office who
has over 14 years of experience. He is a member of the Society of Petroleum Engineers and also a member of
9. Contingent Resources have been converted from volumes to energy values using a conversion of 1 Bcf = 1.1PJ.
the Society of Petroleum Evaluation Engineers.
10. Contingent Resources presented in the tables are the arithmetic sum of probabilistic totals for all 19 Patchawarra reservoir

No allowance for Fuel and Flare has been made.

intervals.

11. Probabilistic totals have been estimated using the Monte Carlo method.

Reserves and Resources Statement

(continued)

Standard

Reserves and resources are reported in accordance with the definitions of reserves, and guidelines set out in the
Petroleum Resources Management System (PRMS) approved by the Board of the Society of Petroleum Engineers
in 2007.

This Report has been prepared in accordance with the Code for the Technical Assessment and Valuation of mineral
and Petroleum Assets and Securities for Independent Expert Reports 2005 Edition (“The VALMIN Code”) as well
as the Australian Securities and Investment Commission (ASIC) Regulatory Guides 111 and 112.

Reserves Evaluator

SRK Consulting (Australasia) Pty Ltd – Carmichael Structure Contingent
Resource Assessment

SRK is an independent, international group providing specialised consultancy services, with expertise in petroleum
studies and petroleum related projects. In Australia, SRK have offices in Brisbane, Melbourne, Newcastle, Perth
and Sydney and globally in over 40 countries. SRK has completed petroleum reserve and resource assessments
for many clients in Australia and internationally.

The Contingent Resource for the Carmichael Structure referred to in this report is derived from an independent
report by Dr Bruce McConachie, an Associate Principal Consultant with SRK Consulting (Australasia) Pty Ltd, an
independent petroleum reserve and resource evaluation company. He has disclosed to Vintage, the full nature of
the relationship between himself and SRK, including any issues that could be perceived by investors as a conflict
of interest.

Dr McConachie is a geologist with extensive experience in economic resource evaluation and exploration. He is a
member of the American Association of Petroleum Geologists, Society of Petroleum Engineers and Australasian
Institute of Mining and Metallurgy. His career spans over 30 years and includes production, development and
exploration experience in petroleum, coal, bauxite and various industrial minerals, covering petroleum exploration
programs, joint venture management, farm-in and farm-out deals, onshore and offshore operations, field evaluation
and development, oil and gas production and economic assessment, with relevant experience assessing petroleum
resource under PRMS code (2007).

The Carmichael Structure Contingent Resources information in this report has been issued with the prior written
consent of Dr McConachie in the form and context in which it appears. His qualifications and experience meet the
requirements to act as a Competent Person to report petroleum reserves in accordance with the Society of
Petroleum Engineers (“SPE”) 2007 Petroleum Resource Management System (“PRMS”) Guidelines as well as the
2011 Guidelines for Application of the PRMS approved by the SPE.

ERC Equipoise Pte Ltd – Vali Contingent Resource Assessment

ERCE is an independent consultancy specialising in petroleum reservoir evaluation. Except for the provision of
professional services on a fee basis, ERCE has no commercial arrangement with any other person or company
involved in the interests that are the subject of this Contingent Resources evaluation.

The work has been supervised by Mr Adam Becis, Principal Reservoir Engineer of ERCE’s Asia Pacific office who
has over 14 years of experience. He is a member of the Society of Petroleum Engineers and also a member of
the Society of Petroleum Evaluation Engineers.

Vintage Energy Ltd Annual Report 2020

Directors’
Report

24
24

Directors’ Report

The Directors of Vintage Energy Limited (“Vintage” or
“the Company”) present their report together with the
financial statements of the Company for the year ended
30 June 2020 and the Independent Audit Report
thereon.

Director Details

The following persons were Directors of Vintage during
or since the end of the financial year:

Reg Nelson | Chairman

Reg Nelson has a long and distinguished career in the
Australian petroleum industry and is widely respected
within commercial and government circles, for his
successful and innovative leadership. As Managing
Director of ASX-listed Beach Energy Limited (“Beach”),
until retiring from the position in 2015, he led the
company to a position as one of Australia’s top mid-tier
oil and gas companies. He was formerly Director of
Mineral Development for the State of South Australia,
a Director of the Australian Petroleum Production and
Exploration Association (“APPEA”) for eight years and
was APPEA Chairman from 2004 to 2006. He is a
Director of petroleum exploration company FAR
Limited and has been a Director of many Australian
Securities Exchange (“ASX”) listed companies. Reg
was awarded the Reg Sprigg Medal by APPEA in 2009
in recognition of his industry contribution.

Other Directorships - FAR Limited (since May 2015).
Committee memberships - Audit and Risk,
Remuneration and Nomination.

Interest in shares and options

Ordinary shares

Options

Founder’s Rights

13,494,696

1,000,000

1,320,941

Neil Gibbins | Managing Director

Neil Gibbins has over 35 years of technical and
leadership experience in the petroleum industry in a
wide variety of regions in Australia and internationally
and has been involved in many successful exploration,
development and corporate acquisition projects. Neil
was employed at both Esso Australia and Santos
Limited,
in
initially as a geophysicist and
supervisory roles. He moved to Beach in 1997, initially
as Chief Geophysicist, and
then as Exploration
Manager in 2005, and Chief Operating Officer in 2012.
Neil was acting CEO in 2015 and led Beach during its
merger with DrillSearch Energy Ltd in 2016. He is a
member of PESA, SEG, SPE and ASEG.

later

Other Directorships – Nil.

Interest in shares and options

Ordinary shares

Founder’s Rights

Employee incentive rights

12,144,419
1,320,941
1,875,000

Nicholas (Nick) Smart | Non-Executive Director

Nick Smart has over 40 years of corporate experience
and was a full associate member of the Sydney Futures
Exchange, a senior adviser with a national share
broking firm, and has significant international and local
general management experience. He has participated
in capital raisings for numerous private and listed
natural resource companies and technology start-up
companies. This includes commercialisation of the
Synroc process for safe storage of high-level nuclear
waste, controlled
temperature and atmosphere
transport systems and the beneficiation of low rank
coals.

Committee memberships - Chairman Audit and Risk,
Nomination Committee and Remuneration Committee.

Interest in shares and options

Ordinary shares

Options

Founders Rights

6,077,967

1,000,000

1,320,941

Vintage Energy Ltd Annual Report 2020

Directors’ Report

(continued)

Significant changes in the state of affairs

Two discoveries were made during the year – natural gas at the Vali-1 ST1 well, in the ATP 2021 permit of the Cooper
and Eromanga Basins, and CO2, at the Nangwarry-1 well, in the PEL 155 permit, onshore Otway Basin.
Ian Howarth | Non-Executive Director

Company Secretary

1,000,000

11,966,732

Simon Gray | Company Secretary / Chief Financial
Officer

Both discoveries have the potential to be on production once appropriate test work and infrastructure connection is
The following person was Company Secretary of
Ian Howarth spent several years as a mining and oil
approved and completed.
Vintage during and since the end of the financial year:
analyst with Melbourne-based May and Mellor. He had
The Company also raised $3,000,000 ($2,250,000 from a share placement and $750,000 from a Share Purchase Plan),
a career in journalism as a senior resources writer at
the funds from which were primarily used to fracture stimulate and flow test the Vali-1 ST1 gas discovery.
The Australian and was the Resources Editor of the
Australian Financial Review for 18 years. He created
Subsequent events
Collins Street Media, one of Australia’s
leading
Simon Gray has over 35 years' experience as a
resources sector consultancies. Clients
included
Fracture stimulation of the Vali-1 ST1 well over six stages was completed, with five stages in the Patchawarra Formation
Chartered Accountant and 20 years as a Partner with
APPEA and several listed companies including Shell
and one in the deeper Tirrawarra Sandstone.
Grant Thornton, a national accounting firm. In his last
Australia. His expertise lies in marketing and assisting
five years at the firm, he was the national head of
in capital raising. Ian has a Certificate in Financial
Successful flow testing of the Vali-1 ST1 well delivered a stabilised raw gas rate, over a two-day period, of 4.3 MMscfd
Energy and Resources for Grant Thornton. Simon
Markets from Securities Institute of Australia.
through a 36/64” choke at 942 psi (flowing well-head pressure).
retired from active practice in July 2015. His key
Other Directorships – Nil.
A development concept for the Vali Field was completed and estimates a field life of around 20 years.
expertise lies in audit and risk, valuations, due
Committee memberships - Audit and Risk, Chair of
diligence and ASX Listings. His qualifications include
A recoverable CO2 booking for the Nangwarry-1 discovery was made, with a gross Best Case of 25.1 Bcf recoverable
the Nomination Committee and Remuneration
B.Ec. (Com). He is a Director and Chief Financial
CO2 estimated by ERCE.
Committee.
Officer of minerals exploration company Havilah
On 9 July 2020, the Company issued 10,694,444 shares to Directors at $0.036 per share, as part of the share capital
Resources Limited and company secretary of several
Interest in shares and options
placement announced on 30 April 2020. The shares were issued after an Extraordinary General Meeting on 29 June
other ASX-listed companies.
2020 obtained shareholder approval for the participation of Directors in the placement. Funds for the placement had
Ordinary shares
been received prior to 30 June 2020.
Options

Principal activities
Mr. Ian Northcott resigned as Alternate Director to Mr. Ian Howarth, , effective 11 August 2020.
Founders Rights

Results for the year

There has been no significant change in the nature of
these activities during the financial year.

The Principal activities of the Company during the year
On 17 September 2020, the Company announced a share placement and rights issue at $0.06 per share to raise
were gas and oil exploration and appraisal.
approximately $15,000,000. The funds raised are to be used for:
Ian Northcott | Alternative to Ian Howarth
(resigned subsequent to year end)

 Vali Field connection into the Moomba gathering system;
 Drilling of two further Vali Field wells;
 Drilling the Odin prospect;


 Geological, geophysical and engineering studies.

Ian Northcott has 42 years' experience in the
upstream petroleum industry in geoscience, reservoir
Testing the Nangwarry CO2 discovery;
engineering and economics. He was co-founder and
Long lead items for drilling the Cervantes prospect; and
The Company incurred an operating loss of $2,205,848
Director of PetroVal Australasia Pty Ltd and for 20
for the Financial Year ended 30 June 2020 ($3,422,786
years specialised in the technical and commercial
2019). Efforts over the financial year focused on
resource
analysis of petroleum
Likely developments, business strategies and prospects
building a robust portfolio of assets and the execution
divestments, mergers, target statements, and capital
of work programs associated with earning equity
The Company will continue to develop its existing suite of exploration assets and will work to identify other assets and
raisings via prospectus. Ian was previously a Director
interests in various strategic joint ventures located in
corporate opportunities that will grow the Company and enhance shareholder value.
of the listed Frontier Petroleum NL. His qualifications
prospective petroleum basins onshore in Australia. The
are a B.Sc. (Hons) in Geology and Grad.Dip.App. Fin.
details of these assets are described in the operations
Directors’ meetings
& Inv.; he is a Fellow of AusIMM and a member of
report in the Annual Report.
Association of Petroleum Geologists (AAPG), Society
On 30 April 2020 the Company announced a capital
The number of meetings of Directors (including meetings of Committees of Directors) held during the year and the
of Petroleum Engineers (SPE) and the Society of
raise via Placement of 62,500,000 ordinary shares,
number of meetings attended by each Director is as follows:
Petrophysicists and Well Log Analyst (SPWLA).
raising $2,250,000, as well a Share Purchase Plan for
20,833,333 ordinary shares to raise an additional
$750,000. Both were over-subscribed.

Ian Northcott resigned as Alternate Director to Mr. Ian
Howarth, subsequent to year end, effective 11 August
2020.

reserves and

1,320,941

Other Directorships – Nil.

Dividends

Interest in shares and options

No Dividends were paid or proposed during the year.

Ordinary shares

Options

Founders Rights

5,911,177

1,000,000

1,320,941

Directors’ Report

(continued)

Significant changes in the state of affairs

Both discoveries have the potential to be on production once appropriate test work and infrastructure connection is
approved and completed.

The Company also raised $3,000,000 ($2,250,000 from a share placement and $750,000 from a Share Purchase Plan),
the funds from which were primarily used to fracture stimulate and flow test the Vali-1 ST1 gas discovery.

