Vintage Energy Limited Annual Report 2021

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FY2021 Annual Report · Vintage Energy Limited

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Annual
Report
2021

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A message from the Chairman and Managing Director

10 Review of operations

20 Reserves and resources statement

23 Climate change

25 Directors’ report

37 Auditor’s independence declaration

38 Corporate governance statement

39 Statement of profit or loss and other comprehensive income

40 Statement of financial position

41 Statement of changes in equity

42 Statement of cash flows

43 Notes to the financial statements

61 Directors’ declaration

Independent auditor’s report

65 Schedule of tenements

Information pursuant to the listing requirements of the ASX

68 Glossary

73 Corporate directory

Competent 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 reserves and contingent and prospective
resources in the form and context in which it appears. The reserves and
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.

Vintage Energy Ltd Annual Report 2021

A message from
the Chairman and
Managing Director

While the 2020 financial year was a momentum
builder for Vintage Energy Ltd (“Vintage”) and its
shareholders, financial year 2021 (“FY21”) took
the company to new heights. Vintage is now well
positioned to deliver tangible shareholder value
through first gas production from our Vali gas
field within twelve months.

Amid the continued and relentless COVID-19
pandemic, we managed to safely and successfully
drill three operated wells, one exploration and
two appraisal, fracture stimulate and flow test
Vali-1 ST1, and flow test the Nangwarry-1 carbon
dioxide (“CO2”) discovery. All this activity was
an outstanding achievement, let alone being
undertaken during the pandemic with all the
challenging restrictions. Vintage is now in a very
strong and enviable position, especially when
considering both the tightening of the Australian
east coast gas market and the need for a reliable
source of food grade CO2.

Reg Nelson

Chairman

COVID-19 continues to impact everyone’s lives
and is a virus that we are likely going to live with
for many years to come. We are maintaining a
fastidious approach to the virus and continue
to work within the guidelines and information
provided by the Federal and State Governments.
These actions have ensured the safety and
well-being of our employees and contractors,
which in turn has ensured the continuation of
our operations with minimal disruption.

We have stated this previously, however, the
outstanding operational success of FY21 would
not have been possible without our dedicated

and talented technical team. Their experience
and depth of knowledge was on show this past
year as the Company delivered three successful
Cooper Basin wells that were all cased for future
production. Our team are confident that the
portfolio of permits within the Vintage stable offer
real potential from both a gas and oil perspective.

With the right people on board, looking in the
right areas, the risks associated with discovering
material oil and gas fields is significantly reduced.
What is most pleasing is that our success has come
from the application of fresh ideas to areas that
have previously been worked over and drilled by

major oil and gas companies. These opportunities
will continue to present themselves and we will
ensure we are best positioned to take these on to
further enhance the value proposition for Vintage
and its shareholders.

BurnVoir are assisting the Vintage team through
the process of evaluating non-equity based
funding solutions to progress the Vali, Odin and
Nangwarry projects, which will in turn maximise
value for Vintage shareholders.

Production from the Vali gas field is initially
expected from the three Vali wells and will be
complemented by gas from new fields, such as
the recently discovered Odin Field, over time.
Discussions are well advanced with several
interested parties regarding pre-sales of gas
and potential flow-line infrastructure funding,
to connect the Vali Field to the Moomba gas
gathering network. Along with this, we expect a
gas sales agreement to be executed prior to the
end of this calendar year, which will trigger the first
significant milestone for Vintage in delivering gas
into the Australian east coast domestic market.

The first reserves for the Vali Field were
certified by ERC Equipoise Pte Ltd (“ERCE”),
which completed a rigorous and independent
review of the Vali gas discovery and subsequent
flow results. However, these reserves were
certified prior to the Vali-2 and Vali-3 appraisal
drilling campaign and only included gas in the
Patchawarra Formation reservoir and not the
upside from stacked reservoirs, including
the shallower Nappamerri Group and
Toolachee Formation.

Gas was recovered from the Nappamerri and gas
shows observed in the Toolachee Formation in
Vali-1 ST1. In its report, ERCE estimated gross
reserves for the Patchawarra Formation of 1P of
13.4 petajoules (“PJ”), 2P of 33.2 PJ and 3P
of 86.6 PJ.

Toward the back end of the financial year, the
successful appraisal wells Vali-2 and Vali-3 were
drilled and cased for future production. Vali-2
was drilled to total depth at 3,240 metres, with no

Vintage Energy Ltd Annual Report 2021

Neil Gibbins

Managing Director

The financial year started strongly with the
successful and safe completion of a 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.

The Vali Field was declared a commercial gas field
and we are now in the process of moving toward
first gas. To assist with funding Vali, along with our
other projects, we appointed leading independent
finance advisory group, BurnVoir Corporate
Finance Limited (“BurnVoir”), as financial adviser.

A message from the Chairman and
Managing Director continued...

safety incidents. Wireline logging confirmed a new
gas pool in the Toolachee Formation and confirmed
gas in the Patchawarra Formation and Tirrawarra
Sandstone, with a gas sample recovered via MDT
from the Toolachee Formation.

Vali-2 has stacked interpreted net gas pay
primarily from the Toolachee and Patchawarra
formations, with wireline logging data and MDT
results indicating the Toolachee reservoir should
flow without the need for fracture stimulation.
Due to the slightly lower porosity and permeability
of the sands in the Patchawarra Formation,
fracture stimulation will likely be used to
enhance production.

Vali-3 reached total depth at 3,186 metres, with
no safety incidents. The main objective of Vali-3
was achieved following the intersection of the
Patchawarra Formation in line with the pre-drill
interpretation of the Vali structure. During drilling,
gas shows were observed in the lower Nappamerri
Group, Toolachee, Epsilon and Patchawarra
formations, and the Tirrawarra Sandstone, with oil
shows observed in the late Cretaceous, Jurassic
and Triassic sediments, as well as the uppermost
Permian aged Toolachee Formation. Similar oil
shows were encountered in both the Vali-1 ST1
and Vali-2 wells, which is supportive of oil migration
and hence potential oil accumulations within the
ATP 2021 permit, where 14 oil leads have
been identified.

Material increases in reservoir sand content, and
hence net pay, were encountered through the
Patchawarra Formation in both Vali-2 and Vali-3
when compared with Vali-1 ST1. The Epsilon and
Toolachee Formations are also interpreted to have
gas pay, with the Vintage team especially excited
about the potential of the Toolachee Formation
and the possible production upside it could have
for the ATP 2021 and PRL 211 permits.

The Joint Venture also received final approval

from the Australian Competition and Consumer
Commission ("ACCC"), granting the joint marketing
of gas from the Vali Field. A development concept
for the Vali Field was completed and a field life
of around 20 years is estimated, with up to nine
fracture stimulated vertical wells to be drilled
over the field’s life. This concept will be subject
to optimisation once production data is gathered
from the first three wells connected.

A production profile based on the flow test at
Vali-1 ST1 and the decline characteristics of nearby
fields was also completed. The current base case
development concept for the Vali Field is for initial
raw gas production of ~12 MMscfd (gross) from
three wells, with each well capable of producing 5
MMscfd for total production of around 5 Bcf per
well (on an average well outcome basis). Surface
facilities at Vali will be kept to a minimum, with
cooling, separation and metering, prior to delivery
into existing pipelines.

In PRL 211, the Odin-1 exploration well reached
total depth at 3,140 metres, with extensive gas
shows encountered in sandstones through the
primary target Toolachee, Epsilon and Patchawarra
Formations. These shows were confirmed as gas
pay via the wireline evaluation program, with gas
samples recovered from the Toolachee and
Epsilon Formations.

The well has been cased for future production,
with a possible option being the connection of
the Odin Field into the Vali production network.
Odin-1 addressed a structural Patchawarra
Formation closure, up dip of Strathmount-1, a
well drilled in 1987 and plugged and abandoned
after discovering what was then considered a
non-commercial hydrocarbon accumulation.

After year end, ERCE independently certified 36.4
billion cubic feet (“Bcf”) of gross 2C Contingent
Resources in the Toolachee, Epsilon, Patchawarra
and Tirrawarra Formations of the Odin gas field

located in both PRL 211 and ATP 2021. While all
these formations contributed to the certified
gas volumes, most of the resource is based in
the Toolachee and Patchawarra Formations. The
working interest of the Contingent Resources
represent Vintage’s share of the Gross Contingent
Resources based on its working interest in PRL
211, which is 42.5%, and ATP 2021, which is 50%.
Accordingly, a net 2C Contingent Resource of 16.0
Bcf has been certified by ERCE.

At Nangwarry-1, the extended production test of
the well was completed successfully, with flow
rates beyond commercial requirements recorded
and an upward revision by ERCE of the best
estimates for CO2 within the Nangwarry Field.
Perforations across the targeted zones in the
Top Pretty Hill Formation delivered a raw gas rate
of 10.5-10.8 million standard cubic feet per
day (“MMscfd”) through a 48/64” choke at a
flowing wellhead pressure of 1,415 psi over a
36-hour period.

During the latter part of the flow testing period
a Production Logging Tool (“PLT”) was run, along
with downhole gauges to record pressure data for
the extended flow and shut-in periods. Following
analysis of the main flow test data, and pressure
build-up data, Vintage interpreted no significant
pressure drop in the reservoir as a result of the flow
test, which indicates a sizeable volume of CO2 is
present in the field.

The PEL 155 licence expired on 5 May 2021.
Prior to expiration, an application was made to,
and approved by, the Department of Energy
and Mining for a retention licence (PRL 249)
over the Nangwarry CO2 discovery. As a result,
the Joint Venture retains a significant amount
of land around the Nangwarry Field while it
pursues options for commercial development.
To this end, Vintage was appointed by the Joint
Venture as marketing agent to commercialise the
Nangwarry Field, which coincided with the recent
appointment of an in-house Commercial Manager.
The role of the marketing agent is to investigate

Vintage Energy Ltd Annual Report 2021A message from the Chairman and
Managing Director continued...

and negotiate a beneficial outcome on behalf of
the Joint Venture for commercialisation of the
Nangwarry Field, which is currently ongoing.

The focus for future commercialisation of the
Nangwarry Field CO2 discovery will be on the
production of food grade CO2 and other innovative
uses. Options to progress the project are being
evaluated and discussed with interested parties.
A non-binding Memorandum of Understanding
(“MOU”) with Supagas Pty Ltd (“Supagas”), an
Australian based distributor of gases for domestic,
industrial, medical and other applications was
signed, with Supagas potentially funding work
associated with the preliminary design and
costing of facilities for processing Nangwarry CO2.
In return, the Joint Venture provided Supagas the
opportunity to submit a formal proposal to develop
and/or purchase gas from the Nangwarry Field.

The Nangwarry Field has the potential to provide a
stable and reliable source of food grade CO2, which
is currently in high demand since the depletion of
onshore Otway Basin CO2 well Caroline-1 in 2017.
The main industrial uses for food grade CO2 are
extensive and include:

• • Carbonation of soft drinks, fruit juices

and beer

• • Recharging of natural mineral waters
• • Winemaking
• •

Tapping beer and oxidation prevention
through contact with air

• • Conservation of wine, unfermented grape

juice and fruit juices

• • Medical devices
• • Cold storage / refrigeration
• • Accelerating growth of farm produce as an

• •

atmosphere additive
Preparation of sodium carbonate, alkaline
bicarbonates, lead carbonate and various
organic substances (e.g., salicylic acid)
Production of paints and varnishes and

• •
manufacture of foam rubber

Cervantes remains a prospect that we expect will
be drilled in 2022. The Cervantes prospect sits
within the L14 licence granted over the Jingemia
Oil Field and surrounds. The prospect is a high-side
fault trap of multiple Permian sandstone reservoir
targets (prolific producers in the Perth Basin).
The Chance of Success (“COS”) is 28% and it
has a high chance of development due to its
close proximity to the Jingemia Oil Field and
processing facility. The Cervantes prospect has
a Gross Prospective Resource of: 1U low estimate
of 6.0 million barrels (“MMbbl”) (1.8 MMbbl net),
2U best estimate of 15.3 MMbbl (4.6 MMbbl net),
3U high estimate of 41.9 MMbbl (12.6 MMbbl net)
(refer ASX release dated 15 November 2019).

The Galilee Basin is currently inactive, with the
operator, Comet Ridge Ltd, having suspended
operations. Vintage remains very positive about
the potential and prospectivity of the Galilee
Basin permits and will be seeking to re-establish an
active program. Tenure of the prospective areas of
the acreage, encompassing the main conventional
gas field, prospects and leads, is in the process
of being secured via Potential Commercial Areas,
a type of retention licence that allows further
evaluation for commerciality to be undertaken.

Finally on the permit front, the Bonaparte Basin
has also been in a state of limbo as we continue
to have discussions with the Northern Territory
Government in relation to the declaration of
approximately 50% of the permit, including the
Cullen-1 well site, as a 'Reserved Area' which
currently prevents the ability to work on the well.
We remain hopeful that we will be able to get
access and successfully flow test Cullen-1 in this
prospective area in the not-too-distant future.

A huge thank you goes to all our stakeholders who
have provided the necessary support and patience
in these challenging times. As with last year, we
have recorded no cases of COVID-19 and our

operations have continued with minimal delays.
The hard work and dedication of the Vintage team
continues unabated, so much thanks go to you all
for delivering the amazing results to date. We have
seen a change to the makeup of our share register,
so we welcome those new shareholders, as well as
existing shareholders, and look forward to sharing
the developments of the next financial year with
you. Our capability as a team has been proven in
terms of finding gas, so now we look forward to
showing our capability in terms of delivering that
gas to market. We are entering a new phase as a
company, a phase of tangible value creation that
should deliver a sustainable path for many years
to come.

Reg Nelson
Chairman

Neil Gibbins
Managing Director

Vintage Energy Ltd Annual Report 2021

Review of
operations

Vintage had a busy year operationally with
a total of three wells drilled, one fracture
stimulated and two flow tested. All of these
activities were undertaken in a successful
manner without any safety incidents.

flowing well-head pressure (“FWHP”) of 942 psi over
a two-day period from the Patchawarra Formation.
Transient tests were also undertaken with rates
recorded between 3.7 MMscfd (through a 24/64”
choke at 1,676 psi FWHP) and 7.5 MMscfd (through
a 32/64” choke at 1,593 psi FWHP).

Cooper/Eromanga Basins,
Queensland and South Australia

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

The Vali-1 ST1 flow test program was carried out
safely and as planned, delivering a stabilised gas
flow of 4.3 MMscfd through a 36/64“choke at a

Strong flow rates were achieved during all flow
periods and quick pressure build-ups observed
during all shut-in periods, with pressure levels
quickly approaching around 3,000 psi. All flow
rates were restricted through varying choke
sizes to ensure proppant was not returned
from the formation into the well bore, therefore
avoiding any reduction in the effectiveness
of the stimulation process.

The Patchawarra Formation has both conventional
and low permeability net gas pay distributed over
18 sandstone packages, with production from
the Patchawarra to likely be optimised by
fracture stimulation.

Vali-3 reached total depth at 3,186 metres, with no
safety incidents, and cased for production (in July
2021). The main objective of Vali-3 was achieved
following the intersection of the Patchawarra
Formation in line with the pre-drill interpretation
of the Vali structure.

During drilling, gas shows were observed in the
lower Nappamerri Group, Toolachee, Epsilon
and Patchawarra Formations, and the Tirrawarra
Sandstone. Samples collected from the
Nappamerri Group and Toolachee Formation
during the evaluation program were analysed to
determine gas pay in the sands in these zones.

Oil shows were observed through the late
Cretaceous, Jurassic and Triassic sediments, as
well as the uppermost Permian aged Toolachee

During the flow testing of Vali-1 ST1, the following
activities were undertaken:

• •

Production Logging Tool ("PLT") was run,
which determined that gas was being
contributed by each of the stimulated zones
Shut-ins, which observed the pressure
response of the reservoir, with pressure
readings reaching 2,932 psi at the end of
the recording period and continuing to build
Flow testing, with transient tests undertaken
under various choke sizes of 24/64”, 32/64”
and 40/64” over three equal periods of
six hours
Gas samples taken, with the composition
in line with typical Cooper Basin
Patchawarra wells

Cultural heritage and environmental surveys were
completed in ATP 2021 for the surface facility,
flowline and possible future well locations. The
process was completed in a safe and timely
manner with the Wongkumara People, Erias/
environmental projects and GPA/FYFE and we
appreciate and thank all parties for their efforts.

Vali-2 was drilled to total depth at 3,240 metres,
with no safety incidents, and cased for production.
Wireline logging confirmed a new gas pool in the
Toolachee Formation and confirmed gas in the
Patchawarra Formation and Tirrawarra Sandstone.

A gas gradient was established in Vali-2 through
MDT pressure measurements and a gas sample
was recovered. Analysis of the sample indicates
the Toolachee gas has a higher percentage of
hydrocarbons at 82% (75% methane, 4% ethane,
3% other hydrocarbons) and 18% inert gases,
compared with the Patchawarra gas in Vali-1 ST1,
which has around 76% hydrocarbons and 24%
inert gases. The wireline logging and MDT results
indicate the Toolachee reservoir could flow without
the need for fracture stimulation.

Vintage Energy Ltd Annual Report 2021

consulted with Santos, as operator of the SACB
Joint Venture infrastructure, and identified the
preferred connection point for a Vali Field pipeline
as the Santos operated Beckler Field, which lies
approximately 10 kilometres to the south-west.
Gas would then be transported through the
existing pipeline system for processing at Moomba
once infrastructure access, processing and gas
sales agreements are executed. It is envisaged
that connection from Vali could be via multiple
composite pipelines, the number and size of
which will be defined in the detailed engineering
phase of work.

The capital cost associated with the pipeline
connection is based on concept select work
carried out by GPA. Well costs are based on a
standalone well, however, it is considered that
these costs may be reduced by drilling a campaign
of wells and applying lessons learned from
the three Vali wells. The estimated Vali Field capital
costs, from a gross perspective, include: $8.0
million for engineering and pipeline construction

Review of operations
continued...

Formation. Similar shows were encountered in
both the Vali-1 ST1 and Vali-2 wells and are a major
positive in terms of oil potential, with 14 oil leads
identified in ATP 2021. Despite there being no
mappable Jurassic structural closure around the
three Vali wells, a particularly good oil show was
observed within the McKinlay Member in Vali-3 and
sampling recovered water, likely mud filtrate, with
hydrocarbon odour and blue-white oil fluorescence.
This suggests that oil has migrated through this
area and increases the prospectivity of the Jurassic
structural closures nearby.

The Joint Venture now has three cased wells in
the Vali Field available for future gas production.
While the main objective of the Vali-2 and Vali-3
drilling program was to appraise the extent of the
Patchawarra Formation gas discovery in Vali-1 ST1,
the discovery of a new gas pool in the Toolachee
Formation has provided material upside. The Joint
Venture is now progressing plans for production
from these successful Cooper Basins wells, with
the ACCC granting final approval for the joint
marketing of gas from the Vali Field.

A development concept for the Vali Field has been
completed and estimates a field life of around 20
years, with around nine fracture stimulated vertical
wells to target production from reservoirs in the
Toolachee and Patchawarra Formations and the
Tirrawarra Sandstone. A production profile has also
been developed based on the flow test at Vali-1
ST1 and the decline characteristics of nearby fields.
The current base case initial production concept to
complete the appraisal program for the Vali Field
is for initial raw gas production of approximately
12 MMscfd (gross) from three wells, with each well
estimated to be capable of producing 5 MMscfd
for total production of around 5 Bcf per well (on an
average well outcome basis).

Some of the development concept work has been
carried out by GPA Engineering (“GPA”). GPA

and connection (including separator); $5.0 million
per well to drill, case and complete; $3.5 million per
well to fracture stimulate; $0.5 million per well to
connect to the Vali manifold; and $1.0 million for
geological, geophysical and engineering (“GG&E”)
studies in the first twelve months.

Operating costs are expected to be low, with
well integrity and facility integrity testing part of
variable operating expenditure and adjusted based
on the number of wells. The field itself will be as
automated as possible to reduce costs through
the elimination of the need for permanent
field operators.

Front End Engineering Design ("FEED") for the
Vali-1 ST1 connection to the Beckler Field (which is
connected to the Dullingari facilities and ultimately
Moomba) was awarded to GPA. The main objective
of the now completed FEED phase was to

complete the necessary engineering to identify
long lead items and refine the cost estimate.

First reserves for the Vali Field were certified
by ERCE, which completed a rigorous and
independent review of the Vali gas discovery
and subsequent flow results. The Vali-1 ST1 well
discovered stacked gas pay in the Nappamerri,
Toolachee, Patchawarra and Tirrawarra Formations,
however, the scope of the ERCE reserves
certification was for the Patchawarra Formation
reservoir only. The reserves booking was the first
for Vintage and supports commercialisation of the
Vali gas field with its planned connection into the
Moomba gathering system.

ERCE independently certified reserves for the Vali
gas field (prior to the drilling of Vali-2 and Vali-3)
are as follows:

Reserves (Bcf)

Reserves (PJ)

Reserves (Bcf)

Reserves (PJ)

Net Vali Gas Field Patchawarra Formation

6.1

6.7

15.1

16.6

Gross Vali Gas Field Patchawarra Formation

12.3

13.4

30.3

33.2

39.4

43.3

78.9

86.6

Notes to the table above:

1. ERCE reserves estimates effective 1 December 2020.

2. The Reserves above may change based on data gathered from the drilling of Vali-2 and Vali-3, the analysis of which is not yet complete.

3. Reserves estimates have been made and classified in accordance with the Society of Petroleum Engineers (“SPE”) Petroleum Resources
Management System (“PRMS”).

4. Net Reserves attributable to Vintage represent the fraction of Gross Reserves allocated to Vintage, based on its 50% interest in
ATP 2021.

5. Allowance for Fuel and Flare has been made.

6. Conversion of Bcf to PJ has been estimated based on gas sampled and measured from Vali-1 ST1.

7. ERCE calculated Reserves presented in the tables are the totals for all 20 Patchawarra reservoir intervals.

Vintage Energy Ltd Annual Report 2021Review of operations
continued...

PRL211
Vintage 42.5% and operator, Metgasco Ltd
21.25%, Bridgeport (Cooper Basin) Pty Ltd
21.25%, Impress (Cooper Basin) Pty Ltd 15%

The Odin-1 exploration well reached total depth
at 3,140 metres, with extensive gas shows
encountered in sandstones through the primary
target Toolachee and Patchawarra Formations,
as well as a basal sand in the secondary target
Epsilon Formation.

These shows were confirmed as gas pay via the
wireline evaluation program and gas samples
were recovered from the Toolachee and Epsilon
Formations. The analysis of the gas sample
recovered from the Toolachee Formation highlights
the richer hydrocarbon content of this formation
when compared with the Epsilon and Patchawarra

Formations, with the composition of the
samples being:

• •

Toolachee Formation gas sample: 83%
hydrocarbons (79% methane, 3% ethane and
1% other) and 17% inerts
Epsilon Formation gas sample: 77%
hydrocarbons (75% methane, 2% ethane) and
23% inerts (similar to Patchawarra Formation
samples from previous wells)

The well has been cased for future production,
with a likely option being the connection of the
Odin Field into the Vali production network.
Odin-1 addressed a structural Patchawarra
Formation closure, up dip of Strathmount-1,
a well drilled in 1987 and plugged and abandoned
after discovering what was then considered a
non-commercial hydrocarbon accumulation.

Cooper Basin permits PRL 211 and ATP 2021 including well locations Odin-1, Vali-1 ST1, Vali-2 and Vali-3

Accordingly, a net 2C Contingent Resource of 16.0
Bcf has been certified by ERCE.

The Contingent Resources are sub-classified
under the Project Maturity Sub-class as described
in the SPE Petroleum Resources Management
System as “Development Unclarified” by ERCE
and Vintage. The key contingencies are a final
investment decision on development, committing
to a Gas Sales Agreement and any other necessary
commercial arrangements, plus obtaining the
usual regulatory approvals for production.

Vintage post-drill mapping estimates the
Toolachee Formation at Odin to have ~16 metres
of structural relief over nearly 6.1 km2, and ~23
metres of structural relief over nearly 5.1 km2
in the Patchawarra Formation.

After year end, ERCE independently certified 36.4
Bcf of gross 2C Contingent Resources in the
Toolachee, Epsilon, Patchawarra and Tirrawarra
Formations of the Odin gas field located in both
PRL 211 and ATP 2021. While all these formations
contributed to the certified gas volumes, the
majority of the resource is based in the Toolachee
and Patchawarra Formations.

The working interest of the Contingent Resources
represent Vintage’s share of the Gross Contingent
Resources based on its working interest in PRL
211, which is 42.5%, and ATP 2021, which is 50%.

6.03km

0.78km

1.3km

Odin-1

Vali-3

Vali-1
ST1

Vali-2

Key to well results

Gas recovered

Gas show

Oil show

Cadna-Owie Formation

Namur / Westbourne /
Adori / Birkhead / Hutton

Nappamerri

Toolachee

Daralingie / Roseneath /
Epsilon / Murteree

Patchawarra

Tirrawarra

Metasediments

TD
3108 m
(RT)

S
U
O
E
C
A
T
E
R
C
Y
L
R
A
E

JURASSIC

C
I
S
S
A
R
T

N
A
M
R
E
P

1000 m

2000 m

3000 m

TD
3186 m
(RT)

TD
3217 m
(RT)

TD
3240 m
(RT)

Schematic cross section through Odin and Vali

Vintage Energy Ltd Annual Report 2021Produced by flatEARTHmapping.com.au
Review of operations
continued...

Otway Basin, South Australia/Victoria

PRL 249 (exPEL 155)
Vintage 50%, Otway Energy Pty Ltd 50%
and operator

Nangwarry-1 was perforated across the targeted
zones in the Top Pretty Hill Formation, with flow
testing delivering 10.5-10.8 MMscfd through a
48/64” choke at a flowing wellhead pressure of
1,415 psi over a 36-hour period. This flow was
measured through a 3” orifice plate and choked
back in order to analyse the well over this extended
flow period with stable conditions. The well is
very productive and, over shorter periods and on
various chokes, flowed at rates well in excess of
those measured during the extended flow test.

Excellent flows from the perforations within the
Top Pretty Hill Formation demonstrated the column
height of CO2 accumulation to be at least 120
metres, an increase from the 90 metres previously
advised. During the latter part of the flow testing
period a PLT was run.

The logging passes across the perforations were
run at 30, 60, 90 feet/min while flowing at a rate
restricted by a 32/64” choke at approximately
6 MMscfd, then at a restricted rate on a 48/64”
choke at approximately 11 MMscfd and finally
while shut-in.

Once the PLT was pulled from the hole, downhole
gauges were programmed and run into the hole

Total

PRL 211

ATP 2021

Total

Gross Odin Gas Field Contingent Resources (Bcf)

18.5

36.4

Net Odin Gas Field Contingent Resources (Bcf)

4.4

3.7

8.1

8.7

7.3

16.0

71.1

17.1

14.3

31.4

Notes to the table above:

1. Gross Contingent Resources represent 100% total of estimated recoverable volumes within the Odin gas field.

2. Working Interest Contingent Resources represent Vintage’s share of the Gross Contingent Resources based on its working interest in PRL
211, which is 42.5%, and ATP 2021, which is 50%.

3. These are unrisked Contingent Resources that have not been risked for Chance of Development and are sub-classified as
Development Unclarified.

4. Contingent Resources volumes shown have had shrinkage applied to account for inerts removal and include hydrocarbon gas only.

5. No allowance for fuel and flare volumes has been made.

6. Resource estimates have been made and classified in accordance with the Petroleum Resources Management System (“PRMS”).

7. Probabilistic methods have been used for individual sands and totals for each reservoir interval have been summed arithmetically.

8. Contingent Resources certified by ERCE are as at 14 September 2021.

and set at 2,919 metres to record pressure data
for the extended flow and shut-in periods.