Subsequent events

Fracture stimulation of the Vali-1 ST1 well over six stages was completed, with five stages in the Patchawarra Formation
and one in the deeper Tirrawarra Sandstone.

Successful flow testing of the Vali-1 ST1 well delivered a stabilised raw gas rate, over a two-day period, of 4.3 MMscfd
through a 36/64” choke at 942 psi (flowing well-head pressure).

A development concept for the Vali Field was completed and estimates a field life of around 20 years.

A recoverable CO2 booking for the Nangwarry-1 discovery was made, with a gross Best Case of 25.1 Bcf recoverable
CO2 estimated by ERCE.

On 9 July 2020, the Company issued 10,694,444 shares to Directors at $0.036 per share, as part of the share capital
placement announced on 30 April 2020. The shares were issued after an Extraordinary General Meeting on 29 June
2020 obtained shareholder approval for the participation of Directors in the placement. Funds for the placement had
been received prior to 30 June 2020.

Mr. Ian Northcott resigned as Alternate Director to Mr. Ian Howarth, effective 11 August 2020.

On 17 September 2020, the Company announced a share placement and rights issue at $0.06 per share to raise
approximately $15,000,000. The funds raised are to be used for:

 Vali Field connection into the Moomba gathering system;
 Drilling of two further Vali Field wells;
 Drilling the Odin prospect;


 Geological, geophysical and engineering studies.

Testing the Nangwarry CO2 discovery;
Long lead items for drilling the Cervantes prospect; and

Likely developments, business strategies and prospects

The Company will continue to develop its existing suite of exploration assets and will work to identify other assets and
corporate opportunities that will grow the Company and enhance shareholder value.

Directors’ meetings

The number of meetings of Directors (including meetings of Committees of Directors) held during the year and the
number of meetings attended by each Director is as follows:

Vintage Energy Ltd Annual Report 2020

Directors’ Report

(continued)

Significant changes in the state of affairs

Board

Audit and Risk

Remuneration

Both discoveries have the potential to be on production once appropriate test work and infrastructure connection is
approved and completed.

Committee

Meetings

Board Member

Nomination
Committee

Reg Nelson

Ian Howarth

Neil Gibbins
Subsequent events
Nick Smart

Fracture stimulation of the Vali-1 ST1 well over six stages was completed, with five stages in the Patchawarra Formation
and one in the deeper Tirrawarra Sandstone.
Notes to the table above:
A is the number of meetings held
Successful flow testing of the Vali-1 ST1 well delivered a stabilised raw gas rate, over a two-day period, of 4.3 MMscfd
B is the number of meetings attended
through a 36/64” choke at 942 psi (flowing well-head pressure).

A development concept for the Vali Field was completed and estimates a field life of around 20 years.
Share Options granted to Management and Directors during the year
A recoverable CO2 booking for the Nangwarry-1 discovery was made, with a gross Best Case of 25.1 Bcf recoverable
During the financial year 1,000,000 options were issued to the Company Secretary, pursuant to contract. The options
CO2 estimated by ERCE.
vested immediately, are exercisable at any time until 17 September 2021 and have an exercise price of $0.35 per
option.
On 9 July 2020, the Company issued 10,694,444 shares to Directors at $0.036 per share, as part of the share capital
placement announced on 30 April 2020. The shares were issued after an Extraordinary General Meeting on 29 June
The fair value at the date of issue of the options was $20,000.
2020 obtained shareholder approval for the participation of Directors in the placement. Funds for the placement had
been received prior to 30 June 2020.
Performance Rights granted to Management and Directors during the year
Mr. Ian Northcott resigned as Alternate Director to Mr. Ian Howarth, , effective 11 August 2020.
During the financial year the company issued 157,500 performance rights to management. The terms of the rights are
On 17 September 2020, the Company announced a share placement and rights issue at $0.06 per share to raise
disclosed in the Share Based Remuneration section below and had a fair value at the time of issue of $22,049.
approximately $15,000,000. The funds raised are to be used for:
In addition to those issued to management above, on 1 March 2020, 725,000 performance rights relating to
management vested and were converted into ordinary shares on satisfaction of a performance condition.

 Vali Field connection into the Moomba gathering system;
 Drilling of two further Vali Field wells;
 Drilling the Odin prospect;


 Geological, geophysical and engineering studies.

Unissued shares under option
Testing the Nangwarry CO2 discovery;
Long lead items for drilling the Cervantes prospect; and

Unissued ordinary shares of Vintage under option at the date of this report are:

Date options granted

Holder
Likely developments, business strategies and prospects
Directors

13 September 2018

of shares ($)

0.35

13 September 2018

Brokers

0.30

4,000,000

1,500,000

Number under option

Exercise price

19 August 2019

Directors’ meetings

Company Secretary

0.35

1,000,000

Total under option

The number of meetings of Directors (including meetings of Committees of Directors) held during the year and the
number of meetings attended by each Director is as follows:
All options expire on 17 September 2021. Options do not entitle the holder to participate in any share issue of the
Company.

6,500,000

Shares issued during or since the end of the year as a result of exercise of
Options

No options have been exercised during or since the end of the financial year.

Directors’ Report

(continued)

Rights on issue

Rights to ordinary shares issued at the date of this report are:

Founders (1)

Managing Director (2)

Management (3)

Total

Date rights granted

13 September 2018

27 November 2018

13 December 2018

1 June 2019

Exercise price of
shares ($)

Nil

Number

7,925,646

1,875,000

1,448,000

725,000

11,973,646

Notes to the table above:
(1) Founders’ Rights will vest 6 months after 30-day VWAP share price exceeds $0.30/share and otherwise expire after 3 years.
(2) Details of rights held by the Managing Director are outlined in the Share Based Remuneration section below.
(3) Details of rights issued to management are outlined at Note 16 in the Notes to the Financial Statements below.

Environmental legislation

The Company’s oil and gas operations are subject to environmental regulation under the legislation of the respective
State, Territory and Federal Government jurisdictions in which it operates. Approvals, licenses, hearings and other
regulatory requirements are performed by the operators of each permit or lease on behalf of joint operations in which
the Company participates. The Company is potentially liable for any environmental damage from its activities, the extent
of which cannot presently be quantified and would in any event be reduced by insurance carried by the Company or
operator. The Company applies the oil and gas experience of its personnel to develop strategies to identify and mitigate
environmental risks. Compliance by operators with environmental regulations is governed by the terms of respective
joint operating agreements and is otherwise conducted using oil industry best practices. Management actively monitors
compliance with regulations and as at the date of this report is not aware of any material breaches in respect of these
regulations.

Remuneration Report (Audited)

Principles used to determine the nature and amount or remuneration

The remuneration policy of Vintage has been designed to align key management personnel objectives with shareholder
and business objectives by providing a fixed remuneration component and offering other incentives based on
performance in achieving key objectives as approved by the Board. The Board of Vintage believes the remuneration
policy to be appropriate and effective in its ability to attract and retain the best key management personnel to run and
manage the Company, as well as create goal congruence between Directors, executives and shareholders.

The Company’s policy for determining the nature and amounts of emoluments of Board members and other key
management personnel of the Company is as follows:

Remuneration and Nomination

The Remuneration committee oversees remuneration matters and sets remuneration policy, fees and remuneration
packages for Non-Executive Directors and senior executives. The objectives and responsibilities of the Remuneration
Committee are documented in the charter approved by the Board. A copy of the charter is available on the Company’s
website.

The Company’s Constitution specifies that the total amount of remuneration of Non-Executive Directors shall be fixed
from time to time by a general meeting. The current maximum aggregate remuneration of Non-Executive Directors has
been set at $800,000 per annum. Directors may apportion any amount up to this maximum amount amongst the Non-

Vintage Energy Ltd Annual Report 2020

Directors’ Report

(continued)

Significant changes in the state of affairs

Two discoveries were made during the year – natural gas at the Vali-1 ST1 well, in the ATP 2021 permit of the Cooper
Executive Directors as they determine. Directors are also entitled to be paid reasonable travelling, accommodation and
and Eromanga Basins, and CO2, at the Nangwarry-1 well, in the PEL 155 permit, onshore Otway Basin.
other expenses incurred in performing their duties as Directors. The fees paid to Non-Executive Directors are not
Both discoveries have the potential to be on production once appropriate test work and infrastructure connection is
incentive or performance based but are fixed amounts that are determined by reference to the nature of the role,
approved and completed.
responsibility and time commitment required for the performance of the role, including membership of board
committees.
The Company also raised $3,000,000 ($2,250,000 from a share placement and $750,000 from a Share Purchase Plan),
the funds from which were primarily used to fracture stimulate and flow test the Vali-1 ST1 gas discovery.
Non-Executive Director remuneration is by way of fees and statutory superannuation contributions. Non-Executive
Directors do not participate in schemes designed for remuneration of executives and are not provided with retirement
Subsequent events
benefits other than salary sacrifice and statutory superannuation.

Fracture stimulation of the Vali-1 ST1 well over six stages was completed, with five stages in the Patchawarra Formation
Executive Remuneration Policies
and one in the deeper Tirrawarra Sandstone.
The remuneration of the Managing Director is determined by the Remuneration committee and approved by the Board.
Successful flow testing of the Vali-1 ST1 well delivered a stabilised raw gas rate, over a two-day period, of 4.3 MMscfd
The terms and conditions of his employment are subject to review from time to time.
through a 36/64” choke at 942 psi (flowing well-head pressure).
The remuneration of other executive officers and employees is determined by the Managing Director subject to the
A development concept for the Vali Field was completed and estimates a field life of around 20 years.
review of the Remuneration committee. The Company’s remuneration structure is based on a number of factors
including the particular experience and performance of the individual in meeting key objectives of the Company.
A recoverable CO2 booking for the Nangwarry-1 discovery was made, with a gross Best Case of 25.1 Bcf recoverable
CO2 estimated by ERCE.
The remuneration structure and packages offered to executives are summarised below:



On 9 July 2020, the Company issued 10,694,444 shares to Directors at $0.036 per share, as part of the share capital
Fixed remuneration
placement announced on 30 April 2020. The shares were issued after an Extraordinary General Meeting on 29 June
2020 obtained shareholder approval for the participation of Directors in the placement. Funds for the placement had
 Short-term incentive - The Company does not presently emphasise payment for results through the provision of
been received prior to 30 June 2020.
cash bonus schemes or other incentive payments based on key performance indicators. However, the Board
may approve the payment of cash bonuses from time to time in order to reward individual executive performance
in achieving key objectives as considered appropriate by the Board.
On 17 September 2020, the Company announced a share placement and rights issue at $0.06 per share to raise
Long-term incentive – equity grants, which may be granted annually at the discretion of the Board. From time to
approximately $15,000,000. The funds raised are to be used for:
time, the Company may grant retention options or rights as considered appropriate as a long-term incentive for
key management personnel.

Mr. Ian Northcott resigned as Alternate Director to Mr. Ian Howarth, , effective 11 August 2020.

 Vali Field connection into the Moomba gathering system;
 Drilling of two further Vali Field wells;
 Drilling the Odin prospect;


 Geological, geophysical and engineering studies.

The intention of this remuneration is to facilitate the retention of key management personnel in order that the goals of
the business and shareholders can be met. Under the terms of the issue of the retention rights, the rights will vest over
Testing the Nangwarry CO2 discovery;
a period of time, dependent upon company and individual performance.
Long lead items for drilling the Cervantes prospect; and

Remuneration Consultants
The Company did not use any remuneration consultants during the year.
Likely developments, business strategies and prospects

The Company will continue to develop its existing suite of exploration assets and will work to identify other assets and
Remuneration of Directors and key management personnel
corporate opportunities that will grow the Company and enhance shareholder value.
This report details the nature and amount of remuneration for each key management personnel of the company.