The production test and collection of volumetric
data is a key milestone toward first production of
food grade CO2.

Following analysis of the main flow test data,
and pressure build-up data after an extended
shut-in of the flow, Vintage interpreted no
significant pressure drop in the reservoir as a
result of the flow. As the flow test had negligible
impact on the reservoir pressure, this indicates a
sizeable volume of CO2 is present in the field.

Subsequent to period end, a revision of the
Nangwarry Field recoverable estimates was
conducted by ERCE following the successful
production test of the Nangwarry-1 well. The
revised estimates are as follows:

Nangwarry Field

CO2

Hydrocarbon

Gross On-block Recoverable
Sales Gas (Bcf)

Gross Gas Contingent
Resources (Bcf)

Pretty Hill Sandstone

Low

9.0

Best

25.9

High

64.4

0.5

1.6

4.1

Pretty Hill Sandstone

4.5

12.9

32.2

0.3

0.8

2.0

Net On-block Recoverable
Sales Gas (Bcf)

Net Gas Contingent
Resources (Bcf)

Notes to the table above:

1. ERCE recoverable and resource estimates effective 7 July 2021.

2. Gross volumes represent a 100% total of estimated recoverable volumes within PRL 249.

3. Working interest volumes for Otway Energy Pty Ltd and Vintage’s share of the Gross recoverable volumes can be calculated by applying their
working interest in PRL 249, which is 50% each.

4. Sales gas stream for Nangwarry is CO2 gas.

5. These are unrisked Contingent Resources that have not been risked for Chance of Development and are sub-classified as
Development Unclarified.

6. Hydrocarbon gas also includes minor volumes of nitrogen.

7. Contingent Resources will be Consumed in Operations – used as fuel for CO2 gas plant.

Vintage Energy Ltd Annual Report 2021Review of operations
continued...

The Joint Venture is now investigating appropriate
commercialisation options for the production
of food grade CO2. This would include the
construction of a plant and load-out infrastructure.
The co-produced methane (approximately 6%)
can be used to power the production plant.
Discussions on commercialisation pathways have
been initiated with several parties.

As part of this process, Vintage was appointed
by the Joint Venture as marketing agent to
commercialise the Nangwarry Field. The recent
appointment of an in-house Commercial Manager,
along with BurnVoir Corporate Finance Limited
as a corporate advisor, provide the appropriate
resourcing to investigate and negotiate a
beneficial outcome on behalf of the Joint Venture
for commercialisation of the Nangwarry Field.

The Joint Venture signed a non-binding
Memorandum of Understanding (“MOU”) with
Supagas Pty Ltd (“Supagas”), an Australian based

distributor of gases for domestic, industrial,
medical and other applications.

Under the MOU, Supagas is funding work
associated with the preliminary design and costing
of facilities for processing CO2, which will allow for
the production and delivery of food grade CO2. In
return, the Joint Venture will provide Supagas the
opportunity to submit a formal proposal to develop
and/or purchase gas from the Nangwarry Field.
The Nangwarry Field has the potential to provide a
stable and reliable source of food grade CO2, which
is currently in high demand since the depletion of
onshore Otway Basin well Caroline-1 in 2017.

The Department of Energy and Mining approved
an application for a retention licence (PRL 249)
over the Nangwarry CO2 discovery, prior to
expiry of PEL 155 on 5 May 2021. As a result,
the Joint Venture retains a significant amount
of land around the Nangwarry Field while it
pursues options for commercial development.

Otway Basin permit PRL 249 including well location Nangwarry-1

Perth Basin, Western Australia

Bonaparte Basin, Northern Territory

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

EP 126
Vintage 100%

Discussion with the Northern Territory Government
continues in relation to the declaration of
approximately 50% of the permit, including the
Cullen-1 well site, as a ‘Reserved Area’. No further
on-site work, other than required maintenance,
will be undertaken until the issue is resolved.

Firetail Energy Services Pty Ltd, an oil and gas
service provider and potential farm-in partner,
went into administration. As a result of this, the
farm-in agreement with Vintage to earn a 10%
equity in EP126 will be terminated. Interest is being
shown in the permit and Vintage will pursue those
interests in a bid to attract a joint venture partner
to the project.

A further survey was recommended by the
environmental authorities and completed in
September 2020 with final environmental
approvals now expected to be received in late
2021. The Joint Venture anticipates access road
and pad construction to commence immediately
after approvals have been received.

After originally planning to drill Cervantes with
the Refine Rig 2, the Joint Venture has now signed
a non-binding Letter of Intent (“LOI”) with Strike
Energy Ltd, to negotiate a rig slot on the Ensign
970 rig.

The Cervantes prospect sits within the L14 licence
granted over the Jingemia oilfield and surrounds
and is a high-side fault trap of multiple Permian
sandstone reservoir targets (prolific producers in
the Perth Basin). The Chance of Success ("COS') is
28% and it has a high chance of development due
to its close proximity to the Jingemia oil field and
processing facility. The Cervantes prospect has
a Gross Prospective Resource of: 1U low estimate
of 6.0 MMbbl (1.8 MMbbl net), 2U best estimate
of 15.3 MMbbl (4.6 MMbbl net), 3U high estimate
of 41.9 MMbbl (12.6 MMbbl net) (refer ASX release
dated 15 November 2019).

Galilee Basin, Queensland

ATPs 743, 744, 1015 (“Deeps”)
Vintage 30%, Comet Ridge Ltd (“Comet”) 70%
and operator

The Deeps exploration/evaluation work is currently
suspended by the operator.

Vintage Energy Ltd Annual Report 2021Reserves and
resources
statement

During the period to June 30, 2021 and
following the successful fracture stimulation
and flow test of Vali-1 ST1, Vintage made its
inaugural booking of reserves.

Contingent resources

Vintage had previously held a contingent resource
on the Vali gas field and following the successful
flow test and advancing plans to connect the
field for production, the status of the Vali field
resource was upgraded to reserves. This resulted

in a 17 PJ booking of 2P reserves net to Vintage.
Consequently, the total 2C contingent resource
net to Vintage was reduced from 67 PJ to 46 PJ.

Governance statement

The reserves and the contingent resources
contained in this Reserves Statement have been
independently assessed. As new data from the
Vali Gas Field is assessed during FY22, this will
be independently reviewed and the reserves
independently reassessed.

1P Reserves (PJ) Net to Vintage

Area

FY20

Acquisitions
& Divestments

Contingent
Resources to
Reserves

Revisions

FY21

Gas

Total

Developed Undeveloped

Cooper
Basin

Total

2P Reserves (PJ) Net to Vintage

Area

FY20

Acquisitions
& Divestments

Contingent
Resources to
Reserves

Revisions

FY21

Gas

Total

Developed Undeveloped

Cooper
Basin

Total

2C Contingent Resource (PJ) Net to Vintage

Area

FY20

Acquisitions
& Divestments

Contingent Resources
to Reserves

Revisions

FY21

Gas

Galilee
Basin

Cooper
Basin

Total

-17

-4

Notes to the Cooper Basin 1P and 2P reserve assessment:

1. Reserves estimates reported here are ERCE estimates, effective 1 December 2020.

2. Vintage notes that subsequent to the reporting period, a two well appraisal program was completed and an independent assessment of

the reserves is currently being undertaken.

3. Reserves estimates have been made and classified in accordance with the Society of Petroleum Engineers (“SPE”) Petroleum Resources
Management System (“PRMS”).

4. Individual sand reserves have been estimated probabilistically and summed arithmetically.

5. Net Reserves attributable to Vintage represent the fraction of Gross Reserves allocated to Vintage, based on its 50% interest in ATP 2021.

6. Allowance for Fuel and Flare has been made.

7. Conversion of Bscf to PJ has been estimated based on gas sampled and measured from Vali-1 ST1.

8. ERCE Reserves presented in the tables are the totals for all 20 Patchawarra reservoir intervals in Vali-1ST1.

9. These reserves were first reported by Vintage in an ASX release dated December 14, 2020.

Notes on Galilee Basin Contingent Resource assessment:

1. Estimates are in accordance with the Petroleum Resources Management System (SPE, 2007) and Guidelines for Application of the PRMS

(SPE, 2011).

2. No Reserves were estimated.

3. Probabilistic methods were used.

4. Sales gas recovery and shrinkage have been applied to the Contingent Resource estimation. The losses include those from the field use,
as well as fuel and flare gas.

Vintage Energy Ltd Annual Report 2021

Reserves and resources
statement continued...

5. 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 announcement of 5 August 2015.

6. The chance of development is classified as high, as several commercialisation possibilities exist for future gas supply export.

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
Reserves 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 a member of the Society of Petroleum
Evaluation Engineers.

Reserves evaluator

SRK Consulting (Australasia) Pty Ltd
– Carmichael structure (Galilee Basin)
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

Climate
change

Vintage has a policy on climate change which
recognises that the Company has a role to
play in reducing carbon emissions.

The Task Force on Climate-Related Financial
Disclosures (TCFD) recommends climate-related
financial disclosure under the following categories:

We recognise that the world needs to access
reliable, affordable and sustainable energy
delivered in cleaner ways.

As an oil and gas exploration company, Vintage
understands that to be successful it must identify
and develop a long-term portfolio of assets that
contribute to a low-carbon future. In development
it must ensure the use of energy-efficient and
low emission technologies to ensure a low
carbon footprint.

Climate change governance

The Vintage Board oversees risk management
for the business, including climate change policy
and climate change risks and opportunities.
Climate-related issues are considered regularly
by the Board and in particular the effect
climate change may have on the Company’s
business strategy.

Climate change risk is specifically addressed
by the Company’s risk management committee,
which reports to the audit and risk committee.

Vintage Energy Ltd Annual Report 2021

The audit and risk committee’s purpose with
respect to climate change risks and opportunities
is to:

• •
• •

Have oversight of risk management
Approve and recommend to the Board for
adoption policies and procedures on risk
oversight and identifying, assessing,

monitoring, and managing risks

• •

and opportunities
Assessing the adequacy of risk
control systems

Management, through the risk management
committee, conducts regular risk assessments
including climate change risk and updates the
risk register with identified controls and progress
against risk mitigation actions. Reports on
progress are provided regularly to the audit
and risk committee and the Board.

Strategy

Climate-related risks and opportunities to the
business strategy are:

Effect of climate change on market sentiment,

• •
which may result in capital being harder to

obtain and therefore Vintage may fail to meet
its objectives.
Vintage’s major assets are its gas exploration
permits in the Cooper Basin. Natural gas is
a transitory energy source to a low
carbon future and may provide significant
opportunities to bring these assets
into production.
Physical risks that may eventuate from climate
change on the Vintage business could include
increased number of extreme heat days to
which field workers are exposed and extreme
weather conditions such as flooding
events could impact business continuity
of field operations.

• •

Technology and energy sourcing
opportunities that provide options to
transition products, services and energy
needs to lower emission options and the
costs associated with this transition.
The Company routinely evaluates alternative
and/or renewable energy opportunities and
has secured a Gas Storage Exploration
Licence (GSEL) in the south-east of South
Australia over the depleted Caroline CO2

field and surrounding areas.

Risk management

Vintage has implemented an enterprise
risk management framework based on
ISO 31000:2009.

Climate-related risks and opportunities are
included in Vintage’s corporate risk register which
is reviewed regularly by management and by the
audit and risk committee.

As required by the framework, the risk register
includes events, causes, consequences and
effects of identified risks and opportunities.
A risk weighting is then applied based on the
chance the event may happen and the potential
effect on the business. Mitigation actions are
identified, and appropriate follow-up actions
are taken and monitored.

Metrics and targets

Vintage is in the process of defining its future
targets and metrics as the business grows and
operations become more complex. It is envisaged
that these will be disclosed over the next financial
year and reviewed regularly.

Directors’
report

Vintage Energy Ltd Annual Report 2021

Directors’ report
Directors’ report

(continued)

Ian Howarth | Non-Executive Director
The Directors of Vintage Energy Limited (“Vintage” or
“the Company”) present their report together with the
Ian Howarth spent several years as a mining and oil
financial statements of the Company for the year ended
analyst with Melbourne-based May and Mellor. He had
a career in journalism as a senior resources writer at
30 June 2021 and the independent audit report
The Australian and was the Resources Editor of the
thereon.
Australian Financial Review for 18 years. He created
Collins Street Media, one of Australia’s
leading
Director details
included
resources sector consultancies. Clients
APPEA and several listed companies including Shell
The following persons were Directors of Vintage during
Australia. His expertise lies in marketing and assisting
or since the end of the financial year:
in capital raising. Ian has a certificate in financial
markets from Securities Institute of Australia.

13,633,399

Other directorships – Nil.
Reg Nelson | Chairman
Committee memberships - Audit and risk, chair of the
Reg Nelson has a long and distinguished career in the
nomination committee and remuneration committee.
Australian petroleum industry and is widely respected
Interest in shares and options
within commercial and government circles, for his
successful and innovative leadership. As Managing
Ordinary shares
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
Company Secretary
Exploration Association (“APPEA”) for eight years and
The following person was Company Secretary of
was APPEA Chairman from 2004 to 2006. He was a
Vintage during and since the end of the financial year:
Director of petroleum exploration company FAR
Limited and has been a Director of many Australian
Securities Exchange (“ASX”) listed companies. He was
Simon Gray | Company Secretary / Chief Financial
awarded the Reg Sprigg Medal by APPEA in 2009 in
Officer
recognition of his industry contribution.

Simon Gray has over 35 years' experience as a
Other directorships – Nil
chartered accountant and 20 years as a Partner with
Previous directorships – FAR Limited (from May 2015
Grant Thornton, a national accounting firm. In his last
to June 2021)
five years at the firm, he was the national head of
energy and resources. Simon retired from active
Committee memberships - Audit and risk,
practice in July 2015. His key expertise lies in audit
remuneration and nomination.
and risk, valuations, due diligence and ASX Listings.
Interest in shares and options
His qualifications include B.Ec. (Com). He is a Director
and Chief Financial Officer of minerals exploration
Ordinary shares
company Havilah Resources Limited and Company
Secretary of several other ASX-listed companies.