Directors’ meetings
Directors and key management personnel
The names and positions held by Directors and key management personnel of the Company during the whole of the
The number of meetings of Directors (including meetings of Committees of Directors) held during the year and the
financial year are:
number of meetings attended by each Director is as follows:

Name

Reg Nelson

Neil Gibbins

Nick Smart

Ian Howarth

Ian Northcott

Simon Gray

Date appointed

10 February 2017

9 November 2015

19 February 2018

9 November 2015

Position

Chairman

Managing Director

Non-Executive Director

Alternative Non-Executive Director

Company Secretary and Chief Financial Officer

Directors’ Report

(continued)

Remuneration Summary Directors and Other Key Management Personnel

2020

Salary
& fees(3)

Share based
remuneration

Super-
annuation

Termination
benefits

Total

Share based
percentage
of total

Performance
related
percentage

Reg Nelson

65,870

Neil Gibbins

306,571

158,082 (1)

Ian Howarth

42,497

Nick Smart

42,497

Ian Northcott

42,010

Simon Gray

91,665

20,000 (2)

6,257

27,328

4,037

3,991

7,980

591,110

178,082

53,630

72,127

491,981

32% 32%

46,534

46,001

119,645

17% -

822,822

2019

Salary
& fees(3)

Share based
remuneration

Super-
annuation

Termination
benefits

Total

Reg Nelson

71,000 (2)

43,500

4,132

118,632

Neil Gibbins

289,090 (1)

289,284

26,027

604,401

Ian Howarth

71,000 (2)

24,750

2,351

98,101

Nick Smart

71,000 (2)

24,750

2,351

98,101

Ian Northcott

71,000 (2)

23,288

2,212

96,500

Simon Gray

65,748

5,700

71,448

573,090

471,320

42,773

1,087,183

Share based
percentage
of total

Performance
related
percentage

60%

48%

72%

73%

48%

Notes to the two tables above:
(1) These amounts are calculated in accordance with accounting standards and represent the amortisation of accounting fair values
of performance rights that have been granted to key management personnel in this or prior financial years. The fair value of
performance rights have been measured using a generally accepted valuation model. The fair values are then amortised over the
entire vesting period of the equity instruments. Total remuneration shown in ‘total’ therefore includes a portion of the fair value of
unvested equity compensation during the year. The amount included as remuneration is not related to or indicative of the benefit
(if any) that individuals may ultimately realise should these equity instruments vest and be exercised.
(2) Relates to Options issued throughout the year, as outlined in the Share Based Payment section below.
(3) Executive salaries include annual leave entitlements

Service agreements

Remuneration and other terms of employment for Executive Directors and other key management personnel are
formalised in a Service agreement.

Details of agreements for Executive Directors and other key management personnel is set out below:

Mr. Neil Gibbins, Managing Director

Base Salary $393,750 (full time equivalent) inclusive of superannuation. The position is a 0.8 full time equivalent.

In the event that the Board requires Mr. Gibbins to permanently transfer to another location outside of the Adelaide
Metropolitan area, Mr. Gibbins may terminate the Agreement and will be entitled to a sum equivalent of his annual
salary. The Company may terminate the Agreement immediately in a number of circumstances including serious
misconduct or failure to carry out the employee’s duties under the Agreement.

The Company and Mr. Gibbins may also terminate the Agreement on three months’ written notice.

Mr. Simon Gray, Company Secretary

Base Salary $230,000 (full time equivalent) inclusive of superannuation. The position is a 0.4 full time equivalent.
The agreement expires on 30 June 2021. The Agreement can be varied or extended as mutually agreed between

Vintage Energy Ltd Annual Report 2020

Directors’ Report

(continued)

Significant changes in the state of affairs

Two discoveries were made during the year – natural gas at the Vali-1 ST1 well, in the ATP 2021 permit of the Cooper
the parties. The agreement also provides for 1,000,000 options exercisable at $0.35 expiring on 17 September 2021.
and Eromanga Basins, and CO2, at the Nangwarry-1 well, in the PEL 155 permit, onshore Otway Basin.
These were issued during the year.
Both discoveries have the potential to be on production once appropriate test work and infrastructure connection is
approved and completed.
Share based Remuneration

The Company also raised $3,000,000 ($2,250,000 from a share placement and $750,000 from a Share Purchase Plan),
During the year, the Company issued 1,000,000 options to Mr. Simon Gray in accordance with his employment
the funds from which were primarily used to fracture stimulate and flow test the Vali-1 ST1 gas discovery.
agreement which are exercisable on a one for one basis at $0.35 per share with an exercise period of up to
17 September 2021. Options carry no voting or dividend rights. The fair value on issue was $20,000.
Subsequent events
In the prior year, the Company issued Options to Directors on listing on the ASX which are exercisable on a one for
one basis at $0.35 per share with an exercise period of up to 17 September 2021. Options carry no voting or dividend
Fracture stimulation of the Vali-1 ST1 well over six stages was completed, with five stages in the Patchawarra Formation
rights.
and one in the deeper Tirrawarra Sandstone.

Performance rights issued under the Employee Incentive Plan and to the Managing Director have been issued under
Successful flow testing of the Vali-1 ST1 well delivered a stabilised raw gas rate, over a two-day period, of 4.3 MMscfd
the following general performance conditions:
through a 36/64” choke at 942 psi (flowing well-head pressure).

Class A performance rights continued employment with the Company for 12 Months from date of commencement or
A development concept for the Vali Field was completed and estimates a field life of around 20 years.
date of award.
A recoverable CO2 booking for the Nangwarry-1 discovery was made, with a gross Best Case of 25.1 Bcf recoverable
Class B performance rights Company books a minimum 2P reserve of 1.0 MMBOE and the executive is still engaged
CO2 estimated by ERCE.
as an employee three years after commencing employment with the company.
On 9 July 2020, the Company issued 10,694,444 shares to Directors at $0.036 per share, as part of the share capital
Class C performance rights at any stage prior to the end three years after signing the employment agreement the
placement announced on 30 April 2020. The shares were issued after an Extraordinary General Meeting on 29 June
Company’s share price (30-day VWAP) reaching a share price (variable in each issue of rights) and still being engaged
2020 obtained shareholder approval for the participation of Directors in the placement. Funds for the placement had
as an executive at the end of the three years.
been received prior to 30 June 2020.

Performance rights issued to Mr. Neil Gibbins pursuant to the resolution at the 27 November 2018 Annual General
Mr. Ian Northcott resigned as Alternate Director to Mr. Ian Howarth, , effective 11 August 2020.
Meeting.
On 17 September 2020, the Company announced a share placement and rights issue at $0.06 per share to raise
Performance rights at the date of this report are:
approximately $15,000,000. The funds raised are to be used for:

Class of Performance
Rights

 Vali Field connection into the Moomba gathering system;
 Drilling of two further Vali Field wells;
 Drilling the Odin prospect;

Class B Performance
Rights

 Geological, geophysical and engineering studies.

Testing the Nangwarry CO2 discovery;
Long lead items for drilling the Cervantes prospect; and

Maximum Number of
Performance Rights

937,500

Performance Condition

At any stage prior to 1 March 2021 the Company books a
minimum proven and probable (2P) reserve of 1.0 million
barrels oil equivalent (MMBOE) and Mr. Gibbins is still
engaged as an employee at 1 March 2021.

Likely developments, business strategies and prospects

937,500

Class C Performance
Rights

At any stage prior to 1 March 2021 the Company’s share
price (30-day volume weighted average price (VWAP))
reaching $0.50 per share, and Mr. Gibbins is still engaged
as an employee at 1 March 2021.

Total

Directors’ meetings

1,875,000

The number of meetings of Directors (including meetings of Committees of Directors) held during the year and the
Performance rights convert to ordinary shares on the completion of the performance conditions.
number of meetings attended by each Director is as follows:
Performance rights carry no dividends or voting rights and when exercisable each right is converted into one ordinary
share. They are excisable at nil value.

Details of performance rights and options granted over ordinary shares that were granted as remuneration to each key
management personnel are set out below:

Employee

Class

Number of
rights granted

Grant Date

Value at
Grant date

Number
converted

Last date

Neil Gibbins

937,500

27 November 2018

196,875

937,500

27 November 2018

158,812

1 March 2021

Directors’ Report

(continued)

Directors and other key management personnel equity remuneration, holdings and transactions

The number of shares in the Company held during the financial year by each Director and other key management
personnel of the Company, including their personal related parties, are set out below:

Name

Reg Nelson

Neil Gibbins

Ian Howarth

Nick Smart

Ian Northcott

Simon Gray

Balance
1 July 2019

9,161,177

8,588,677

8,661,177

5,911,177

Converted rights

Options
Exercised

Net Change
Other

250,186 (i)

166,790 (i)

Balance

9,411,363

8,838,863

8,661,177

6,077,967

5,911,177

83,395 (i)

5,994,572

Notes to the table above:

(i)

Shares were acquired during the year as part of the capital raise announced on 30 April 2020.

The number of Options held during the financial year by each Director and other key management personnel of the
Company, including their personal related parties are detailed below:

Name

Reg Nelson

Neil Gibbins

Ian Howarth

Nick Smart

Ian Northcott

Simon Gray

Balance
1 July 2019

1,000,000

Options
granted

1,000,000

Options Exercised

Balance

1,000,000

The number of Rights held during the financial year by each Director and other key management personnel of the
Company, including their personal related parties are detailed below:

Name

Reg Nelson

Neil Gibbins

Ian Howarth

Nick Smart

Ian Northcott

Simon Gray

Balance
1 July 2019

Rights
converted

Rights
lapsed

Balance

Rights

Founders

1,320,941

3,195,941

1320,941

1,320,941

1,320,941 (i)

3,195,941

1,320,941 (i)

1,320,941

1,320,941 (i)

1,320,941

1,320,941 (i)

1,320,941

1,320,941 (i)

1,320,941

1,320,941 (i)

Notes to the table above:

(i)

Founders rights vest 6 months after the 30 day VWOP exceeds $0.30 per share and otherwise expire 3 years after
issue, on 17 September 2021.

Shares issued on exercise of remuneration options

No shares were issued to Directors or key management as a result of the exercise of options during the financial year.

Employee Incentive Plan

The shareholders of the Company approved an Employee Incentive Plan for employees at the Annual General Meeting
held on 27 November 2018. Performance rights issued pursuant to the Plan to eligible employees other than Directors
and key management personnel as at 30 June 2020 is detailed at Note 16 to the Financial Statements below.

Vintage Energy Ltd Annual Report 2020

Directors’ Report

(continued)

Significant changes in the state of affairs

Two discoveries were made during the year – natural gas at the Vali-1 ST1 well, in the ATP 2021 permit of the Cooper
Transactions with key management personnel
and Eromanga Basins, and CO2, at the Nangwarry-1 well, in the PEL 155 permit, onshore Otway Basin.

An affiliate of the Managing Director is employed with the Company in a technical exploration position, with
Both discoveries have the potential to be on production once appropriate test work and infrastructure connection is
remuneration based on an arm’s length review and at a rate consistent with the position filled. The Managing Director
approved and completed.
has no role in the determination of salary or benefits paid to the employee. Other than the above, there were no other
The Company also raised $3,000,000 ($2,250,000 from a share placement and $750,000 from a Share Purchase Plan),
transactions with other key management personnel.
the funds from which were primarily used to fracture stimulate and flow test the Vali-1 ST1 gas discovery.
END OF REMUNERATION REPORT
Subsequent events
Indemnities given to, and insurance premiums paid for, auditors and
Fracture stimulation of the Vali-1 ST1 well over six stages was completed, with five stages in the Patchawarra Formation
officers
and one in the deeper Tirrawarra Sandstone.

Insurance of officers
Successful flow testing of the Vali-1 ST1 well delivered a stabilised raw gas rate, over a two-day period, of 4.3 MMscfd
through a 36/64” choke at 942 psi (flowing well-head pressure).
During the year, Vintage paid a premium to insure officers of the Company. The officers covered by insurance include
all Directors and Officers.
A development concept for the Vali Field was completed and estimates a field life of around 20 years.