15,744,696

Principal activities

The principal activities of the Company during the year
Neil Gibbins | Managing Director
were gas and oil exploration and appraisal.

Neil Gibbins has over 35 years of technical and
There has been no significant change in these activities
leadership experience in the petroleum industry in a
during the financial year.
wide variety of regions in Australia and internationally
and has been involved in many successful exploration,
Results for the year
development and corporate acquisition projects. Neil
was employed at both Esso Australia and Santos
The Company incurred an operating loss of $2,368,480
Limited,
in
initially as a geophysicist and
for the Financial Year ended 30 June 2021 ($2,205,848
supervisory roles. He moved to Beach in 1997, initially
2020). Efforts over the financial year focused on
as Chief Geophysicist, and then as Exploration
building a robust portfolio of assets and the execution
Manager in 2005, and Chief Operating Officer in 2012.
of work programs associated with earning equity
Neil was acting CEO in 2015 and led Beach during its
interests in various strategic joint ventures located in
merger with DrillSearch Energy Limited in 2016. He is
prospective petroleum basins onshore in Australia.
a member of PESA, SEG, SPE and ASEG.
The details of these assets are described in the
Other directorships – Nil.
operations report in this Annual Report.

later

Interest in shares and options
Dividends
Ordinary shares
No Dividends were paid or proposed during the year.

14,466,949

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.

Other directorships – Nil.

Committee memberships – Nomination committee and
remuneration committee and chair of audit and risk.

Interest in shares and options

Ordinary shares

6,177,998

Directors’ report

(continued)

Ian Howarth | Non-Executive Director

Principal activities

Ian Howarth spent several years as a mining and oil
analyst with Melbourne-based May and Mellor. He had
a career in journalism as a senior resources writer at
The Australian and was the Resources Editor of the
Australian Financial Review for 18 years. He created
Collins Street Media, one of Australia’s
leading
resources sector consultancies. Clients
included
APPEA and several listed companies including Shell
Australia. His expertise lies in marketing and assisting
in capital raising. Ian has a certificate in financial
markets from Securities Institute of Australia.

Other directorships – Nil.

Committee memberships - Audit and risk, chair of the
nomination committee and remuneration committee.

Interest in shares and options

The principal activities of the Company during the year
were gas and oil exploration and appraisal.

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

Results for the year

The Company incurred an operating loss of $2,368,480
for the Financial Year ended 30 June 2021 ($2,205,848
2020). Efforts over the financial year focused on
building a robust portfolio of assets and the execution
of work programs associated with earning equity
interests in various strategic joint ventures located in
prospective petroleum basins onshore in Australia.

The details of these assets are described in the
operations report in this Annual Report.

Ordinary shares

13,633,399

Dividends

No Dividends were paid or proposed during the year.

Company Secretary

The following person was Company Secretary of
Vintage during and since the end of the financial year:

Simon Gray | Company Secretary / Chief Financial
Officer

Simon Gray has over 35 years' experience as a
chartered accountant and 20 years as a Partner with
Grant Thornton, a national accounting firm. In his last
five years at the firm, he was the national head of
energy and resources. Simon retired from active
practice in July 2015. His key expertise lies in audit
and risk, valuations, due diligence and ASX Listings.
His qualifications include B.Ec. (Com). He is a Director
and Chief Financial Officer of minerals exploration
company Havilah Resources Limited and Company
Secretary of several other ASX-listed companies.

Vintage Energy Ltd Annual Report 2021

Directors’ report

(continued)

Significant changes in the state of affairs

Meetings

Committee

Board

Audit and Risk

Remuneration

Committee

Nomination
Committee

Board Member
A natural gas discovery was made during the year, with the Odin-1 exploration well in PRL 211 in the Cooper Basin.
Reg Nelson
The Odin discovery has the potential to be on production once appropriate test work and infrastructure connection is
approved and completed. Along with the success at Odin-1, the Vali-2 and Vali-3 appraisal wells in ATP 2021 were
Ian Howarth
drilled and cased for future production.
Neil Gibbins

Nick Smart
The Company raised $15,200,000 ($3,100,000 from an Institutional Placement and $12,100,000 from an Entitlement
Offer), with the funds primarily used to test the onshore Otway Basin Nangwarry CO2 discovery, fracture stimulate and
Notes to the table above:
flow test the Vali-1 ST1 gas discovery, drill the Vali-2 appraisal well, drill the Vali-3 appraisal well and drill the Odin-1
A is the number of meetings held
exploration well, all of which are in the Cooper Basin.
B is the number of meetings attended

The Australian Competition and Consumer Commission granted authorisation for Vintage, Metgasco Ltd and Bridgeport
Share options granted to management and Directors during the year
(Cooper Basin) Pty Ltd, to enter into joint gas marketing arrangements for gas produced from the Vali Field for five
years and, within this period, to enter into gas supply agreements with customers on common terms and conditions
No options were granted to Management or Directors during the financial year.
(including price) for terms of up to 15 years.
Performance rights granted to management and Directors during the year
Subsequent events
No performance rights were granted to management or Directors during the financial year.
The Vali-3 well in the Cooper Basin was cased for future production, with interpreted net pay the largest of all the Vali
During the year, 881,500 performance rights relating to management and 937,500 performance rights relating to the
wells to date. It is estimated that Vali-3 has 178 metres of net pay in the Patchawarra Formation and Tirrawarra
Managing Director were converted into ordinary shares on satisfaction of a performance condition.
Sandstone. Work is underway to estimate further gas pay in the Epsilon and Toolachee formations. With the casing of
Vali-3, Vintage now has four Cooper Basin wells (along with Vali-1 ST1, Vali-2 and Odin-1) cased for production.
After the end of the financial year, 19,535,500 performance rights were issued as short- and long-term incentives, as
described above.
An independently certified contingent resources booking, by ERC Equipoise Pte Ltd, was made for the PRL 211 and
ATP 2021 Odin Field in the Cooper Basin. The Odin Field Gross 2C Contingent Resources of 36.4 Bcf (16.0 Bcf net
Unissued shares under option
working interest) are materially larger than the pre-drill Odin 2U Prospective Resources estimate.

There are no unissued ordinary shares of Vintage under option at the date of this report.
ERCE Equipoise Pte Ltd revised upward its gross recoverable CO2 best case for the Nangwarry Field in the Otway
Basin. The independent resource estimation for the gross recoverable CO2 best case is now 25.9 Bcf (12.9 Bcf net).
6,500,000 options on issue from prior periods expired on 17 September 2021:

Performance rights totaling 19,535,500 were issued to Management on 2 August 2021, on the following terms:

Exercise price

Date options granted

Number under option
• Short term incentives – 7,814,900 rights – continued employment with Vintage and first gas to market by 30 June

Holder

of shares ($)

2022.

13 September 2018

4,000,000
• Long term incentives 1 – 5,860,300 rights – continued employment with Vintage at 30 June 2024 and CO2
1,500,000

production commenced or Nangwarry project monetised prior to 30 June 2024.

13 September 2018

Directors

Brokers

0.35

0.30

19 August 2019

1,000,000
• Long term incentives 2 – 5,860,300 rights – require relevant employees to remain employed by Vintage at

Company Secretary

0.35

Total under option

30 June 2024 and the Company reach a market capitalisation of $100million reached prior to 30 June 2024.

6,500,000
On 17 September 2021, 5,000,000 options and 7,925,646 Founders’ Rights held by Directors and other key
management personnel expired.
Options did not entitle the holder to participate in any share issue of the Company.

Likely developments, business strategies and prospects
Shares issued during or since the end of the year as a result of exercise of
options
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.
No options have been exercised during or since the end of the financial year.

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:

Directors’ report

(continued)

Board Member

Reg Nelson

Ian Howarth

Neil Gibbins

Nick Smart

Board

Meetings

Audit and Risk

Remuneration

Committee

Nomination
Committee

Notes to the table above:
A is the number of meetings held

B is the number of meetings attended

Share options granted to management and Directors during the year

No options were granted to Management or Directors during the financial year.

Performance rights granted to management and Directors during the year

No performance rights were granted to management or Directors during the financial year.

During the year, 881,500 performance rights relating to management and 937,500 performance rights relating to the
Managing Director were converted into ordinary shares on satisfaction of a performance condition.

After the end of the financial year, 19,535,500 performance rights were issued as short- and long-term incentives, as
described above.

Unissued shares under option

There are no unissued ordinary shares of Vintage under option at the date of this report.

6,500,000 options on issue from prior periods expired on 17 September 2021:

Date options granted

Holder

13 September 2018

Directors

Brokers

19 August 2019

Company Secretary

Total under option

Exercise price

of shares ($)

Number under option

0.35

0.30

0.35

4,000,000

1,500,000

1,000,000

6,500,000

Options did not entitle the holder to participate in any share issue of the Company.

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.

Vintage Energy Ltd Annual Report 2021

Directors’ report

(continued)

Non-executive Director remuneration is by way of fees and statutory superannuation contributions. Non-executive
Rights on issue
Directors do not participate in schemes designed for remuneration of executives and are not provided with retirement
benefits other than salary sacrifice and statutory superannuation.
Rights to ordinary shares issued at the date of this report are:

Executive remuneration policies

Date rights granted

Exercise price of shares
($)

Number

The remuneration of the Managing Director is determined by the remuneration committee and approved by the Board.
The terms and conditions of his employment are subject to review from time to time.

Managing Director

Nil

Management (1)

The remuneration of other executive officers and employees is determined by the Managing Director subject to the
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.

Management (1)

2 August 2021

19,535,500

Nil

725,000

1 June 2019

20,260,500

Total

The remuneration structure and packages offered to executives are summarised below:
Notes to the table above:
(1) Details of rights issued to Management are outlined above and at Note 15 in the Notes to the Financial Statements.
Fixed remuneration
• Short-term incentive - The Company does not presently emphasise payment for results through the provision of
cash bonus schemes or other incentive payments based on key performance indicators. However, the Board
Environmental legislation
may approve the payment of cash bonuses from time to time to reward individual executive performance in
The Company’s oil and gas operations are subject to environmental regulation under the legislation of the respective
achieving key objectives as considered appropriate by the Board.
•
State, Territory and Federal Government jurisdictions in which it operates. Approvals, licenses, hearings and other
Long-term incentive – equity grants, which may be granted annually at the discretion of the Board. From time to
regulatory requirements are performed by the operators of each permit or lease on behalf of joint operations in which
time, the Company may grant retention options or rights as considered appropriate as a long-term incentive for
the Company participates. The Company is potentially liable for any environmental damage from its activities, the extent
key management personnel.
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
The intention of this remuneration is to facilitate the retention of key management personnel in order that the goals of
environmental risks. Compliance by operators with environmental regulations is governed by the terms of respective
the business and shareholders can be met. Under the terms of the issue of the retention rights, the rights will vest over
joint operating agreements and is otherwise conducted using oil industry best practices. Management actively monitors
a period, dependent upon company and individual performance.
compliance with regulations and as at the date of this report is not aware of any material breaches in respect of these
Remuneration consultants
regulations.

The Company did not use any remuneration consultants during the year.
Remuneration report (audited)
At the Company’s Annual General Meeting, held 17 November 2020, 95.1% of eligible votes were cast in favour of the
remuneration report in the 2020 Annual Report of the Company being adopted.
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
Remuneration of Directors and key management personnel
and business objectives by providing a fixed remuneration component and offering other incentives based on
This report details the nature and amount of remuneration for each key management personnel of the company. The
performance in achieving key objectives as approved by the Board. The Board of Vintage believes the remuneration
key management personnel of the Company are the Board of Directors and Company Secretary.
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.
Directors and key management personnel
The Company’s policy for determining the nature and amounts of emoluments of Board members and other key
The names and positions held by Directors and key management personnel of the Company during the whole of the
management personnel of the Company is as follows:
financial year are:

Name

Remuneration and nomination

Date appointed

Position

Neil Gibbins

Reg Nelson

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.

Non-Executive Director

Managing Director

9 November 2015

10 February 2017

Nick Smart

Chairman

•

Ian Howarth

9 November 2015

•

Non-Executive Director

Simon Gray

9 November 2015

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-
executive Directors as they determine. Directors are also entitled to be paid reasonable travelling, accommodation and
other expenses incurred in performing their duties as Directors. The fees paid to non-executive Directors are not
incentive or performance based but are fixed amounts that are determined by reference to the nature of the role,
responsibility and time commitment required for the performance of the role, including membership of board
committees.

Company Secretary and Chief Financial Officer

•

Directors’ report

(continued)

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
benefits other than salary sacrifice and statutory superannuation.

Executive remuneration policies

The remuneration of the Managing Director is determined by the remuneration committee and approved by the Board.
The terms and conditions of his employment are subject to review from time to time.

The remuneration structure and packages offered to executives are summarised below:

Fixed remuneration
• Short-term incentive - The Company does not presently emphasise payment for results through the provision of
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 to reward individual executive performance in
achieving key objectives as considered appropriate by the Board.
Long-term incentive – equity grants, which may be granted annually at the discretion of the Board. From time to
time, the Company may grant retention options or rights as considered appropriate as a long-term incentive for
key management personnel.

•

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
a period, dependent upon company and individual performance.

Remuneration consultants

The Company did not use any remuneration consultants during the year.

At the Company’s Annual General Meeting, held 17 November 2020, 95.1% of eligible votes were cast in favour of the
remuneration report in the 2020 Annual Report of the Company being adopted.

Remuneration of Directors and key management personnel

This report details the nature and amount of remuneration for each key management personnel of the company. The
key management personnel of the Company are the Board of Directors and Company Secretary.