The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be bought
A recoverable CO2 booking for the Nangwarry-1 discovery was made, with a gross Best Case of 25.1 Bcf recoverable
against the officers in their capacity as officers of the Company, and any other payments arising from liabilities incurred
CO2 estimated by ERCE.
by the officers in connection with such proceedings, other than where such liabilities arise out of conduct involving a
On 9 July 2020, the Company issued 10,694,444 shares to Directors at $0.036 per share, as part of the share capital
willful breach of duty by the officers or the improper use by the officers of their position or of information to gain
placement announced on 30 April 2020. The shares were issued after an Extraordinary General Meeting on 29 June
advantage for themselves or someone else to cause detriment to the Company.
2020 obtained shareholder approval for the participation of Directors in the placement. Funds for the placement had
Details of the amount of premium paid in respect of insurance policies are not disclosed, as their disclosure is prohibited
been received prior to 30 June 2020.
under the terms of the contract.
Mr. Ian Northcott resigned as Alternate Director to Mr. Ian Howarth, , effective 11 August 2020.
The Company has not otherwise, during or since the end of the financial year, except to the extent permitted by law,
On 17 September 2020, the Company announced a share placement and rights issue at $0.06 per share to raise
indemnified or agreed to indemnify any current or former officer of the Company against a liability incurred as such by
approximately $15,000,000. The funds raised are to be used for:
an officer.

Indemnity of auditors

 Vali Field connection into the Moomba gathering system;
 Drilling of two further Vali Field wells;
 Drilling the Odin prospect;


 Geological, geophysical and engineering studies.

The Company has agreed to indemnify its auditors, Grant Thornton Audit Pty Ltd, to the extent permitted by law, against
any claim by a third party arising from the Company’s breach of its agreement. The indemnity requires the Company
to meet the full amount of any such liabilities including a reasonable amount of legal costs.

Testing the Nangwarry CO2 discovery;
Long lead items for drilling the Cervantes prospect; and

Proceedings of behalf of the Company
Likely developments, business strategies and prospects
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
The Company will continue to develop its existing suite of exploration assets and will work to identify other assets and
behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking
corporate opportunities that will grow the Company and enhance shareholder value.
responsibility on behalf of the Company for all or part of those proceedings.

Directors’ meetings
Non-audit services
The number of meetings of Directors (including meetings of Committees of Directors) held during the year and the
During the year, Grant Thornton Audit Pty Ltd, the Company’s auditors, performed certain other services in addition to
number of meetings attended by each Director is as follows:
their statutory audit duties.

The Board has considered the non-audit services provided during the year by the auditor and is satisfied that the
provision of those non-audit services during the year is compatible with, and did not compromise, the auditor
independence requirements of the Corporations Act 2001 for the following reasons:



all non-audit services were subject to the corporate governance procedures adopted by the Company and have

been reviewed by the Directors to ensure they do not impact upon the impartiality and objectivity of the auditor.

the non-audit services do not undermine the general principles relating to auditor independence as set out in

APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s

own work, acting in a management or decision-making capacity for the Company, acting as an advocate for the

Company or jointly sharing risks and rewards.

Details of the amounts paid to the auditors of the Company, Grant Thornton Audit Pty Ltd, and its related practices for
audit and non-audit services provided during the year are set out in Note 23 to the financial statements.

A copy of the Auditor’s Independence Declaration as required under s.307C of the Corporations Act 2001 is included
on the next page of this financial report and forms part of this Directors’ Report.

Signed in accordance with a resolution of the Directors.

Reg Nelson
Chairman

30 September 2020

Vintage Energy Ltd Annual Report 2020

Auditor’s Independence Declaration

To the Directors of Vintage Energy Limited

Level 3, 170 Frome Street
Adelaide SA 5000

Correspondence to:
GPO Box 1270
Adelaide SA 5001

T +61 8 8372 6666

Level 3, 170 Frome Street
Adelaide SA 5000

Correspondence to:
GPO Box 1270
Adelaide SA 5001

T +61 8 8372 6666

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Vintage
Energy Limited for the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have been:

a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

b no contraventions of any applicable code of professional conduct in relation to the audit.
Auditor’s Independence Declaration

To the Directors of Vintage Energy Limited

GRANT THORNTON AUDIT PTY LTD
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Vintage
Chartered Accountants
Energy Limited for the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have been:

a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

b no contraventions of any applicable code of professional conduct in relation to the audit.

J L Humphrey
Partner – Audit & Assurance

Adelaide, 30 September 2020
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants

J L Humphrey
Partner – Audit & Assurance

Adelaide, 30 September 2020

Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

www.grantthornton.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

www.grantthornton.com.au

delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one

another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to

Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to

Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

Corporate Governance Statement

The Board is committed to achieving and demonstrating the highest standards of corporate governance. As such, the
Company has adopted the third edition of the Corporate Governance Principles and Recommendations which was
released by the ASX Corporate Governance Council on 27 March 2014 and became effective for financial years
beginning on or after 1 July 2014.

The Company’s Corporate Governance Statement for the financial year ending 30 June 2020 is dated as at
30 September 2020 and was approved by the Board on 30 September 2020. The Corporate Governance Statement is
available on Vintage’s website at https://www.vintageenergy.com.au/governance-policies.html

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

www.grantthornton.com.au

Level 3, 170 Frome Street

Adelaide SA 5000

Correspondence to:

GPO Box 1270

Adelaide SA 5001

T +61 8 8372 6666

Level 3, 170 Frome Street

Adelaide SA 5000

Correspondence to:

GPO Box 1270

Adelaide SA 5001

T +61 8 8372 6666

Auditor’s Independence Declaration

To the Directors of Vintage Energy Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Vintage

Energy Limited for the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have been:

a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

b no contraventions of any applicable code of professional conduct in relation to the audit.

Auditor’s Independence Declaration

To the Directors of Vintage Energy Limited

GRANT THORNTON AUDIT PTY LTD

Chartered Accountants

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Vintage

Energy Limited for the year ended 30 June 2020, I declare that, to the best of my knowledge and belief, there have been:

a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

b no contraventions of any applicable code of professional conduct in relation to the audit.

J L Humphrey

Partner – Audit & Assurance

Adelaide, 30 September 2020

GRANT THORNTON AUDIT PTY LTD

Chartered Accountants

J L Humphrey

Partner – Audit & Assurance

Adelaide, 30 September 2020

Grant Thornton Audit Pty Ltd ACN 130 913 594

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

www.grantthornton.com.au

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients

and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International

Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are

delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one

another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to

Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to

Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients

and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International

Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are

delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one

another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to

Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to

Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

Vintage Energy Ltd Annual Report 2020

Statement of Profit or Loss and Other
Comprehensive Income

For year ended 30 June 2020

Interest income

Joint Venture recoveries

Other income

Depreciation expense

Exploration expense

Key management personnel option expense

Initial Public Offer costs

Employee benefits expense

Other expenses

(Loss) before income tax

Income tax benefit

(Loss) for the year

Other comprehensive income

Total comprehensive income (loss) attributable to owners of the
company for the year

Notes

30 June
2020
$

105,888

1,279,738

35,979

(190,648)

(54,200)

(20,000)

30 June
2019
$

367,305

(44,834)

(40,878)

(284,000)

(429,440)

(2,333,939)

(1,742,617)

(1,028,666)

(1,248,322)

(2,205,848)

(3,422,786)

(2,205,848)

(3,422,786)

(2,205,848)

(3,422,786)

Earnings per share
Basic (loss) per share from continuing operations (cents)
Diluted (loss) per share from continuing operations (cents)

(0.0079)

(0.0157)
(0.0160)

This statement should be read in conjunction with the notes to the financial statements.

Statement of Financial Position

As at 30 June 2020

Current Asset

Cash and cash equivalents

Trade and other receivables

Total current assets

Non-Current Assets

Property, plant and equipment

Exploration and evaluation assets

Total non-current assets

Total Assets

Current Liabilities

Trade and other payables

Deferred grant income

Provisions

Other financial liabilities

Total current liabilities

Non-Current Liabilities
Provisions

Total non-current liabilities

Total Liabilities

Net Assets/(Liabilities)

Equity

Share capital

Reserves

Accumulated (losses)

Total Equity / (Deficit)

Notes

30 June
2020
$

30 June
2019
$

3,443,239

22,296,212

378,307

125,372

3,821,546

22,421,584

169,539

150,384

28,942,270

12,149,492

29,111,809

12,299,876

32,933,355

34,721,460

163,332

198,539

320,380

682,251

482,726

2,475,000

98,404

3,056,130

925,000

1,607,251

3,981,130

31,326,104

30,740,330

36,891,576

34,392,805

867,181

574,330

(6,432,653)

(4,226,805)

31,326,104

30,740,330

This statement should be read in conjunction with the notes to the financial statement

Vintage Energy Ltd Annual Report 2020

Statement of Changes in Equity

For the year ended 30 June 2020

Note
s

Share
capital

Accumulated
losses

Share
based
payments
reserve

Total equity /
(deficit)

Balance at 1 July 2018

6,164,409

(804,019)

(Loss) for the year

Other comprehensive income

Total comprehensive (loss) for the year

Total transactions with owners

Issue of ordinary shares at $0.20 – IPO

Issue of ordinary shares on conversion of rights

Fair value of share options issued

Fair value of performance rights issued

Transaction costs

Balance at 30 June 2019

(3,422,786)

30,000,000

436,125

(2,207,729)

(436,125)

402,451

608,004

5,360,390

(3,422,786)

30,000,000

402,451

608,004

(2,207,729)

34,392,805

(4,226,805)

574,330

30,740,330

Balance at 1 July 2019

34,392,805

(4,226,805)

574,330

30,740,330

(Loss) for the year
Other comprehensive income

Total comprehensive (loss) for the year

Total transactions with owners

Issue of ordinary shares at $0.036

Issue of ordinary shares on conversion of rights

Issue of ordinary shares as share-based payments

Fair value of share options issued

Fair value of performance rights issued

Transaction costs

Balance at 30 June 2020

(2,205,848)

2,615,000

87,000

2,334

(205,563)

(87,000)

20,000

359,851

(2,205,848)

2,615,000

2,334

20,000

359,851

(205,563)

36,891,576

(6,432,653)

867,181

31,326,104

This statement should be read in conjunction with the notes to the financial statement

Statement of Cash Flows

For the year ended 30 June 2020

CASH FLOWS FROM OPERATING ACTIVITIES

Payments to suppliers and employees

Payments for exploration and evaluation – expensed

Interest and other income

Net cash (used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for exploration and evaluation

Payments for property, plant and equipment

Cash flows (used in) investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from issues of shares

Payment for share issue costs

Payment of the principal portion of lease liabilities

Net cash from financing activities

Notes

30 June
2020
$

30 June
2019
$

(3,446,993)

(2,787,937)

(54,199)

139,214

(40,879)

367,305

(3,361,978)

(2,461,511)

(18,007,305)

(8,165,832)

(3,450)

(124,904)

(18,010,755)

(8,290,736)

2,854,000

30,000,000

(206,563)

(127,677)

(1,902,325)

2,519,760

28,097,675

Net change in cash and cash equivalents

(18,852,973)

17,345,428

Cash and cash equivalents at the beginning of year

Cash and cash equivalents at end of year

22,296,212

4,950,784

3,443,239

22,296,212

This statement should be read in conjunction with the notes to the financial statement

Vintage Energy Ltd Annual Report 2020

Notes to the Financial Statements

1 Nature of Operations

Vintage is an Australian listed public company, incorporated in Australia and operating in Australia. The principal activities
of the Company are disclosed in the Directors’ Report. Vintage’s registered office and its principal place of business at the
date of this report is 58 King William Road, Goodwood SA 5034.

2 General information and statement of compliance

The general-purpose financial statements of the Company have been prepared in accordance with the requirements of
the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian
Accounting Standards Board (AASB). Compliance with Australian Accounting Standards results in full compliance with the
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).
Vintage Energy Limited is a for-profit entity for the purpose of preparing the financial statements. The financial statements
for the year ended 30 June 2020 were approved and authorised for issue by the Board of Directors on 30 September 2020.

3 Changes in accounting policies

3.1 New and revised standards that are effective for these financial statements

AASB 16 Leases

AASB 16 supersedes AASB 117 Leases, Interpretation 4 Determining whether an Arrangement contains a Lease,
Interpretation 115 Operating Leases-Incentives and Interpretation 127 Evaluating the Substance of Transactions Involving
the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and
disclosure of leases and requires lessees to account for most leases under a single on-balance sheet model.

Lessor accounting under AASB 16 is substantially unchanged from AASB 117. Lessors will continue to classify leases as
either operating or finance leases using similar principles as in AASB 117. Therefore, AASB 16 did not have an impact for
leases where the Company is the lessor.

The Company adopted AASB 16 using the modified retrospective method of adoption with the date of initial application of
1 July 2019. Under this method, the standard is applied retrospectively with the cumulative effect of initially applying the
standard recognised at the date of initial application. The Company elected to use the transition practical expedient
allowing the standard to be applied only to contracts that were previously identified as leases applying AASB 117 and
Interpretation 4 at the date of initial application. The Company has considered applying exemptions for lease contracts
that, at the commencement date, have a lease term of 12 months or less and do not contain a purchase option (‘short-
term leases’), and lease contracts for which the underlying asset is of low value (‘low-value assets’).

The following is a reconciliation of total operating lease commitments at 30 June 2019 to the lease liabilities recognised at
1 July 2019:

Total operating lease commitments disclosed as at 30 June 2019

Discounted using incremental borrowing rate

Total lease liabilities recognised under AASB 16 at 1 July 2019

249,000

(42,647)

206,353

The effect of adopting AASB 16 as at 1 July 2019

Assets

Right of use assets

Liabilities

Other financial liabilities current

Other financial liabilities non-current

Total liabilities

206,353

123,584

82,769

206,353

(a) Nature of the effect of adoption of AASB 16

The Company has lease contracts for office premises. Before the adoption of AASB 16, the Company classified each of
its leases (as lessee) at the inception date as either a finance lease or an operating lease. A lease was classified as a
finance lease if it transferred substantially all of the risks and rewards incidental to ownership of the leased asset to the
Company; otherwise it was classified as an operating lease. Finance leases were capitalised at the commencement of the
lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments.
Lease payments were apportioned between interest (recognised as finance costs) and reduction of the lease liability. In
an operating lease, the leased property was not capitalised, and the lease payments were recognised as rent expense in
profit or loss on a straight-line basis over the lease term. Any prepaid rent and accrued rent were recognised under
Prepayments and Trade and other payables, respectively. Upon adoption of AASB 16, the Company applied a single
recognition and measurement approach for all leases. The standard provides specific transition requirements and practical
expedients, which has been applied by the Company.

(b) Leases previously accounted for as operating leases

The Company recognised right-of-use assets and lease liabilities for those leases previously classified as operating leases,
except for short-term leases and leases of low-value assets. The right-of-use assets for most leases were recognised
based on the carrying amount as if the standard had always been applied, apart from the use of incremental borrowing
rate at the date of initial application. In some leases, the right-of-use assets were recognised based on the amount equal
to the lease liabilities, adjusted for any related prepaid and accrued lease payments previously recognised. Lease liabilities
were recognised based on the present value of the remaining lease payments, discounted using the incremental borrowing
rate at the date of initial application.

The Company also applied the available practical expedients wherein it:

• Used a single discount rate of 5% to a portfolio of leases with reasonably similar characteristics;

• Relied on its assessment of whether leases are onerous immediately before the date of initial application;

• Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application; and

• Used hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

Based on the foregoing, as at 1 July 2019:

• Right-of-use assets of $206,353 were recognised as property, plant and equipment in the Statement of Financial

Position;

• Additional lease liabilities of $206,353 (included in Other financial liabilities) were recognised.

The adoption of AASB 16 has not had a significant impact on the Company's financial results. During the year, the
Company recognised $123,812 depreciation in relation to the right-of-use asset, per Note 9, as well as interest expense
of $2,472. These expenses were offset by a reduction in other expenses (reclassification of rental expenses) of $127,677.

AASB Interpretation 23 Uncertainty over Income Tax Treatment

The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the
application of AASB 112 Income Taxes. It does not apply to taxes or levies outside the scope of AASB 12, nor does it
specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The
Interpretation specifically addresses the following:

Vintage Energy Ltd Annual Report 2020

 Whether an entity considers uncertain tax treatments separately



The assumptions an entity makes about the examination of tax treatments by taxation authorities

How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates

How an entity considers changes in facts and circumstances

An entity has to determine whether to consider each uncertain tax treatment separately or together with one or more other
uncertain tax treatments. The approach that better predicts the resolution of the uncertainty needs to be followed. The
Company applies significant judgement in identifying uncertainties over income tax treatments. Since the Company
operates in a complex multinational environment, it assessed whether the Interpretation had an impact on its consolidated
financial statements. Upon adoption of the Interpretation, the Company considered whether it had any uncertain tax
positions. The interpretation did not have an impact on the consolidated financial statements of the Company.

4 Summary of accounting policies

4.1 Overall considerations

The financial statements have been prepared using the significant accounting policies and measurement bases
summarised below.

4.2 Basis of preparation

The financial statements have been prepared on the basis of historical cost except, where applicable, for the revaluation
of certain non-current assets and financial instruments. All amounts are presented in Australian dollars, unless otherwise
noted.

The following significant accounting policies have been adopted in the preparation and presentation of the financial report.

4.3 Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with financial institutions and other short-term,
highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes on value, net of outstanding bank overdrafts.

Income taxes

4.4
Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in other
comprehensive income or directly in equity.

Current income tax assets and/or liabilities comprise those obligations to, or claims from, the Australian Taxation Office
(ATO) and other fiscal authorities relating to the current or prior reporting periods that are unpaid at the reporting date.
Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current
tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts
of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill or
on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or
accounting profit. Deferred tax on temporary differences associated with investments in subsidiaries and joint ventures is
not provided if reversal of these temporary differences can be controlled by the Company and it is probable that reversal
will not occur in the foreseeable future.

Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their
respective period of realisation, provided they are enacted or substantively enacted by the end of the reporting period.

Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised against future taxable
income, based on the Company’s forecast of future operating results which is adjusted for significant non-taxable income
and expenses and specific limits to the use of any unused tax loss or credit. Deferred tax liabilities are always provided
for in full.

Deferred tax assets and liabilities are offset only when the Company has a right and intention to set off current tax assets
and liabilities from the same taxation authority.

Changes in deferred tax assets or liabilities are recognised as a component of tax income or expense in profit or loss,
except where they relate to items that are recognised in other comprehensive income (such as the revaluation of land) or

directly in equity, in which case the related deferred tax is also recognised in other comprehensive income or equity,
respectively.

4.5 Provisions

Provisions are recognised when the Company has a present obligation as a result of a past event, the future sacrifice of
economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at
reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured
using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party,
the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the
receivable can be measured reliably.

4.6 Estimate of restoration costs

The Company estimates the future removal costs of wells and pipelines at different stages of the development and
construction of assets or facilities. In most instances, removal of assets occurs many years into the future. This requires
judgemental assumptions regarding removal date, future environmental legislation, the extent of reclamation activities
required, the engineering methodology for estimating cost, future removal technologies in determining the removal cost,
and liability specific discount rates to determine the present value of these cash flows. The provision amount represents
the Company’s current best estimate of its restoration obligations to be performed in the future based on current industry
practice and expectations. However, this will be dependent on approval by regulatory authorities prior to restoration
activities being undertaken and may be subject to change.

4.7 Employee Benefits

Provision is made for the Company’s liability for employee benefits arising from services rendered by employees to
reporting date. Employee benefits that are expected to be settled within one year have been measured at the amounts
expected to be paid when the liability is settled, plus related on-costs.

Employee benefits payable later than one year have been measured at the present value of the estimated future cash
outflows to be made for those benefits. Those cash flows are discounted using high quality corporate bonds with terms to
maturity that match the expected timing of cash flows.

4.8

Trade and other Payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year
which are unpaid. The amounts are unsecured and are usually paid according to term.

4.9

Fair value measurement

When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the
fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date; and assumes that the transaction will take place either; in the
principal market; or in the absence of a principal market, in the most advantageous market.

Fair value is measured using the assumptions that market participants would use when pricing the asset or liability,
assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its
highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and
transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair
value measurement, which are described as follows:



Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can
access at the measurement date;
Level 2 - inputs are inputs, other than quoted prices included in Level 1, that are observable for the asset or liability,
either directly or indirectly; and
Level 3 - inputs are unobservable inputs for the asset or liability

Vintage Energy Ltd Annual Report 2020

For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either
not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge
and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an
analysis is undertaken, which includes a verification of the major inputs applied in the last valuation and a comparison,
where applicable, with external sources of data.

4.10 Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is
not recoverable from the Local Taxation Office. In these circumstances, the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. Receivables and payables in the Statement of Financial
Position are shown inclusive of GST. Cash flows are presented in the Statement of Cash Flows on a gross basis, except
for the GST component of investing and financing activities, which are disclosed as operating cash flows.

4.11 Property, plant and equipment

Plant and equipment are stated at cost less accumulated depreciation and impairment. Cost includes expenditure that is
directly attributable to the acquisition of the item. Subsequent costs are included in the asset’s carrying amount or
recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the
item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are
charged to the Statement of Profit or Loss and other comprehensive income during the financial period in which they are
incurred.

All tangible assets have limited useful lives and are depreciated using the straight-line value method over their estimated
useful lives, taking into account estimated residual values, to write off the cost to its estimated residual value, as follows:

– Furniture and fittings: 20%

– Plant and equipment: 33%

Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter,
using the straight-line method.

The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting
period and adjusted if appropriate.

4.12

Impairment of assets

At each reporting date the Company reviews the carrying amounts of its assets to determine whether there is any indication
that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss (if any). Where the asset does not generate cash flows
that are independent from other assets, the Company estimates the recoverable amount of the cash-generating unit to
which the asset belongs. Where a reasonable and consistent basis of allocation can be identified, corporate assets are
also allocated to individual cash-generating units or otherwise they are allocated to the smallest group of cash-generating
units for which a reasonable and consistent allocation basis can be identified.

4.13 Exploration and evaluation costs

Exploration and evaluation expenditure includes costs incurred in the search for hydrocarbon resources and determining
its commercial viability in each identifiable area of interest. Exploration and evaluation expenditure is accounted for in
accordance with the successful efforts method and is capitalised to the extent that:

ii.

iii.

the rights to tenure of the areas of interest are current and the Company controls the area of interest in
which the expenditure has been incurred; and
such costs are expected to be recouped through successful development and exploration of the area of
interest, or alternatively by its sale; or
exploration and evaluation activities in the area of interest have not at the reporting date:



reached a stage which permits a reasonable assessment of the existence or otherwise of economically
recoverable reserves; and
active and significant operations in, or in relation to, the area of interest are continuing. An area of
interest refers to an individual geological area where the potential presence of an oil or a natural gas
field is considered favourable or has been proven to exist, and in most cases, will comprise an individual
prospective oil or gas field.

Exploration and evaluation expenditure which does not satisfy these criteria is written off.

Specifically, costs carried forward in respect of an area of interest that is abandoned or costs relating directly to the drilling
of an unsuccessful well are written off in the year in which the decision to abandon is made or the results of drilling are
concluded. The success or otherwise of a well is determined by reference to the drilling objectives for that well. For
successful wells, the well costs remain capitalised on the Statement of Financial Position as long as sufficient progress in
assessing the reserves and the economic and operating viability of the project is being made. A regular review is
undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that
area of interest. Where an ownership interest in an exploration and evaluation asset is exchanged for another, the
transaction is recognised by reference to the carrying value of the original interest. Any cash consideration paid, including
transaction costs, is accounted for as an acquisition of exploration and evaluation assets. Any cash consideration received,
net of transaction costs, is treated as a recoupment of costs previously capitalised with any excess accounted for as a gain
on disposal of non-current assets. Where a discovered oil or gas field enters the development phase the accumulated
exploration and evaluation expenditure is transferred to oil and gas assets.

4.14

Interest in joint operations

A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement.

Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require the unanimous consent of the parties sharing control.

Under certain agreements, more than one combination of participants can make decisions about the relevant activities
and therefore joint control does not exist. Where the arrangement has the same legal form as a joint operation but is not
subject to joint control, the Company accounts for its interest in accordance with the contractual agreement by recognising
its share of jointly held assets, liabilities, revenues and expenses of the arrangement.

When the Company undertakes its activities under joint operations, the Company as a joint operator recognises in relation
to its interest in a joint operation:








Its assets, including its share of any assets jointly held;
Its liabilities, including its share of any liabilities incurred jointly;
Its revenue from the sale of its share of the output arising from the joint operation;
Its revenue from salary recoveries and overhead charges;
Its share of the revenue from the sale of the output by the joint operation; and
Its expenses, including its share of any expenses incurred jointly.