Directors and key management personnel

The names and positions held by Directors and key management personnel of the Company during the whole of the
financial year are:

Name

Reg Nelson

Neil Gibbins

Nick Smart

Ian Howarth

Simon Gray

Date appointed

10 February 2017

9 November 2015

•

Position

Chairman

Managing Director

Non-Executive Director

Company Secretary and Chief Financial Officer

Vintage Energy Ltd Annual Report 2021

Directors’ report

(continued)

Share based remuneration
Remuneration summary Directors and other key management personnel
Upon listing on the ASX, the Company issued options to Directors which were exercisable on a one-for-one basis at
$0.35 per share, with an exercise period of up to 17 September 2021. The Company had also issued 1,000,000 options
to Mr. Simon Gray in accordance with his employment agreement which were exercisable on a one-for-one basis at
$0.35 per share, with an exercise period of up to 17 September 2021. These options expired on 17 September 2021.
-

Performance
related
percentage

Share based
percentage
of total

Share based
remuneration

75,751 0%

Termination
benefits

Super-
annuation

Salary
& fees (3)

Reg Nelson

69,179

6,572

Total

2021

Options carry no voting or dividend rights.
105,389 (1)

Neil Gibbins

319,549

27,602

452,540 23%

23%

Ian Howarth

-
Performance rights issued in prior financial years under the employee incentive plan and to the Managing Director have
been issued under the following general performance conditions:

46,120

4,381

50,501 0%

Nick Smart

46,120

4,381

Simon Gray

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.

101,524 0%

93,464

8,060

574,432

105,389

50,996

730,817

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) and still being engaged
as an executive at the end of the three years.
Salary
& fees (3)

Share based
percentage
of total
Performance rights convert to ordinary shares on the completion of the performance conditions.

Performance
related
percentage

Share based
remuneration

Termination
benefits

Super-
annuation

Total

2020

•
Reg Nelson

-
Performance rights carry no dividends or voting rights and when exercisable each right is converted into one ordinary
32%
share. They are excisable at nil value.

158,082 (1)

491,981

72,127

Neil Gibbins

306,571

65,870

27,328

6,257

32%

•

•
Ian Howarth

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

46,534

42,497

4,037

•
Nick Smart

42,497

46,534

4,037

•
Ian Northcott
Employee
•
Simon Gray

Neil Gibbins
•

42,010

20,000 (2)

91,665

Number of
rights granted

Class

178,082

591,110

937,500

3,991

7,980

46,001
Value at
Grant date
119,645

Grant Date

Number
converted

17%

27 November 2018

822,822

196,875

53,630

937,500

Number
lapsed

Neil Gibbins

937,500

27 November 2018

158,812

937,500

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
The Class B performance rights issued to Mr. Neil Gibbins pursuant to the resolution at the 27 November 2018 Annual
performance rights have been measured using a generally accepted valuation model. The fair values are then amortised over the
General Meeting met performance conditions on 1 March 2021 and were subsequently exercised and converted to
entire vesting period of the equity instruments. Total remuneration shown in ‘total’ therefore includes a portion of the fair value of
ordinary shares.
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.

The Class C performance rights issued to Mr. Neil Gibbins pursuant to the resolution at the 27 November 2018 Annual
(2) Relates to options issued throughout the year, as outlined in the Share Based Payment section below.
(3) Executive salaries include annual leave entitlements.
General Meeting lapsed on 1 March 2021, as the performance conditions were not met.

Service agreements
Directors and other key management personnel equity remuneration, holdings and transactions
Remuneration and other terms of employment for Executive Directors and other key management personnel are
The number of shares in the Company held during the financial year by each Director and other key management
formalised in a Service agreement.
personnel of the Company, including their personal related parties, are set out below:
Details of agreements for Executive Directors and other key management personnel is set out below:

Name

Mr. Neil Gibbins, Managing Director

Balance
1 July 2020

Converted rights

Options
Exercised

Net Change
Other

Balance

Reg Nelson

-
Base Salary $401,625 (full time equivalent) inclusive of superannuation. The position is a 0.8 full time equivalent.

9,411,363

15,744,696

6,333,333 (i)

Neil Gibbins

8,838,863

937,500 (ii)

4,638,889 (i)

14,415,252

Ian Howarth

If 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 several circumstances including serious misconduct or failure to carry out
the employee’s duties under the Agreement.

4,972,222 (i)

100,031 (i)

13,633,399

Nick Smart

6,177,998

6,077,967

8,661,177

5,911,177

Ian Northcott

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

Simon Gray

83,333 (i)

6,077,905

5,911,177

5,994,572

Notes to the table above:
Mr. Simon Gray, Company Secretary

Base Salary $234,549 (full time equivalent) inclusive of superannuation. The position is a 0.4 full time equivalent.

Shares were acquired during the year as part of the capital raise announced on 17 September 2020.
Shares were issued on the conversion of Class B performance rights, upon satisfaction of performance conditions.

(i)
(ii)

Directors’ report

(continued)

Share based remuneration

Upon listing on the ASX, the Company issued options to Directors which were exercisable on a one-for-one basis at
$0.35 per share, with an exercise period of up to 17 September 2021. The Company had also issued 1,000,000 options
to Mr. Simon Gray in accordance with his employment agreement which were exercisable on a one-for-one basis at
$0.35 per share, with an exercise period of up to 17 September 2021. These options expired on 17 September 2021.

Options carry no voting or dividend rights.

Performance rights issued in prior financial years under the employee incentive plan and to the Managing Director have
been issued under the following general performance conditions:

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.

Performance rights convert to ordinary shares on the completion of the performance conditions.

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 key
management personnel are set out below.

Employee

Class

Number of
rights granted

Grant Date

Value at
Grant date

Number
converted

Number
lapsed

Neil Gibbins

937,500

27 November 2018

196,875

937,500

27 November 2018

158,812

937,500

The Class B performance rights issued to Mr. Neil Gibbins pursuant to the resolution at the 27 November 2018 Annual
General Meeting met performance conditions on 1 March 2021 and were subsequently exercised and converted to
ordinary shares.

The Class C performance rights issued to Mr. Neil Gibbins pursuant to the resolution at the 27 November 2018 Annual
General Meeting lapsed on 1 March 2021, as the performance conditions were not met.

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 2020

Converted rights

Options
Exercised

9,411,363

8,838,863

8,661,177

6,077,967

5,911,177

5,994,572

937,500 (ii)

Net Change
Other

6,333,333 (i)

4,638,889 (i)

4,972,222 (i)

100,031 (i)

Balance

15,744,696

14,415,252

13,633,399

6,177,998

5,911,177

83,333 (i)

6,077,905

Notes to the table above:

(i)
(ii)

Vintage Energy Ltd Annual Report 2021
Vintage Energy Ltd Annual Report 2021

Directors’ report

(continued)

Indemnities given to, and insurance premiums paid for, auditors and officers
The number of options held during the financial year by each Director and other key management personnel of the
Insurance of officers
Company, including their personal related parties are detailed below.

During the year, Vintage paid a premium to insure officers of the Company. The officers covered by insurance include
all Directors and Officers.

Balance
1 July 2020

Options
Exercised

Options
granted

Balance

Name

1,000,000

Reg Nelson

Neil Gibbins

The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be bought
against the officers in their capacity as officers of the Company, and any other payments arising from liabilities incurred
by the officers in connection with such proceedings, other than where such liabilities arise out of conduct involving a
willful breach of duty by the officers or the improper use by the officers of their position or of information to gain
advantage for themselves or someone else to cause detriment to the Company.

Ian Howarth

Nick Smart

1,000,000

Ian Northcott

1,000,000

Details of the amount of premium paid in respect of insurance policies are not disclosed, as their disclosure is prohibited
under the terms of the contract.

Simon Gray

1,000,000

The Company has not otherwise, during or since the end of the financial year, except to the extent permitted by law,
All the above options lapsed on 17 September 2021.
indemnified or agreed to indemnify any current or former officer of the Company against a liability incurred as such by
an officer.
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. All Rights expired on 17 September 2021.
Indemnity of auditors

Name

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.

1,320,941 (i)

Reg Nelson

1,320,941

Balance
30 June 2021

Founders’
Rights

Balance
1 July 2020

Rights
converted

Rights
lapsed

Neil Gibbins
Proceedings of behalf of the Company
Ian Howarth

3,195,941

1320,941

937,500

1,320,941

1,320,941 (i)

Nick Smart

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking
-
responsibility on behalf of the Company for all or part of those proceedings.
-

1,320,941 (i)

Ian Northcott

Simon Gray

1,320,941

1,320,941 (i)

Non-audit services
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
During the year, Grant Thornton Audit Pty Ltd, the Company’s auditors, performed certain other services in addition to
issue. All Founders’ Rights lapsed on 17 September 2021.
their statutory audit duties.
Shares issued on exercise of remuneration options
The Board has considered the non-audit services provided during the year by the auditor and is satisfied that the
No shares were issued to Directors or key management as a result of the exercise of options during the financial year.
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:
As mentioned above, 937,500 shares were issued to Mr. Neil Gibbins upon vesting of performance rights during the
financial year.
•

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.

Employee incentive plan
•
the non-audit services do not undermine the general principles relating to auditor independence as set out in
The shareholders of the Company approved an employee incentive plan for employees at the Annual General Meeting
APES 110 Code of Ethics for Professional Accountants, as they did not involve reviewing or auditing the auditor’s
held on 27 November 2018. Performance rights issued pursuant to the plan to eligible employees other than Directors
own work, acting in a management or decision-making capacity for the Company, acting as an advocate for the
and key management personnel as at 30 June 2021 are detailed at note 15 to the financial statements.

Company or jointly sharing risks and rewards.
Transactions with key management personnel
Details of the amounts paid to the auditors of the Company, Grant Thornton Audit Pty Ltd, and its related practices for
An affiliate of the Managing Director is employed with the Company in a technical exploration position, with
audit and non-audit services provided during the year are set out in Note 22 to the financial statements.
remuneration based on an arm’s length review and at a rate consistent with the position filled. The Managing Director
has no role in the determination of salary or benefits paid to the employee. Other than the above, there were no other
A copy of the auditor’s independence declaration as required under s.307C of the Corporations Act 2001 is included
transactions with other key management personnel.
on the next page of this financial report and forms part of this Directors’ report.

END OF REMUNERATION REPORT

Directors’ report

(continued)

Indemnities given to, and insurance premiums paid for, auditors and officers

Insurance of officers

During the year, Vintage paid a premium to insure officers of the Company.

The officers covered by insurance include all Directors and Officers.

Details of the amount of premium paid in respect of insurance policies are not disclosed, as their disclosure is prohibited
under the terms of the contract.

The Company has not otherwise, during or since the end of the financial year, except to the extent permitted by law,
indemnified or agreed to indemnify any current or former officer of the Company against a liability incurred as such by
an officer.

Indemnity of auditors

The indemnity requires the Company to meet the full amount of any such liabilities including a reasonable amount of
legal costs.

Proceedings of behalf of the Company

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on
behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking
responsibility on behalf of the Company for all or part of those proceedings.

Non-audit services

During the year, Grant Thornton Audit Pty Ltd, the Company’s auditors, performed certain other services in addition to
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 22 to the financial statements.

Vintage Energy Ltd Annual Report 2021

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

29 September 2021

Auditor’s independence declaration

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

Auditor’s Independence Declaration

Energy Limited for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been:
To the Directors of Vintage Energy Limited
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.

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 2021, 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
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
b no contraventions of any applicable code of professional conduct in relation to the audit.

GRANT THORNTON AUDIT PTY LTD
J L Humphrey
Chartered Accountants
Partner – Audit & Assurance

Adelaide, 29 September 2021

J L Humphrey
Partner – Audit & Assurance

Adelaide, 29 September 2021

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.
Grant Thornton Audit Pty Ltd ACN 130 913 594
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.

www.grantthornton.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

Vintage Energy Ltd Annual Report 2021

Corporate governance statement

The Board is committed to achieving and demonstrating the highest standards of corporate governance. As such, the
Company has adopted the fourth edition of the Corporate Governance Principles and Recommendations which was
released by the ASX Corporate Governance Council on 27 February 2019 and became effective for financial years
beginning on or after 1 January 2020.

The Company’s corporate governance statement for the financial year ending 30 June 2021 was approved and dated
by the Board on 29 September 2021. The corporate governance statement is available on Vintage’s website at
https://www.vintageenergy.com.au/governance-policies.html

Statement of profit or loss and other
comprehensive income

For year ended 30 June 2021

Interest income

Joint Venture recoveries

Other income

COVID-19 cash flow boost receipts

Corporate recoveries

Depreciation expense

Exploration expense

Key management personnel option expense

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
2021
$
3,430

1,530,877

39,440

100,000

(39,440)

(238,367)

(70,376)

(2,542,440)

(1,151,604)

30 June
2020
$
105,888

1,279,738

35,979

(190,648)

(54,200)

(20,000)

(2,333,939)

(1,028,666)

(2,368,480)

(2,205,848)

(2,368,480)

(2,205,848)

(2,368,480)

(2,205,848)

Earnings per share

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

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

(0.0044)

(0.0079)

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

Vintage Energy Ltd Annual Report 2021

Statement of financial position

As at 30 June 2021

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

Provisions

Other financial liabilities

Total current liabilities

Non-Current Liabilities
Provisions

Other financial liabilities

Total non-current liabilities

Total Liabilities

Net Assets

Equity

Share capital

Reserves

Accumulated (losses)

Total Equity

Notes

30 June
2021
$

30 June
2020
$

7,369,036

706,079

8,075,115

3,443,239

378,307

3,821,546

426,004

37,161,165

37,587,169

45,662,284

169,539

28,942,270

29,111,809

32,933,355

166,024

365,033

160,717

691,774

925,000

219,627

1,144,627

1,836,401

163,332

198,539

320,380

682,251

925,000

1,607,251

43,825,883

31,326,104

51,907,858

36,891,576

480,705

(8,562,680)

43,825,883

867,181

(6,432,653)

31,326,104

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

Statement of changes in equity

For the year ended 30 June 2021

Notes

Share
capital

Accumulated
losses

Share
based
payments
reserve

Total equity

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

(2,205,848)

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

2,615,000

87,000

2,334

(205,563)

36,891,576

(6,432,653)

867,181

(87,000)

20,000

359,851

(2,205,848)

2,615,000

2,334

20,000

359,851

(205,563)

31,326,104

Balance at 1 July 2020

36,891,576

(6,432,653)

867,181

31,326,104

-
-

(2,368,480)

(338,385)

190,362

385,000

15,170,167

338,385

238,453

(238,453)

(877,270)

51,907,858

(8,562,680)

480,705

(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 at $0.06

Issue of ordinary shares on conversion of rights

Fair value of performance rights issued

Fair value of performance rights lapsed

Transaction costs

Balance at 30 June 2021

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

(2,368,480)

385,000

15,170,167

190,362

(877,270)

43,825,883

Vintage Energy Ltd Annual Report 2021

Statement of cash flows

For the year ended 30 June 2021

Cash flows from operating activities

Payments to suppliers and employees

Payments for exploration and evaluation expensed

Interest received

Government grants and tax incentives

Other income – recoveries

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
2021
$

30 June
2020
$

(3,382,608)

(3,446,993)

(70,376)

3,430

1,806,197

39,440

(54,199)

139,214

(1,603,917)

(3,361,978)

(8,699,804)

(18,007,305)

(34,025)

(3,450)

(8,733,829)

(18,010,755)

15,317,167

(877,270)

(176,354)

14,263,543

2,854,000

(206,563)

(127,677)

2,519,760

Net change in cash and cash equivalents

3,925,797

(18,852,973)

Cash and cash equivalents at the beginning of year

Cash and cash equivalents at end of year

3,443,239

7,369,036

22,296,212

3,443,239

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

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 2021 were approved and authorised for issue by the Board of Directors on 29 September 2021.