The Company accounts for its assets, liabilities, revenues and expenses relating to its interest in a joint operation in
accordance with the AASBs applicable to the particular assets, liabilities, revenues and expenses.

4.15 Financial instruments

Recognition, initial measurement and derecognition

Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a
party to the contractual provisions of the instrument. Trade date accounting is adopted for financial assets that are
delivered within timeframes established by marketplace convention.

Financial instruments are initially measured at fair value plus transactions costs where the instrument is not classified as
at fair value through profit or loss. Transaction costs related to instruments classified as at fair value through profit or loss
are expensed to profit or loss immediately.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when
the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is
extinguished, discharged, cancelled or expires. Financial instruments are classified and measured as set out below.

Effective interest rate method

The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability (or
group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant
period. The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through
the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial
asset or financial liability.

Income is recognised on an effective interest rate basis for debt instruments other than those financial assets ‘at fair value
through profit or loss’.

Vintage Energy Ltd Annual Report 2020

Classification and subsequent measurement

Trade and other receivables

Trade and other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market and are stated at amortised cost using the effective interest rate method, less provision for impairment.
Discounting is omitted where the effect of discounting is immaterial. The entity’s cash and cash equivalents, trade and
most other receivables fall into this category of financial instruments.

Financial liabilities

The entity’s financial liabilities include trade and other payables. Non-derivative financial liabilities are subsequently
measured at amortised cost using the effective interest rate method.

Fair value

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to
determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar
instruments and option pricing models.

4.16

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. Financial assets are impaired where
there is objective evidence that as a result of one or more events that occurred after the initial recognition of the financial
asset the estimated future cash flows of the investment have been impacted.

For financial assets carried at amortised cost, the amount of the impairment is the difference between the asset’s carrying
amount and the present value of estimated future cash flows, discounted at the original effective interest rate.

The carrying amount of financial assets including uncollectible trade receivables is reduced by the impairment loss through
the use of an allowance account. Subsequent recoveries of amounts previously written off are credited against the
allowance account. Changes in the carrying amount of the allowance account are recognised in profit.

4.17 Government grants

The Company’s projects at times may be supported by grants received from the federal, state and local governments.
Government grants received in relation to drilling of exploration wells are initially deferred as a liability until the grant is
spent. Once spent it is then recognised as a reduction in the carrying value of exploration and evaluation asset or Income
if the expenditure relating to the grant is expensed.

4.18 Share-based payments

All goods and services received in exchange for the grant of any share-based payment are measured at their fair values.
Where employees are rewarded using share-based payments, the fair values of employees’ services are determined
indirectly by reference to the fair value of the equity instruments granted. This fair value is appraised at the grant date and
excludes the impact of non-market vesting conditions (for example profitability and sales growth targets and performance
conditions).

All share-based remuneration is ultimately recognised as an expense in profit or loss with a corresponding credit to share
option reserve. If vesting periods or other vesting conditions apply, the expense is allocated over the vesting period, based
on the best available estimate of the number of share options expected to vest.

Non-market vesting conditions are included in assumptions about the number of options or rights that are expected to
become exercisable. Estimates are subsequently revised if there is any indication that the number of share options or
rights expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the
current period. No adjustment is made to any expense recognised in prior periods if share options or rights ultimately
exercised are different to that estimated on vesting.

Upon exercise of share options, the proceeds received net of any directly attributable transaction costs are allocated to
share capital.

4.19 Leases

Current year

At inception of a contract, the Company assesses whether a lease exists - that is, does the contract convey the right to
control the use of an identified asset for a period of time in exchange for consideration.

This involves an assessment of whether:



The contract involves the use of an identified asset - this may be explicitly or implicitly identified within the
agreement. If the supplier has a substantive substitution right then there is no identified asset.

The Company has the right to obtain substantially all of the economic benefits from the use of the asset
throughout the period of use.

The Company has the right to direct the use of the asset, that is, decision-making rights in relation to changing
how and for what purpose the asset is used.

At the lease commencement, the Company recognises a right-of-use asset and associated lease liability for the lease
term. The lease term includes extension periods where the Company believes it is reasonably certain that the option will
be exercised.

The right-of-use asset is measured using the cost model where cost on initial recognition comprises of the lease liability,
initial direct costs, prepaid lease payments, estimated cost of removal and restoration less any lease incentives received.
The right-of-use asset is depreciated over the lease term on a straight line basis and assessed for impairment in
accordance with the impairment of assets accounting policy.

The lease liability is initially measured at the present value of the remaining lease payments at the commencement of the
lease. The discount rate is the rate implicit in the lease. However, where this cannot be readily determined then the
Company’s incremental borrowing rate is used.

Subsequent to initial recognition, the lease liability is measured at amortised cost using the effective interest rate method.
The lease liability is remeasured whether there is a lease modification, change in estimate of the lease term or index upon
which the lease payments are based (for example, CPI) or a change in the Company’s assessment of lease term.

Where the lease liability is remeasured, the right-of-use asset is adjusted to reflect the remeasurement or is recorded in
profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Accounting policy applicable to comparative period (30 June 2019)

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are
charged as expenses on a straight-line basis over the life of the lease term. Lease incentives under operating leases are
recognised as a liability and amortised on a straight-line basis over the life of the lease term.

4.20

Going concern

Vintage’s financial statements are prepared on the going concern basis which assumes continuity of normal business
activities and the realisation of assets and settlement of liabilities and commitments in the normal course of business.

During the year ended 30 June 2020 the company recognised a loss of $2,205,848, had net cash outflows from operating
and investing activities of $21,372,773, and had accumulated losses of $6,432,653 as at 30 June 2020. The continuation
of the Company as a going concern is dependent upon its ability to generate sufficient net cash inflows from operating and
financing activities and manage the level of exploration and other expenditure within available cash resources. The
Directors consider that the going concern basis of accounting is appropriate, as the company has the following options:

• The ability to issue share capital under the Corporations Act 2001, by a share purchase plan, share placement or

rights issue;

• The option of farming out all or part of its assets;

• The option of selling interests in the Company’s assets; and

• The option of relinquishing or disposing of rights and interests in certain assets.

In the event that the Company is unsuccessful in implementing one or more of the funding options listed above, such
circumstances would indicate that a material uncertainty exists that may cast significant doubt as to whether the Company
will continue as a going concern and therefore whether it will realise its assets and discharge its liabilities in the normal
course of business and at the amounts stated in the financial report.

This financial report does not include any adjustments relating to the recoverability and classification of recorded asset
amounts or to the amounts and classification of liabilities that might be necessary should the Company not continue as a
going concern.

4.21 Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation
for the current financial year.

4.22 Critical accounting estimates and judgments

The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge
and best available current information. Estimates assume a reasonable expectation of future events and are based on

Vintage Energy Ltd Annual Report 2020

current trends and economic data, obtained both externally and within the Company. Actual results may differ from these
estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the
revision and future periods if the revision affects both current and future periods.

Critical judgements in applying the Company’s accounting policies

The following critical judgement, including estimations, that management has made in the process of applying the
Company’s accounting policies and that had the most significant effect on the amounts recognised in the financial
statements.

Capitalised exploration and evaluation

The Company has capitalised significant exploration and evaluation expenditure on the basis either that this is expected
to be recouped through future successful development or alternatively sale of the areas of interest. If, ultimately, the areas
of interest are abandoned or are not successfully commercialised, the carrying value of the capitalised exploration and
evaluation expenditure would need to be written down to its recoverable amount.

Restoration costs

The Company has recognised restoration costs on the basis of current estimates of the liability. This estimate requires
judgmental assumptions regarding removal date, future environmental legislation, the extent of reclamation activities
required, the engineering methodology for estimating cost, future removal technologies in determining the removal cost,
and liability specific discount rates to determine the present value of these cash flows.

4.23 Operating segments

The Directors have considered the requirements of AASB 8 – Operating Segments and the internal reports that are
reviewed by the chief operating decision maker (the Board) in allocating resources and have concluded at this time there
are no separately identifiable segments.

Loss for the year

Loss for the year from continuing operations includes the following expenses:

Employees benefit expense

Short-term employee benefits – salaries and fees

(1,786,711)

(1,071,114)

30 June
2020
$

30 June
2019
$

Post-employment benefits

Increase in employee benefit provisions

Capitalisation of salaries and fees to exploration expenditure

Amortisation of performance rights

Other staff costs

Other expenses

Accounting and audit

Conferences

Consulting expenses

Computer expenses

Insurances

Marketing

Travel and accommodation

Legal fees

Rent (i)

Share registry and exchange costs

Subscriptions and technical publications

Sundry

(168,506)

(100,135)

197,605

(362,185)

(114,007)

(101,755)

(87,749)

195,338

(608,204)

(69,133)

(2,333,939)

(1,742,617)

(58,196)

(3,743)

(139,810)

(121,648)

(118,480)

(169,608)

(56,522)

(133,463)

(74,538)

(28,933)

(123,725)

(42,761)

(23,833)

(325,008)

(95,335)

(96,843)

(98,851)

(92,870)

(177,392)

(134,680)

(44,488)

(46,723)

(69,538)

(1,028,666)

(1,248,322)

(i)

Following adoption of AASB 16, rent has been replaced by
amortisation of right to use assets and interest on lease liabilities.

Income Taxes

The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax
expense in the financial statements as follows:

Loss from operations

Income tax (benefit) calculated at 27.5% (2019: 27.5%)

Non-deductible expenses

Unused tax losses and tax offsets not recognised as deferred tax assets

Tax expense/(benefit)

Tax expense/(benefit) comprises

Current tax expense

Tax losses not brought to account

Deferred tax liability not brought to account

Tax expense (benefit)

30 June
2020
$

30 June
2019
$

(2,205,848)

(3,422,786)

(606,608)

(941,266)

107,219

499,389

250,422

696.344

(499,389)

5,248,738

(696,344)

3,350,286

(4,749,349)

(2,653,942)

Total tax losses not brought to account at 30 June 2020 total $9,041,172 at 27.5% tax rate applicable. For the
Company’s policy on the accounting treatment of income taxes, refer to Note 4.4.

Vintage Energy Ltd Annual Report 2020

7 Cash and cash equivalents

Cash and cash equivalents consist the following:

Cash on hand
Cash at bank (1)

30 June
2020
$

30 June
2019
$

3,443,230

22,296,203

3,443,239

22,296,212

(i)

Cash balance at 30 June 2019 included restricted cash of $2,301,481, held by the PEL 155 joint operation
which could only be utilised for the expenditure programme on PEL 155. Those funds were used in full during
the 2020 drilling program. At 30 June 2020, restricted amounts totalled $137,865, relating to security deposits.

8 Trade and other receivables

Joint venture receivables

GST receivables

Other

9 Property, Plant and Equipment

Furniture and fittings / Plant and equipment – at cost
Balance at 1 July
Additions for the year

Balance as at 30 June

Right of use asset
Balance at 1 July
Additions for the year (i)

Balance as at 30 June

Accumulated depreciation and impairment

Balance at July
Depreciation Expense (ii)

Balance 30 June

Net Book Value

(i)
(ii)

Recognised 1 July 2019, refer note 3.1
Includes right of use asset depreciation of $123,812

30 June
2020
$

261,098

46,298

70,911

30 June
2019
$

47,329

78,043

378,307

125,372

30 June
2020
$
197,919
3,450

201,369

-
206,353

206,353

30 June
2019
$
73,016
124,903

197,919

-
-

47,535

190,648

238,183

2,701

44,834

47,535

169,539

150,384

10 Exploration and Evaluation Assets

Balance at 1 July
Additions for the year (i)
PACE grant brought to account (ii)

Balance at 30 June

30 June
2020
$
12,149,492
19,267,778
(2,475,000)

30 June
2019
$
2,780,793
9,368,699
-

28,942,270

12,149,492

(i)

The increase in exploration and evaluation assets during the year included expenditure on:

Operated
permit
$

Non-operated
permit
$

PEL155 Joint Venture

Galilee Deeps Joint Venture

6,979,611

5,805,069

ATP2021 Joint Venture

5,508,445

Cervantes Joint Venture

545,452

EP126, Bonaparte Basin

Other (PEP171, GSEL672)

234,651

194,550

Total
additions
$

6,979,611

5,805,069

5,508,445

545,452

234,651

194,550

Total additions

5,937,646

13,330,132

19,267,778

Closing
balance
$

6,336,614

13,997,633

5,521,755

545,452

2,327,828

212,988

28,942,270

(ii)

The PACE grant had previously been held as a liability in the Statement of Financial Position.
Refer to Note 12.