3 Changes in accounting policies

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

There are no new or revised Accounting Standards issued, or issued but not yet effective, which are expected to have a
material impact on the financial statements.

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

Vintage Energy Ltd Annual Report 2021

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

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, considering 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 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.

Vintage Energy Ltd Annual Report 2021

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 if 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’.

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 using
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.

Vintage Energy Ltd Annual Report 2021

Government grants are assistance by government in the form of transfers of resources to the Company in return for past
or future compliance with certain conditions relating to the operating activities of the Company. Government grants are not
recognised until there is reasonable assurance that the Company will comply with the conditions attached to them and the
grant will be received.

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

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.

After 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.

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 2021 the company recognised a loss of $2,368,480, had net cash outflows from operating
and investing activities of $10,337,746, and had accumulated losses of $8,562,680 as at 30 June 2021. 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 judgements

The directors evaluate estimates and judgements 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
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 based on current estimates of the liability. This estimate 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.

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.

Vintage Energy Ltd Annual Report 2021

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

(2,001,794)

(1,786,711)

30 June
2021
$

30 June
2020
$

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

Share registry and exchange costs

Subscriptions and technical publications

Sundry

Income taxes

(188,931)

(166,494)

115,278

(190,362)

(110,137)

(168,506)

(100,135)

197,605

(362,185)

(114,007)

(2,542,440)

(2,333,939)

(116,460)

(9,877)

(96,188)

(169,338)

(141,850)

(230,480)

(12,209)

(42,590)

(135,109)

(33,520)

(58,196)

(3,743)

(139,810)

(121,648)

(118,480)

(169,608)

(56,522)

(133,463)

(74,538)

(28,933)

(163,982)

(123,725)

(1,151,604)

(1,028,666)

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 26% (2020: 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
2021
$

30 June
2020
$

(2,368,480)

(2,205,848)

(615,805)

(606,608)

26,669

589,136

107,219

499,389

(589,136)

3,368,826

(499,389)

5,248,738

(2,779,690)

(4,749,349)

Total tax losses not brought to account at 30 June 2021 total $10,881,052 at 26% tax rate applicable. For the
Company’s policy on the accounting treatment of income taxes, refer to Note 4.4.

7 Cash and cash equivalents

Cash and cash equivalents consist of the following:

Cash on hand
Cash at bank (1)
Restricted cash (2)

30 June
2021
$

7,119,895

249,132

7,369,036

30 June
2020
$

3,443,230

3,443,239

(1)

Includes amounts pledged as security for bank guarantees and credit facilities amounting

to $137,865 (2020 $137,865)

(2) Held by the PRL 211 Joint Venture which can only be utilised for the PRL 211 expenditure program.

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 - buildings
Balance at 1 July
Additions for the year
Leased asset written back during the year

Balance as at 30 June

Accumulated depreciation and impairment

Balance at 1 July
Depreciation Expense (i)

Leased asset written back during the year

Balance 30 June

Net Book Value

(i)

Includes right of use asset depreciation of $168,849 (2020 - nil)

30 June
2021
$

598,348

33,203

74,528

706,079

30 June
2021
$
201,369
34,025

235,394

206,353
460,807
(206,353)

460,807

238,183

238,367

(206,353)

270,197

30 June
2020
$

261,098

46,298

70,911

378,307

30 June
2020
$
197,919
3,450

201,369

-
206,353
-

206,353

47,535

190,648

238,183

426,004

169,539

Vintage Energy Ltd Annual Report 2021

10 Exploration and evaluation assets

Balance at 1 July
Additions for the year (i)
Research & Development refund (ii)
PACE grant brought to account (iii)

Balance at 30 June

30 June
2021
$
28,942,270
9,925,092
(1,706,197)
-

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

37,161,165

28,942,270

(i)

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

Operated
permit
$

Non-operated
permit
$

PEL 155 Joint Venture

Galilee Deeps Joint Venture

ATP2021 Joint Venture

5,982,578

Cervantes Joint Venture

EP126, Bonaparte Basin

PRL211 Joint Venture

Other (PEP171, GSEL672)

78,527

1,980,545

17,646

1,506,504

26,059

333,233

Total additions

8,059,296

1,865,796

Total
additions
$

1,506,504

26,059

5,982,578

333,233

78,527

1,980,545

17,646

9,925,092

Closing
balance
$

7,843,118

12,317,495

11,504,334

878,685

2,406,355

1,980,545

230,633

37,161,165

(ii)

(iii)

The Company received a tax incentive refund from the Australian Taxation Office in April 2021
relating to eligible Research & Development expenditure incurred in the Galilee Basin during the
2019 and 2020 financial years. The amount received has been offset against the relevant
expenditure in accordance with the Company’s accounting policy.
The Plan for Accelerating Exploration (PACE) Gas grant had been held as a liability in the
Statement of Financial Position in previous years.

11 Trade and other payables

Trade and other payables consist of the following:

Current

Trade payables

Other creditors

Total trade and other payables

30 June
2021
$

68,252

97,772

166,024

30 June
2020
$

62,233

101,099

163,332

12 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
2021
$

365,033

925,000

198,539

166,494

365,033

925,000

30 June
2020
$

198,539

925,000

98,404

100,135

198,539

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.

13 Other financial liabilities

Current
Lease liability (i)
Other financial liability (ii)

Non-Current
Lease liability (i)

(i)

Movement in lease liability:

Opening balance

Lease liability recognised

Rent payments made during the year

Interest expense on lease liability recognised during the year

30 June
2021
$
160,717
-

160,717

219,627

82,380

460,807

(168,805)

5,962

380,344

30 June
2020
$
82,380
238,000

320,380

206,353

(126,445)

2,472

82,380

(ii)

In the prior year, 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 contributions 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.

Vintage Energy Ltd Annual Report 2021

Issued capital

Ordinary shares

Balance at 30 June

Shares issued and fully paid:
Ordinary Shares (i)

Beginning of the year

Shares allotted during the period

Conversion of performance rights

Issued under share-based payments

Share issue costs

Total ordinary shares

30 June
2021
$
51,907,858

30 June
2020
$
36,891,576

51,907,858

36,891,576

30 June
2021
Number

30 June
2021
$

30 June
2020
Number

30 June
2020
$

339,956,294

36,891,576

266,575,739

34,392,805

263,530,553

15,555,167

72,638,889

2,615,000

1,819,000

338,385

(877,270)

725,000

16,666

87,000

2,334

(205,563)

605,305,847

51,907,858

339,956,294

36,891,576

Total contributed equity at 30 June

605,305,847

51,907,858

339,956,294

36,891,576

(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:

• 10,694,445 ordinary shares via a capital placement at $0.036 per share
• 252,836,108 ordinary shares via a share purchase plan at $0.06 per share
• 1,819,000 ordinary shares on the conversion of performance rights

15 Share options and founders’ rights

Founders’ rights

Founders’ rights totaling 7,925,646 expired on 17 September 2021, being the third anniversary of the issue date
of the founders’ rights.

Share options

No options were issued during the year.

Shares issued on exercise of remuneration performance rights

As detailed in the table below, a total of 881,500 shares were issued to Management on conversion of performance
rights following the meeting of performance conditions. A further 724,000 performance rights lapsed during the
year.

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

Opening
Balance

Converted on
performance
condition met

Lapsed

Closing
Balance

Class A

Class B

Class C

August 2019

157,500

(157,500)

November 2018

724,000

(724,000)

June 2019

November 2018

June 2019

362,500

724,000

362,500

(724,000)

362,500

Value on
issue
$

22,050

119,460

43,500

79,640

34,438

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.

Vintage Energy Ltd Annual Report 2021

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
Otway Basin PRL 249 (ex PEL 155) (i)
Otway Basin PEP 171 (ii)
ATP 2021
PRL 211 (iii)
PELA 679 (iv)
Perth Basin – L14 Cervantes Prospect (v)

30 June
2021
% Interest
30
50
25
50
42.5
-
-

30 June
2020
% Interest
30
50
25
50
42.5
-
-

(i) PEL 155 expired on 5 May 2021, after the Joint Venture had applied for and been granted Petroleum Retention Licence

(PRL) 249, covering the Nangwarry CO2 discovery area.

(ii) 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).

(iii) Vintage funded 50% of the cost of the Odin-1 exploration well (approximately $1.8 million) for 42.5% equity in PRL 211.

(iv) 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 South
Australian government, Vintage will have a 100% interest in the permit with options to finance the firm work program through
potential introduction of a joint venture partner/s.

(v) Vintage is funding 50% of the Cervantes-1 exploration well (approximately $3.8 million) to earn a 30% interest in any Permian
oil discovery in the Cervantes prospect.

17 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:

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.

30 June
2021

Number

536,404,753

30 June
2020

Number

278,878,748

18 Commitments

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 more than 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:

30 June
2021
$

30 June
2020
$

6,588,700

3,096,200

9,684,900

8,119,000

7,501,000

15,620,000

Exploration and evaluation

No longer than 1 year

Longer than 1 year but less than 5 years

19 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
2021 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.

(b)

Financial risk management objectives

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

Total financial liabilities

30 June
2021
$

7,369,036

706,079

8,075,115

166,024

380,344

546,368

30 June
2020
$

3,443,239

378,307

3,821,546

163,332

82,380

238,000

483,712

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.

Vintage Energy Ltd Annual Report 2021

Weighted
average
effective
interest
rate

Less than 1
month

1 to
3 months

3 months
to 1 year

1 to 5
years

5
plus

Total

0.00%

0.75%

1.50%

6,982,030

706,079

249,132

137,865

(166,024)

(160,717)

(219,627)

6,982,039

789,187

(22,852)

(219,627)

706,088

7,231,162

137,865

(546,368)

7,528,747

Weighted
average
effective
interest
rate

Less than 1
month

1 to 3
months

3 months to
1 year

1 to 5
years

5
plus

Total

0.00%

0.75%

1.50%

378,307

3,305,365

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

2021

Financial assets:
Non-interest bearing

Variable interest rate

Fixed interest rate

Financial
liabilities:
Non-interest bearing

2020

Financial assets:
Non-interest bearing

Variable interest rate

Fixed interest rate

Financial
liabilities:
Non-interest bearing

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 $5,630.

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 (2020: net fair value).

Financial assets and financial liabilities are recognised at amortised cost.

20 Contingent liabilities

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

21 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
2021
$

585,847

196,875

52,081

834,803

30 June
2020
$

591,110

178,082

53,583

822,775

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.

No other related party transactions have occurred during the year (2020 – nil).

22 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.

23 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

Government grants and tax incentives

Changes in assets and liabilities:

(Increase)/decrease in trade and other receivables

Increase in provisions

Increase/(decrease) in trade and other payables

30 June
2021
$

30 June
2020
$

53,000

3,000

56,000

48,000

2,500

50,500

30 June
2021
$

30 June
2020
$

(2,368,480)

(2,205,848)

238,367

190,362

190,648

382,185

(115,278)

(197,605)

(1,530,877)

(1,279,738)

1,806,197

11,482

(166,494)

330,804

(5,792)

(100,135)

(145,693)

(1,603,917)

(3,361,978)

Vintage Energy Ltd Annual Report 2021

24 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.

Issue of performance rights pursuant to the employee share scheme

The Directors approved an issue of performance rights to eligible employees. The following rights were granted
after year end:

Performance
Right

Issued
date

Number

Term

Value on issue
$

STI

2 August 2021

7,814,900

LTI 1

2 August 2021

5,860,300

LTI 2

2 August 2021

5,860,300

Employed by Vintage and first gas to
market by end of FY22.

Employed by Vintage at
30 June 2024 and CO2 production
commenced or Nangwarry project
monetised prior to end FY24.

Employed by Vintage at
30 June 2024 and Market Cap of
$100million reached prior to end FY24.

432,710

88,407

25 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 2021 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.

Reg Nelson
Chairman

29 September 2021

Vintage Energy Ltd Annual Report 2021

Independent auditor’s report

Level 3, 170 Frome Street
Adelaide SA 5000

Correspondence to:
GPO Box 1270
Adelaide SA 5001

T +61 8 8372 6666

Independent Auditor’s Report
To the Members of Vintage Energy Limited

Report on the audit of the financial report

Opinion

We have audited the financial report of Vintage Energy Limited (the Company), which comprises the statement of financial
position as at 30 June 2021, the statement of profit or loss and other comprehensive income, statement of changes in
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.

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

a Giving a true and fair view of the Company’s financial position as at 30 June 2021 and of its performance for the year

ended on that date; and

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

Basis for opinion

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
independent of the Company 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
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

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

Material uncertainty related to going concern

We draw attention to Note 4.20 in the financial statements, which indicates that the Company recognised a net loss of
$2,368,480 and had net cash outflows from operating and investing activities of $10,337,746 during the year ended 30 June
2021, and as of that date, the Company’s accumulated losses was $8,562,680. 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

Liability limited by a scheme approved under Professional Standards Legislation.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.

In addition to the matter described in the Material uncertainty related to going concern section, we have determined the
matters described below to be the key audit matters to be communicated in our report.

Key audit matter

How our audit addressed the key audit matter

Exploration and evaluation assets – Notes 4.13 and 10

At 30 June 2021 the carrying value of exploration and
evaluation assets was $37,161,165.

In accordance with AASB 6 Exploration for and Evaluation of
Mineral Resources, the Company is required to assess at
each reporting date if there are any triggers for impairment
which may suggest the carrying value is in excess of the
recoverable value.

The process undertaken by management to assess whether
there are any impairment triggers in each area of interest
involves an element of management judgement.

This area is a key audit matter due to the significant
judgement involved in determining the existence of impairment
triggers.

Our procedures included, amongst others:



obtaining an understanding of management’s processes
and internal controls to evaluate impairment triggers in
each area of interest;

obtaining management’s reconciliation of capitalised
exploration and evaluation expenditure and agreeing to the
general ledger;

evaluating management’s area of interest considerations
against AASB 6;

evaluating management’s assessment of trigger events
prepared in accordance with AASB 6 including;

 tracing projects to statutory registers, exploration

licenses and third party confirmations to determine
whether a right of tenure existed;

 inquiries of management regarding their intentions to
carry out exploration and evaluation activity in the
relevant exploration area, including review of
management’s budgeted expenditure;

 understanding whether any data exists to suggest that
the carrying value of these exploration and evaluation
assets are unlikely to be recovered through
development or sale;

evaluating the competence, capabilities and objectivity of
management’s experts in the evaluation of potential
impairment triggers; and

assessing the appropriateness of the related financial
statement disclosures.

Information other than the financial report and auditor’s report thereon

The Directors are responsible for the other information. The other information comprises the information included in the
Company’s annual report for the year ended 30 June 2021, but does not include the financial report and our auditor’s report
thereon.

Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.

Vintage Energy Ltd Annual Report 2021Responsibilities of the Directors for the financial report

The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.

In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: https://www.auasb.gov.au/auditors_responsibilites/ar2_2020.pdf. This description forms part of
our auditor’s report.

Report on the remuneration report

Opinion on the remuneration report

We have audited the Remuneration Report included in the Directors’ report for the year ended 30 June 2021.

In our opinion, the Remuneration Report of Vintage Energy Limited, for the year ended 30 June 2021 complies with
section 300A of the Corporations Act 2001.

Responsibilities

The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.

GRANT THORNTON AUDIT PTY LTD
Chartered Accountants

J L Humphrey
Partner – Audit & Assurance

Adelaide, 29 September 2021

Schedule of tenements

Tenement

Basin

Operator

Interest held
30 June 2021

Interest held
30 June 2020

Queensland

ATP 743 (1)

ATP 744 (1)

ATP 1015 (1)

ATP 2021

South Australia

Galilee

Comet Ridge Ltd

Cooper/Eromanga

Vintage Energy Ltd

PRL 211

Cooper/Eromanga

Vintage Energy Ltd

PRL 249 (ex PEL 155)

Otway

Otway Energy Pty Ltd

PELA 679 (2)

Cooper/Eromanga

Vintage Energy Ltd

30%

50%

42.5%

50%

30%

50%

42.5%

50%

Victoria

PEP 171 (3)

Western Australia

L 14 (4)

Northern Territory

Otway

Vintage Energy Ltd

25%

Perth

RCMA Australia Pty Ltd

EP 126

Bonaparte

Vintage Energy Ltd

100%

Notes to the table above:

(1) "Deeps" JV contractual agreement with Comet Ridge Ltd. This is defined as all strata commencing

underneath the Permian coals and without a lower limit.

(2) Subject to reaching a Native Title Agreement, Vintage will acquire 100% interest of the permit.

(3) Vintage’s interest may be increased to 50% by completion of further farm-in obligations.

(4) Vintage earning 30% in Cervantes prospect only, not permit wide.

Vintage Energy Ltd Annual Report 2021

Information pursuant to the listing
requirements of the ASX
Number of holders of equity securities

Ordinary shares

At 22 September 2021, the issued capital comprised of 605,305,846 ordinary shares held by 2,210 holders.

Employee performance rights

At 22 September 2021, there were 20,260,500 performance rights on issue with a $nil exercise price.
Each performance right converts into one share on the occurrence of certain conditions. They do not carry the
right to vote.

Spread details as at 22 September 2021 for ordinary shares

Holding Ranges

1 - 1,000

1,001 - 5,000

5,001 – 10,000

10,001 – 100,000

100,001 – 9,999,999,999

Totals

Holders

Total Units

% Issued Share Capital

303

1,192

649

2,210

2,388

160,837

2,545,684

50,707,360

551,889,577

605,305,846

0.00%

0.03%

0.42%

8.37%

91.18%

100.00%

Holders less than a marketable parcel = 170.

Information pursuant to the listing
requirements of the ASX
Number of holders of equity securities (continued)

Substantial Shareholders as at 22 September 2021

Number of shares

BNP PARIBAS NOMS PTY LTD

58,589,567

9.68%

Top Twenty Shareholders as at 22 September 2021

Position

Holder Name

Holding

BNP PARIBAS NOMS PTY LTD

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2

MR DOMINIC VIRGARA

UBS NOMINEES PTY LTD

HOWZAT SERVICES PTY LTD

EQUITAS NOMINEES PTY LIMITED

N M GIBBINS

AURELIUS RESOURCES PTY LTD

MR REGINALD GEORGE NELSON & MRS SUSAN MARGARET NELSON

CITICORP NOMINEES PTY LIMITED

COOEE INVESTMENTS PTY LTD

58,589,567

30,194,003

20,100,000

12,750,000

9,077,842

9,003,780

8,754,075

8,083,519

7,661,176

7,206,639

6,710,185

JH NOMINEES AUSTRALIA PTY LTD

6,450,000

MR CHRISTOPHER JAMIESON

MONLEY PTY LTD

MR JEFFREY LEONARD BENNETTS & MRS HELEN JUDITH BENNETTS

SMART HOLDINGS PTY LTD

CATHARINE MARY GIBBINS

HOWZAT SERVICES PTY LTD

VIEWADE PTY LIMITED

NETWEALTH INVESTMENTS LIMITED

6,305,397

6,077,904

6,000,000

5,977,905

5,661,177

4,555,556

4,291,946

4,070,000

9.68%

4.99%

3.32%

2.11%

1.50%

1.49%

1.45%

1.34%

1.27%

1.19%

1.11%

1.07%

1.04%

1.00%

0.99%

0.93%

0.75%

0.70%

0.67%

Total

Total Issued Capital

227,520,671

37.59%

605,305,846

100.00%

Vintage Energy Ltd Annual Report 2021

Glossary

The following glossary of terms and abbreviations is divided into two parts:

1. Resources and reserves as defined by the SPE-PRMS;
2. General terms commonly used in the upstream petroleum industry.

Terms and abbreviations for resources and reserves as per the SPE-PRMS

PRMS

Petroleum Resources Management System. Reserves and Resources are defined by the
Society of Petroleum Engineers (‘SPE’), American Association of Petroleum Geologists
(‘AAPG’), World Petroleum Council (‘WPG’) and the Society of Petroleum Evaluation
Engineers (‘SPEE’). The detail of the PRMS is available as a download from the website of
the SPE: www.spe.org

The petroleum resources classification framework is illustrated below:

Prospective Resources

Those quantities of petroleum estimated, as of a given date, to be potentially recoverable
from undiscovered (hypothetical) accumulations by application of future development
projects. The categories of decreasing certainty are Low, Best and High Estimates.

Low, 1U

Best, 2U

High, 3U

Play

Lead

Prospect

Chance of Discovery

Low estimate of Prospective Resources. The abbreviation “1U” is an informal, alternative
acronym

Best estimate of Prospective Resources. The abbreviation “2U” is an informal, alternative
acronym.

High estimate of Prospective Resources. The abbreviation “3U” is an informal, alternative
acronym.

A project associated with a prospective trend of potential prospects, but which requires
more data acquisition and/or evaluation to define specific leads or prospects. The
succession of increasing maturity of concept is play, lead and then prospect.

A project associated with a potential accumulation that is currently poorly defined and
requires more data acquisition and/or evaluation to be classified as a prospect. A lead has a
greater maturity of concept than a play but less than a prospect.

A project associated with a potential accumulation that is sufficiently well defined to
represent a viable drilling target and does not require further data acquisition or evaluation
i.e., a prospect is mature for drilling.

The chance that the accumulation will result in the discovery of petroleum. The term chance
is preferred in lieu of risk for general usage. Commonly applied to a drillable prospect where
Prospective Resources are estimated, and factors include the product of the separate
chances of source rock, migration, reservoir and trap.

Chance of Development

The chance that a prior discovery of petroleum will be commercially developed.

Chance of Commerciality

For an undiscovered accumulation the chance of commerciality is the product of the chance
of discovery and chance of development

Discovery

Is one or more accumulations of petroleum for which one or more exploratory wells have
established through testing, sampling and/or logging the existence of significant quantities of
potentially moveable hydrocarbons. In this context “significant” implies that there is evidence
of a sufficient quantity of petroleum to justify estimating the in-place volume demonstrated
by the well(s) and for evaluating the potential for economic recovery.

Contingent Resources

Those quantities of petroleum are estimated, as of a given date, to be potentially
recoverable from known accumulations, but the applied project(s) are not yet currently
mature enough for commercial development due to one or more contingencies. The
categories of decreasing certainty are Low, Best and High estimates.

Reserves

Low estimate of Contingent Resources.

Best estimate of Contingent Resources.

High estimate of Contingent Resources.

Those quantities of petroleum anticipated to be commercially recoverable by application of
development projects to known accumulations from a given date forward under defined
conditions. The categories in decreasing certainty are Proved, Probable and Possible.

1P, Proved

Proved reserves (deterministic or probabilistic).

2P, Proved and Probable

Proved plus Probable reserves (deterministic or probabilistic).

3P, Proved, Probable and
Possible
3P, Proved, Probable and
Range of Uncertainty
Possible

Range of Uncertainty

Deterministic

Deterministic
Probabilistic

Probabilistic

P90
Probabilistic Estimate
P90
P50
Probabilistic Estimate
Probabilistic Estimate
P50
Probabilistic Estimate
P10
Probabilistic Estimate
P10
Probabilistic Estimate

Proved plus Probable plus Possible reserves (deterministic or probabilistic).

Proved plus Probable plus Possible reserves (deterministic or probabilistic).
The range of estimated quantities of potentially recoverable petroleum in any one of the
three categories, Prospective Resources, Contingent Resources and Reserves. Three
estimates are designated to describe the range, with decreasing certainty from low to high.
The range of estimated quantities of potentially recoverable petroleum in any one of the
Because the absolute minimum and absolute maximum outcomes are the extreme cases it
three categories, Prospective Resources, Contingent Resources and Reserves. Three
is considered more practical to use low and high estimates as a reasonable representation
estimates are designated to describe the range, with decreasing certainty from low to high.
of the range of uncertainty. There are two methods; deterministic and probabilistic.
Because the absolute minimum and absolute maximum outcomes are the extreme cases it
is considered more practical to use low and high estimates as a reasonable representation
A deterministic estimate is a single discrete scenario within a range of outcomes. Each of
of the range of uncertainty. There are two methods; deterministic and probabilistic.
the input parameters is a single value.

A deterministic estimate is a single discrete scenario within a range of outcomes. Each of
The statistical uncertainty of individual reservoir parameters is used to calculate the
the input parameters is a single value.
statistical uncertainty of the in-place and recoverable resource volumes. Often a stochastic
(i.e., Monte Carlo) method is used to calculate probability functions by random sampling of
The statistical uncertainty of individual reservoir parameters is used to calculate the
the input distributions. The range of uncertainty is selected from volumes sampled at 90%,
statistical uncertainty of the in-place and recoverable resource volumes. Often a stochastic
50% and 10% of the output distribution.
(i.e., Monte Carlo) method is used to calculate probability functions by random sampling of
the input distributions. The range of uncertainty is selected from volumes sampled at 90%,
From the probabilistic method there is a greater than 90% cumulative probability that
50% and 10% of the output distribution.
quantities estimated would ultimately be exceeded.

From the probabilistic method there is a greater than 90% cumulative probability that
This category is considered to be the most likely outcome. From the probabilistic method
quantities estimated would ultimately be exceeded.
there is an equal (i.e., 50%) probability that quantities estimated would ultimately be greater
or smaller.
This category is considered to be the most likely outcome. From the probabilistic method
there is an equal (i.e., 50%) probability that quantities estimated would ultimately be greater
From the probabilistic method there is a less than 10% cumulative probability that quantities
or smaller.
estimated would ultimately be exceeded.

From the probabilistic method there is a less than 10% cumulative probability that quantities
estimated would ultimately be exceeded.

General terms and abbreviations used in the petroleum industry

Two dimensional; usually referring to a seismic survey with a coarse grid of orthogonal lines.

General terms and abbreviations used in the petroleum industry
2D
3D
2D
ASX
3D
ATP
ASX
B
ATP
bbl
B
Bcf
bbl
Blooie Line
Bcf
Blooie Line
Boe

Three dimensional; usually referring to a seismic survey with a fine grid of orthogonal lines.
Two dimensional; usually referring to a seismic survey with a coarse grid of orthogonal lines.
Australian Securities Exchange.
Three dimensional; usually referring to a seismic survey with a fine grid of orthogonal lines.
Authority to Prospect which is an exploration licence in Queensland.
Australian Securities Exchange.
Billion 109, or 1,000 million.
Authority to Prospect which is an exploration licence in Queensland.
One barrel of crude oil contains 42 US gallons (or 34.97 imperial gallons, or, 159 litres).
Billion 109, or 1,000 million.
Billion cubic feet.
One barrel of crude oil contains 42 US gallons (or 34.97 imperial gallons, or, 159 litres).
Large diameter flow line for air or gas drilling, that diverts the flow of air or gas from the rig
Billion cubic feet.
into a discharge (flare) pit area.