11 Trade and other payables

Trade and other payables consist of the following:

Current

Trade payables

Accrued expenses

PAYG withholding

Total trade and other payables

12 Deferred grant income

Share of PACE grant received

30 June
2020
$

62,233

51,458

49,641

163,332

30 June
2019
$

145,187

232,505

105,034

482,726

30 June
2020
$

30 June
2019
$

2,475,000

The PEL 155 joint venture received a Plan for Accelerating Exploration (“PACE”) grant from the South Australian government
to assist in the drilling of an exploration well in PEL 155. The well was successfully drilled during the year, with all grant monies
spent. The joint venture received confirmation from government that the obligations of the grant have been acquitted, with the
amount held as a liability now offset against exploration assets recognised in the Statement of Financial Position.

Vintage Energy Ltd Annual Report 2020

13 Provisions

Current
Employee Benefits

Non-Current

Restoration Provision

Movement in Employee Benefits

Opening balance

Movement for the year

Closing balance

Movement in Restoration Provision

Opening balance (i)

Change during the year

Closing balance

30 June
2020
$

198,539

30 June
2019
$

98,404

925,000

98,404

100,135

198,539

10,665

87,739

98,404

925,000

(i)

The non-current restoration provision represents the obligations for future rehabilitation of EP126 which were
assumed on acquisition. There has been no change in management’s estimate of the future restoration costs.

14 Other financial liabilities

Lease liability (i)
Other financial liability (ii)

(i)

Movement in lease liability:

Opening balance

Lease liability recognised 1 July 2019 (refer note 3.1)

Rent payments made during the year

Interest expense on lease liability recognised during the year

30 June
2020
$
82,380
238,000

320,380

206,353

(126,445)

2,472

82,380

30 June
2019
$
-
-

(ii)

An Extraordinary General Meeting was held on 29 June 2020 to approve the participation of the Company’s
Directors in the FY20 capital raise. The $238,000 received in contribution from Directors at year end was held as
a liability until the resulting shares were issued on 7 July 2020, at which time the proceeds were converted from a
liability to equity.

Issued capital

Ordinary Shares
Founders’ shares

Balance at 30 June

Shares issued and fully paid:
Ordinary Shares (i)
Beginning of the year

Shares allotted during the period

Conversion of Founders’ shares

Conversion of performance rights

Issued under share-based payments

Share issue costs

Total ordinary shares

Founders’ shares

Beginning of the year

Transferred to ordinary shares on conversion

Total Founders’ shares

30 June
2020
$
36,891,576
-

30 June
2019
$
34,392,805
-

36,891,576

34,392,805

30 June
2020
Number

30 June
2020
$

30 June
2019
Number

30 June
2019
$

266,575,739

34,392,805

74,560,007

6,160,209

72,638,889

2,615,000

150,000,000

30,000,000

725,000

16,666

39,628,232

87,000

2,334

(205,563)

2,387,500

339,956,294

36,891,576

266,575,739

4,200

436,125

(2,207,729)

34,392,805

700

(700)

4,200

(4,200)

Total contributed equity at 30 June

339,956,294

36,891,576

266,575,739

34,392,805

(i) Ordinary Shares

Subject to the Constitution and to the terms of issue of Shares, all Shares attract the following rights:




the right to receive notice of and to attend and vote at all general meetings of the Company;
the right to receive dividends; and

in a winding up or a reduction of capital, the right to participate equally in the distribution of the assets of the
Company (both capital and surplus), subject to any amounts unpaid on the Share and, in the case of a reduction,
to the terms of the reduction.

The following shares were issued during the period:

 51,805,556 ordinary shares via a capital placement at $0.036 per share
 20,833,333 ordinary shares via a share purchase plan at $0.036 per share
 725,000 ordinary shares on the conversion of performance rights
 16,666 ordinary shares as part of share-based payments

Vintage Energy Ltd Annual Report 2020

16 Share options and Founders’ Rights

Founders’ Rights

On conversion of the Founders’ Shares, as described above, 7,925,646 Founders’ Rights were issued. The
Founders’ Rights will vest and convert into ordinary fully paid shares in the Company 6 months after the 30-day
VWAP share price exceeding $0.30.

Each of the Founders’ Rights expire at 5:00 pm (ACST) on the Expiry Date being the third anniversary of the issue
date of the Founders’ Rights.

Share Options

During the year the following options were issued. The options expire 17 September 2021.

Date options
granted

20 August 2019

Exercise price
of shares ($)

Number
under option

Fair value of
the option

0.35

1,000,000

20,000

The options have been valued using the Black and Scholes method and the following inputs:

Share price

Option strike price

Number of years

Risk free rate

Volatility

Value per option

0.14

0.35

69%

0.02

Shares issued on exercise of remuneration performance rights

As detailed in the table below, 725,000 shares were issued on conversion of performance rights following the
meeting of performance conditions.

Employee Incentive Plan

The shareholders of the Company approved an Employee Incentive Plan for employees at the Annual General
Meeting held on the 27 November 2018.

The purpose of the Employee Incentive Plan is to provide an incentive for eligible participants to participate in the
future growth of the Company and to offer Options or performance rights to assist with the reward, retention,
motivation and recruitment of eligible participants.

Eligible participants are any full or part-time employee of the Company or a subsidiary, relevant contractors and
casual employees and prospective parties in these capacities. Non-Executive directors (and their associates) are
not eligible to participate in the Employee Incentive Plan.

Subject to any necessary Shareholder approval, the Board may offer Options or performance rights to Eligible
Participants for nil consideration.

The following performance rights have been issued pursuant to the scheme to eligible employees.

Performance
Right

Issued
date

Number

Converted on
performance
condition met

Lapsed

Balance

Value on issue
$

Class A

Class B

Class C

June 2019

725,000

(725,000)

August 2019

157,500

November 2018

724,000

June 2019

362,500

November 2018

724,000

June 2019

362,500

157,500

87,000

22,050

724,000

119,460

362,500

724,000

362,500

43,500

79,640

43,500

In addition to the above, 16,667 shares were issued as part of the plan to Plan participants. The fair value on issue
was $2,334.

Performance rights issued under the Employee Incentive Plan have been issued under the following general
performance conditions:

Class A performance rights continued employment with the Company for 12 months from date of
commencement.

Class B performance rights Company books a minimum 2P reserve of 1.0 MMBOE and the executive is still
engaged as an employee three years after commencing employment with the company.

Class C performance rights at any stage prior to the end three years after signing the employment agreement
the Company’s share price (30-day VWAP) reaching a share price (variable in each issue of rights, in this case
$0.40) and still being engaged as an executive at the end of the three years.

The Rights have been valued using either the Black and Scholes valuation method or the Barrier option method at
the date of issue.

Performance rights issued to the Managing Director – details of which have been disclosed in the
Remuneration report included in the Directors’ report.

Interest in Joint Operations

The Company has an interest in the following unincorporated Joint Operations whose principal activities are oil
and gas exploration:

Galilee Basin ATP-743, ATP-744 and ATP-1015 (i)
Otway Basin PEL 155 (ii)
Otway Basin PEL 171 (iii)
Bonaparte Basin EP 126
Gas Storage Exploration Licence (GSEL 672)
ATP 2021(iv)
PRL 211 (V)
PELA 679(vi)

30 June
2020
% interest
30
50
25
100
100
50
42.5
-

30 June
2019
% interest
15
50
-
100
100
-
-
-

(i) Vintage acquired a further 15% contractual interest in the "Deeps" area of ATP 743, ATP 744, and ATP 1015 in 2020 for a
total of 30% contractual interest; having funded:

 Stage 1a: first $3.35 million of the costs of the Albany-1 drilling and production testing;
 Stage 2: 50% of the costs of 2D seismic, Albany-2 drilling and Albany-1 ST1 drilling to a maximum of $5 million.

(ii) Vintage had held in its Statement of Financial Position, a liability for its 50% share of the PACE grant received until the grant
was formally acquitted during the year.

(iii) Vintage may earn up to a 50% legal and beneficial interest in the License, by:

expending the Initial Farm-in Obligation, ($450,000) to earn an Initial Farm in Interest of 25%; and (provided the Initial Farm-in
Interest has been earned in full) expending the Subsequent Farm-in Obligation ($1,082,000) to earn the Subsequent Farm-in
Interest of 25% (for an aggregate 50% interest).

(iv) Vintage project-managed the planning and drilling of the first well in the joint venture program, with transfer of its 50% interest
in the permit and formal operatorship now having received Ministerial approval.

Vintage Energy Ltd Annual Report 2020

(v) Vintage is paying 50% of the estimated cost of the well – approximately $2.0 million contribution by Vintage for 42.5% equity.

(vi) Vintage was successful in bidding for Block CO2019-E (PELA 679) (“Block E”) in the south west of the Cooper Basin in South
Australia. Once an appropriate land access agreement is in place with the Dieri Aboriginal Corporation RNTBC and the State
Government, Vintage will have a 100% interest in the permit with options to finance the firm work program through the potential
introduction of a joint venture partner/s.

18 Earnings per share

Both the basic and diluted earnings per share have been calculated using the profit attributable to shareholders of
the Company as the numerator. The reconciliation of the weighted average number of shares for the purposes of
diluted earnings per share to the weighted average number of ordinary shares used in the calculation of basic
earnings per share is as follows:

30 June
2020
Number

30 June
2019
Number

278,878,748

217,378,056

278,878,748

217,378,056

Weighted average number of shares used in basic earnings
per share
Weighted average number of shares used in dilutive
earnings per share

Potential ordinary shares are antidilutive when their
conversion to ordinary shares would increase earnings per
share or loss per share. As such, there are no dilutive
securities on issue.

19 Commitments

In order to maintain rights to tenure of exploration permits, the Company is required to perform minimum work
programs specified by various state and national governments. These obligations are subject to renegotiation in
certain circumstances such as when application for an extension permit is made and at other times. The minimum
work program commitments may be reduced by the Company by entering into sale or farm-out agreements or by
relinquishing permit interests. Should the minimum work program not be completed in full or in part in respect of a
permit then the Company’s interest in that exploration permit could be either reduced or forfeited. In some
instances, a financial penalty may result if the minimum work program is not completed. Approved expenditure for
permits may be in excess of the minimum expenditure or work commitment. Where the Company has a financial
obligation in relation to approved joint operation exploration expenditure that is greater than the minimum permit
work program commitments then these amounts are also reported as a commitment.

The current estimated expenditure for approved commitments and minimum work program commitments are as
follows:

Exploration and evaluation

No longer than 1 year

Longer than 1 year but less than 5 years

Operating leases

No longer than 1 year

Longer than 1 year and not longer than 5 years

Longer than 5 years

30 June
2020
$

30 June
2019
$

8,119,000

12,888,000

7,501,000

4,224,000

15,620,000

17,112,000

30 June
2020
$

30 June
2019
$

124,500

249,000

Following the introduction of AASB 16, operating lease commitments are now recognised as liabilities.

20 Financial Instruments

(a)

Capital risk management

The Company manages its capital to ensure that it will be able to continue as a going concern and as at 30 June
2020 has no debt. The capital structure of the Company consists of cash and cash equivalents and equity
attributable to equity holders of the parent comprising issued capital, reserves and accumulated losses.

Financial risk management objectives

(b)
The Company’s management provides services to the business, and manages the financial risks relating to the
operations of the Company.
The Company does not trade or enter into financial instruments, including derivative financial instruments, for
speculative purposes. The use of financial derivatives is governed by the Company’s policies approved by the
Board of directors.

(c)

Categories of financial instruments

Financial assets

Cash and cash equivalents

Trade and other receivables

Total Financial assets

Financial liabilities

Trade and other payables

Lease liability

Other financial liability

30 June
2020
$

30 June
2019
$

3,443,239

22,296,212

378,307

125,372

3,821,546

22,421,584

163,332

82,380

238,000

483,712

482,726

Commodity price risk management

(d)
The Company does not currently have any projects in production and has no exposure to commodity price
fluctuations.

Liquidity risk management

(e)
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial
assets and liabilities.

Liquidity and interest risk tables

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial assets and
liabilities. The tables have been prepared based on the undiscounted cash flows expected to be received/paid by
the Company.

Weighted
average
effective
interest
rate

Less than
1month

1 to
3 months

3 months
to 1 year

1 to 5
years

5
plus

Total

2020

Financial assets:

Non-interest bearing

0.00%

378,307

Variable interest rate

0.75%

3,305,365

Fixed interest rate

1.50%

Financial
liabilities:
Non-interest bearing

137,865

(401,332)

(82,380)

3,305,374

(23,025)

55,485

378,316

3,305,365

137,865

(483,712)

3,337,834

Vintage Energy Ltd Annual Report 2020

Weighted
average
effective
interest
rate

0.00%

0.75%

1.50%

2019

Financial assets:

Non-interest bearing

Variable interest rate

Fixed interest rate

Financial liabilities:
Non-interest bearing

Less than
1month

1 to 3
months

3 months to
1 year

1 to 5
years

5
plus

Total

125,372

4,964,720

2,301,481

7,000,000

8,000,000

30,000

(482,726)

11,964,731

9,944,127

30,000

125,383

7,266,201

15,030,000

(482,726)

21,938,858

Interest rate risk management

(f)
The Company is exposed to interest rate risk as it earns interest at floating rates from a portion of its cash and
cash equivalents. The Company places a portion of its funds into short term fixed interest deposits which provide
short term certainty over the interest rate earned.

Interest rate sensitivity analysis

(g)
If the average interest rate during the year had increased/decreased by 10% the Company’s net loss after tax
would increase/decrease by $36,731.

Credit risk management

(h)
The Company does not have any significant credit risk exposure to any single counterparty or any group of
counterparties having similar characteristics. The credit risk on liquid funds and financial instruments is limited
because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The
carrying amount of financial assets recorded in the financial statements, net of any allowances for losses,
represents the Company’s maximum exposure to credit risk.

Fair value of financial instruments

(i)
The Directors consider that the carrying amount of financial assets and financial liabilities recorded in the financial
statements approximates their fair values (2019: net fair value).

21 Contingent Liabilities

No contingent liabilities exist as at the date of the financial report.

22 Related Party Transactions

(a) Key Management Personnel

Key management of the Company are the executive members of Vintage Energy Limited and its Board of Directors.
Key management personnel remuneration, as detailed in the Company’s Remuneration Report within the Directors’
Report, includes the following expenses:

Short-term employee benefits

Share based payments

Post-employment benefits

(b) Transactions with affiliates

30 June
2020
$

591,110

178,082

53,583
822,775

30 June
2019
$

471,320

573,090
42,773

1,087,183

An affiliate of the Managing Director is employed with the Company in a technical position, with remuneration
based on an arm’s length basis and at a rate consistent to the position filled.

23 Remuneration of Auditors

Audit or review of the financial report

Other Services

Other services include fees for taxation services. The company’s auditor
is Grant Thornton Audit Pty Ltd.

24 Cash Flow Information

Reconciliation of cash flows from operating activities

Loss for the year

Depreciation

Shares options and performance rights expensed

Wages and salaries capitalised

Recoveries offset against exploration

Changes in assets and liabilities:

(Increase)/decrease in trade and other receivables

Increase in provisions

Increase/(decrease) in trade and other payables

30 June
2020
$

30 June
2019
$

48,000

40,000

2,500

2,000

50,500

42,000

30 June
2020
$

30 June
2019
$

(2,205,848)

(3,422,786)

190,648

44,834

382,185

892,204

(197,605)

(195,338)

(1,279,738)

(5,792)

(100,135)

(145,693)

(35,044)

87,749

166,870

(3,361,978)

(2,461,511)

25 Subsequent Events

Other than the matters disclosed below, the Directors are not aware of any other matters or circumstances, other
than those referred to in this report, that have significantly affected or may significantly affect:

-
-
-

the Company’s operations

the results of the operations in the future financial years; or

the Company’s state of affairs in future financial years.

On 9 July 2020, the Company issued 10,694,444 shares to Directors at $0.036 per share, as part of the share
capital placement announced on 30 April 2020. The shares were issued after an Extraordinary General Meeting
on 29 June 2020 obtained shareholder approval for the participation of Directors in the placement. Funds for the
placement had been received prior to 30 June 2020.

Mr. Ian Northcott resigned as Alternate Director to Mr. Ian Howarth, subsequent to year end, effective 11 August
2020.

Vintage Energy Ltd Annual Report 2020

On 17 September 2020, the Company announced a share placement and rights issue at $0.06 to raise
approximately $15,000,000. The funds raised to be used for:

-
-
-
-
-
-

Vali Field connection into the Moomba gathering system;

Drilling of two further Vali Field wells;

Drilling the Odin prospect;

Testing the Nangwarry CO2 discovery;

Long lead items for drilling the Cervantes prospect; and

Geological, geophysical and engineering studies.

26 Company Information

The principal place of business of the company is 58 King William Road, Goodwood SA 5034.

Directors’ Declaration

In the opinion of the Directors of Vintage Energy Limited:

1. The financial statements and notes of Vintage Energy Limited are in accordance with the Corporations

Act 2001, including:

ii.

Giving a true and fair view of its financial position as at 30 June 2020 and of its performance for
the financial year ended on that date;

Complying with Australian Accounting Standards (including
Interpretations) and the Corporations Regulations 2001;

the Australian Accounting

2. The Managing Director and the Chief Financial Officer have each declared that:

ii.

the financial records of the Company for the year ended have been properly maintained in
accordance with section 295A of the Corporations Act 2001;

the financial statements and notes for the financial year comply with the Accounting Standards;
and

iii.

the financial statements and notes give a true and fair view; and

3. There are reasonable grounds to believe that Vintage Energy Limited will be able to pay its debts as and

when they become due and payable.

Signed in accordance with a resolution of the Directors.

R G Nelson

Chairman

Dated the 30th day of September 2020

Vintage Energy Ltd Annual Report 2020

Independent Auditor’s Report

Independent Auditor’s Report
To the Members of Vintage Energy Limited
Independent Auditor’s Report
Report on the audit of the financial report
To the Members of Vintage Energy Limited
Independent Auditor’s Report
Report on the audit of the financial report
Opinion
To the Members of Vintage Energy Limited

Level 3, 170 Frome Street
Adelaide SA 5000

Correspondence to:
GPO Box 1270
Level 3, 170 Frome Street
Adelaide SA 5001
Adelaide SA 5000
T +61 8 8372 6666
Correspondence to:
Level 3, 170 Frome Street
GPO Box 1270
Adelaide SA 5000
Adelaide SA 5001

Correspondence to:
T +61 8 8372 6666
GPO Box 1270
Adelaide SA 5001

T +61 8 8372 6666

Report on the audit of the financial report

We have audited the financial report of Vintage Energy Limited (the Company) which comprises the statement of financial
position as at 30 June 2020, the statement of profit or loss and other comprehensive income, statement of changes in
Opinion
equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and the Directors’ declaration.
We have audited the financial report of Vintage Energy Limited (the Company) which comprises the statement of financial
Opinion
position as at 30 June 2020, the statement of profit or loss and other comprehensive income, statement of changes in
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,
equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
including:
We have audited the financial report of Vintage Energy Limited (the Company) which comprises the statement of financial
significant accounting policies, and the Directors’ declaration.
position as at 30 June 2020, the statement of profit or loss and other comprehensive income, statement of changes in
a giving a true and fair view of the Company’s financial position as at 30 June 2020 and of its performance for the year
equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,
significant accounting policies, and the Directors’ declaration.
including:
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,
a giving a true and fair view of the Company’s financial position as at 30 June 2020 and of its performance for the year
including:

ended on that date; and

a giving a true and fair view of the Company’s financial position as at 30 June 2020 and of its performance for the year
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion

ended on that date; and

b complying with Australian Accounting Standards and the Corporations Regulations 2001.
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
Basis for opinion
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
Basis for opinion
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
our other ethical responsibilities in accordance with the Code.
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
our other ethical responsibilities in accordance with the Code.
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
our other ethical responsibilities in accordance with the Code.

Material uncertainty related to going concern

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

We draw attention to Note 4.20 in the financial statements, which indicates that the Company incurred a net loss of $2,205,848
during the year ended 30 June 2020, had net cash outflows from operating and investing activities of $21,372,933, and had
Material uncertainty related to going concern
accumulated losses of $6,432,653 as at 30 June 2020. As stated in Note 4.20, these events or conditions, along with other
matters as set forth in Note 4.20, indicate that a material uncertainty exists that may cast doubt on the Company’s ability to
We draw attention to Note 4.20 in the financial statements, which indicates that the Company incurred a net loss of $2,205,848
continue as a going concern. Our opinion is not modified in respect of this matter.
Material uncertainty related to going concern
during the year ended 30 June 2020, had net cash outflows from operating and investing activities of $21,372,933, and had
accumulated losses of $6,432,653 as at 30 June 2020. As stated in Note 4.20, these events or conditions, along with other
We draw attention to Note 4.20 in the financial statements, which indicates that the Company incurred a net loss of $2,205,848
matters as set forth in Note 4.20, indicate that a material uncertainty exists that may cast doubt on the Company’s ability to
during the year ended 30 June 2020, had net cash outflows from operating and investing activities of $21,372,933, and had
continue as a going concern. Our opinion is not modified in respect of this matter.
accumulated losses of $6,432,653 as at 30 June 2020. As stated in Note 4.20, these events or conditions, along with other
matters as set forth in Note 4.20, indicate that a material uncertainty exists that may cast doubt on the Company’s ability to
continue as a going concern. Our opinion is not modified in respect of this matter.

Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

www.grantthornton.com.au

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
Grant Thornton Audit Pty Ltd ACN 130 913 594
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
Grant Thornton Australia Limited.
Grant Thornton Audit Pty Ltd ACN 130 913 594
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
Liability limited by a scheme approved under Professional Standards Legislation.
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Grant Thornton Australia Limited.
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
Liability limited by a scheme approved under Professional Standards Legislation.
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to

Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to

Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

www.grantthornton.com.au

Level 3, 170 Frome Street

Adelaide SA 5000

Correspondence to:

GPO Box 1270

Level 3, 170 Frome Street

Adelaide SA 5001

Adelaide SA 5000

T +61 8 8372 6666

Correspondence to:

Level 3, 170 Frome Street

GPO Box 1270

Adelaide SA 5000

Adelaide SA 5001

Correspondence to:

T +61 8 8372 6666

GPO Box 1270

Adelaide SA 5001

T +61 8 8372 6666

Independent Auditor’s Report

To the Members of Vintage Energy Limited

Independent Auditor’s Report

Report on the audit of the financial report

To the Members of Vintage Energy Limited

Independent Auditor’s Report

Opinion

Report on the audit of the financial report

To the Members of Vintage Energy Limited

We have audited the financial report of Vintage Energy Limited (the Company) which comprises the statement of financial

Report on the audit of the financial report

position as at 30 June 2020, the statement of profit or loss and other comprehensive income, statement of changes in

Opinion

equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of

significant accounting policies, and the Directors’ declaration.

We have audited the financial report of Vintage Energy Limited (the Company) which comprises the statement of financial

Opinion

position as at 30 June 2020, the statement of profit or loss and other comprehensive income, statement of changes in

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,

equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of

We have audited the financial report of Vintage Energy Limited (the Company) which comprises the statement of financial

including:

significant accounting policies, and the Directors’ declaration.

position as at 30 June 2020, the statement of profit or loss and other comprehensive income, statement of changes in

a giving a true and fair view of the Company’s financial position as at 30 June 2020 and of its performance for the year

equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,

ended on that date; and

significant accounting policies, and the Directors’ declaration.

including:

b complying with Australian Accounting Standards and the Corporations Regulations 2001.

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,

a giving a true and fair view of the Company’s financial position as at 30 June 2020 and of its performance for the year

b complying with Australian Accounting Standards and the Corporations Regulations 2001.

including:

ended on that date; and

Basis for opinion

ended on that date; and

b complying with Australian Accounting Standards and the Corporations Regulations 2001.

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are

further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are

Basis for opinion

independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and

the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are

Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled

further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are

Basis for opinion

our other ethical responsibilities in accordance with the Code.