Boe

Bopd

Brent
Bopd

Brent

Carboniferous

Condensate
Carboniferous

Condensate

Conventional

Cretaceous
CSG
Cretaceous
CSG

Large diameter flow line for air or gas drilling, that diverts the flow of air or gas from the rig
Barrels of oil equivalent. Natural gas is converted to barrels of oil equivalent generally using
into a discharge (flare) pit area.
a ratio of approximately 6,000 cubic feet of natural gas as an amount equivalent to one
barrel of oil.
Barrels of oil equivalent. Natural gas is converted to barrels of oil equivalent generally using
a ratio of approximately 6,000 cubic feet of natural gas as an amount equivalent to one
A liquid flow rate expressed in barrels of oil per day.
barrel of oil.
Brent crude oil marker. The price of oil from the giant Brent oil field in the North Sea became
A liquid flow rate expressed in barrels of oil per day.
a reference marker for other types of crude oil, plus or minus a differential for quality and
other factors. Thus, Brent Futures Contracts became tradeable on various financial markets
Brent crude oil marker. The price of oil from the giant Brent oil field in the North Sea became
both for hedging purposes and as a part of commodities trading in general.
a reference marker for other types of crude oil, plus or minus a differential for quality and
other factors. Thus, Brent Futures Contracts became tradeable on various financial markets
A period 359 to 299 million years ago.
both for hedging purposes and as a part of commodities trading in general.
A liquid hydrocarbon phase that is slightly lighter than and with less calorific content than
A period 359 to 299 million years ago.
crude oil. More usually occurs in association with natural gas. It is gaseous at reservoir
conditions but will condense from gaseous vapour to a liquid at the lesser temperature and
A liquid hydrocarbon phase that is slightly lighter than and with less calorific content than
pressure at standard surface conditions.
crude oil. More usually occurs in association with natural gas. It is gaseous at reservoir
conditions but will condense from gaseous vapour to a liquid at the lesser temperature and
Conventional hydrocarbons or Conventional Oil and Gas refers to petroleum, (crude oil and
pressure at standard surface conditions.
raw natural gas) occurring in discrete accumulations or reservoirs where the source of
hydrocarbons is distant, and the hydrocarbons migrate to a trap. The hydrocarbons are
Conventional hydrocarbons or Conventional Oil and Gas refers to petroleum, (crude oil and
extracted from the ground by conventional means and methods, i.e., after drilling and using
raw natural gas) occurring in discrete accumulations or reservoirs where the source of
the natural reservoir pressure or pumping and can include stimulation.
hydrocarbons is distant, and the hydrocarbons migrate to a trap. The hydrocarbons are
extracted from the ground by conventional means and methods, i.e., after drilling and using
A period from 145 to 66 million years ago.
the natural reservoir pressure or pumping and can include stimulation.
Coal seam gas.
A period from 145 to 66 million years ago.

Coal seam gas.

Vintage Energy Ltd Annual Report 2021

Glossary
Glossary
(continued)
(continued)

Devonian
Devonian
DST
DST

EP
EP
Fault
Fault
Gas Condensate
Gas Condensate

GJ
GJ
Graben
Graben

Hydraulic fracturing
Hydraulic fracturing

Hydrocarbon
Hydrocarbon

Improved Recovery
Improved Recovery

Joule
Joule
KB
KB

Km
Km
Km2
Km2
LNG
LNG
LNG Netback Price
LNG Netback Price
Logs
Logs

m
m
M
M
MM
MM
Net pay
Net pay

A period of time from 419 to 359 million years ago.
A period from 419 to 359 million years ago.

Drill stem test. A procedure for isolating and testing the pressure, permeability and flow
capacity of a geological formation during the drilling of a well. Mechanical valves are located
in a special cylindrical tool and connected at the base of a drill string and are activated into
the set, and open or closed position by applying weight or rotation of the drill pipe
respectively.

Drill stem test. A procedure for isolating and testing the pressure, permeability, and flow
capacity of a geological formation during the drilling of a well. Mechanical valves are in a
special cylindrical tool and connected at the base of a drill string and are activated into the
set, and open or closed position by applying weight or rotation of the drill pipe respectively.

Exploration Permit for petroleum as in the Northern Territory.

A fracture in a rock mass, with the movement of one side past the other.

Hydrocarbons which are gaseous at reservoir conditions, but which condense to liquids
when the temperature and pressure falls below the dewpoint. Refer also to condensate.

Hydrocarbons which are gaseous at reservoir conditions but which condense to liquids
when the temperature and pressure falls below the dewpoint. Refer also to condensate.

Gigajoule. A joule is a measure of heating value. 1 GJ is equal to 1 x 109 joules.

Is a fault block, generally greater in length than its width that has been downfaulted relative
to the adjacent blocks.

The high pressure injection of “fraccing fluid”, primarily water, minor thickening agents and
The high pressure injection of “fraccing fluid”, primarily water, minor thickening agents and
suspended proppants (e.g., sand or aluminium oxide micro-pellets) into a well to create
suspended proppants (e.g. sand or aluminium oxide micro-pellets) into a well to create
cracks propagated in the subsurface rocks for a small radius around the wellbore. When the
cracks propagated in the subsurface rocks for a small radius around the wellbore. When the
pressure is released the solid proppants prevent the cracks from closing (i.e. hold the
pressure is released, the solid proppants prevent the cracks from closing (i.e., hold the
fractures open) and allow petroleum to flow more freely into the wellbore as an aid to the
fractures open) and allow petroleum to flow more freely into the wellbore as an aid to the
production recovery process.
production recovery process.

A naturally occurring organic compound comprising hydrogen and carbon. Hydrocarbons
can be as simple as methane (CH4), but many are highly complex molecules and can occur
as gases, liquids or solids.

A naturally occurring organic compound comprising hydrogen and carbon. Hydrocarbons
can be as simple as methane (CH4), but many are highly complex molecules and can occur
as gases, liquids, or solids.

The extraction of additional petroleum, beyond primary recovery, from naturally occurring
reservoirs by supplementing the natural forces in the reservoir. It includes waterflooding and
gas injection for pressure maintenance, secondary processes, tertiary processes and any
other means of supplementing natural reservoir recovery processes. Improved recovery
also includes thermal and chemical processes to improve the in-situ mobility of viscous
forms of petroleum (also called Enhanced Recovery).

The extraction of additional petroleum, beyond primary recovery, from naturally occurring
reservoirs by supplementing the natural forces in the reservoir. It includes waterflooding and
gas injection for pressure maintenance, secondary processes, tertiary processes, and any
other means of supplementing natural reservoir recovery processes. Improved recovery
also includes thermal and chemical processes to improve the in-situ mobility of viscous
forms of petroleum (also called Enhanced Recovery).

Is the energy dissipated as heat when an electric current of one ampere passes through a
resistance of one ohm for one second.

Kelly bushing. A hexagonal spline, the kelly drive slides though the kelly bushing and
Kelly bushing. A hexagonal spline, the kelly drive slides though the kelly bushing and
permits a length of drill pipe to be drilled into the wellbore. When the kelly is fully
permits a length of drill pipe to be drilled into the wellbore. When the kelly is fully
descended, the drillstring is lifted, the kelly disconnected and a new length of drillpipe
descended, the drillstring is lifted, the kelly disconnected and a new length of drillpipe
re-connected and the drilling process continues. The kelly bushing fits into the rotary
re-connected and the drilling process continues. The kelly bushing fits into the rotary
turntable fixed into the floor of the drill rig. Depth measurement is relative to the top of KB
turntable fixed into the floor of the drill rig. Depth measurement is relative to the top of KB
(usually around one foot above the rig floor) but otherwise may be relative to the top of the
(usually around one foot above the rig floor) but otherwise may be relative to the top of the
rotary table; RT.
rotary table; RT.

Kilometres.

Kilometres.
A square kilometre.

A square kilometre.

Liquefied natural gas.

Free on board (“FOB”) export price of LNG at the receiving terminal. The buyer is
responsible for shipping and transportation.

The measurement versus depth or time, or both, of one or more physical quantities in or
around a well. Logs are measured downhole and transmitted through a wireline for
The measurement versus depth or time, or both, of one or more physical quantities in or
recording at the surface. Common measurements include the background gamma radiation,
around a well. Logs are measured downhole and transmitted through a wireline for
acoustic velocity, density, and resistance of rocks and the pressure, temperature and flow
recording at the surface. Common measurements include the background gamma radiation,
rates of petroleum fluids.
acoustic velocity, density, and resistance of rocks and the pressure, temperature, and flow
rates of petroleum fluids.

Metres

1,000

1,000
Millions 106

Millions 106

The thickness of reservoir considered to be gas or oil bearing and capable of contributing to
production into the wellbore. Usually there will be several cutoff parameters including a
porosity minimum, a shale maximum and a water saturation maximum.

OGIP, OGIIP

OOIP, OOIIP

Oil Shale

P&A

PEL
Permian
Permit Areas

Pool

Porosity

Reflectors

Reservoir

Resources

Risk

RTSTM

scf

scf/d

Seismic

Shale volume

Original gas (initially) in place. The estimated quantity of gas which may originally have
occurred in a reservoir.

Original oil (initially) in place. The estimated quantity of oil which may originally have
occurred in a reservoir.

Shale, siltstone and marl deposits highly saturated with kerogen. Whether extracted by
mining or in-situ processes, the material must be extensively processed to yield a
marketable product (synthetic crude oil). They are totally different from Shale Oil

Plugged and abandoned. Refers to the process of the final abandonment of petroleum wells
usually by spotting cement plugs at key intervals within the well to ensure the protection and
isolate of aquifers and depleted reservoirs. Any surface wellheads are removed and the
general location restored to a natural state.

Petroleum Exploration Licence as used in South Australia.

A period 299 to 251 million years ago.

The land subject of the Permits in which Vintage Energy has an interest from time to time.

Petajoule. A joule is a measure of heating value. 1 PJ is equal to 1 x 1015 joules

An individual and separate accumulation of petroleum in a reservoir.

The pore space in a reservoir which can contain fluids, either water, oil, or gas. (i.e., the
space between beach sand grains).

As in seismic reflectors. Refer to Seismic.

A subsurface rock formation containing an individual and separate natural accumulation of
moveable petroleum that is confined by impermeable rocks/ formations and is characterised
by a single-pressure system.

The term “Resources” as used herein is intended to encompass all quantities of petroleum
(recoverable and unrecoverable) naturally occurring on or within the Earth’s crust,
discovered and undiscovered, plus those quantities already produced.

The probability of loss or failure. As “risk” is generally associated with the negative outcome,
the term “chance” is preferred for general usage to describe the probability of a discrete
event occurring.

Retention licence. Where a Contingent Resource has been discovered and development is
not viable in the immediate future, a retention licence may be awarded but usually with
much less onerous terms (work program and expenditure).

Rotary Table. Refer to KB, kelly bushing.

Refers to a flow of gas recovered at the surface as a consequence of well testing but flows
at a rate too small to measure. There is sufficient flow to light a flare but insufficient pressure
to register on the gauge or enable the flow rate to be calculated.

Standard cubic feet. Usually referring to gas at standard conditions.

A flow rate in standard cubic feet per day.

A seismic survey measures at geophone locations the time for a shock wave propagated at
the surface to travel deep into the earth, strike rock strata and reflect back to the surface.
Dynamite as the historical source has almost entirely been replaced with vibroseis onshore
(i.e., truck mounted and weighted vibrator plates) or acoustic source offshore. A good
reflector is the interface between two rock strata of differing density and or acoustic velocity
e.g., between sandstone and shale or limestone and mudstone. Interbedded strata thinner
than ~10 metres are more difficult to resolve. A survey progresses along lines aligned in a
grid and with orthogonal cross lines. After suitable computer processing to “stack” the traces
of individual source points and geophones into seismic sections these provide a “picture” of
the structure of the subsurface reflectors.

This is the portion of rock which is occupied by “shales” (in fact, usually more correctly
called mudstone). For example, a “shaly” sandstone interval may contain 15% shale either
as thin laminations or clay minerals within the sandstone matrix. At a certain maxima, the
shale volume may preclude the occurrence of any effective porosity.

Standard conditions

Measurements of volumes at standard conditions means 14.7 psia and 60°F (US).

Sub-blocks

Petroleum tenements are often defined as blocks. In Queensland there are 25 (5 x 5)
sub-blocks within a block.

Vintage Energy Ltd Annual Report 2021

Glossary
Glossary
(continued)
(continued)

Devonian
TCF
DST
TD
Tectonic

Tenement

EP
TJ
Fault
TOC
Gas Condensate
Unconventional oil and
gas
GJ
VR
Graben

Hydraulic fracturing
Water saturation

Hydrocarbon
WTI

Improved Recovery

Joule

Km
Km2
LNG
LNG Netback Price

Logs

m
M
MM
Net pay

A period of time from 419 to 359 million years ago.

Trillion cubic feet of gas.

Total depth of the well.

Pertaining to forces and the geological architecture that results, such as faults, folds etc.

Ground granted for exploration or production purposes.

Terajoule; a joule is a measure of heating value. 1 TJ is equal to 1 x 1012 joules

Exploration Permit for petroleum as in the Northern Territory.

Total organic carbon, a measure of the dry weight percent of organic carbon within rocks.

A fracture in a rock mass, with the movement of one side past the other.

Hydrocarbons which are gaseous at reservoir conditions but which condense to liquids
when the temperature and pressure falls below the dewpoint. Refer also to condensate.

Oil and gas produced by non-traditional sources, means or methods. This covers oil and
gas produced from shale formations and coal seams. The formation contains both the
hydrocarbon source and reservoir.

Gigajoule. A joule is a measure of heating value. 1 GJ is equal to 1 x 109 joules.

Vitrinite reflectance. It is a measure of light reflectance from organic matter in sediments. It
Is a fault block, generally greater in length than its width that has been downfaulted relative
provides an indication of the organic maturity of source rocks and whether petroleum may
to the adjacent blocks.
have been generated under heat and pressure and expulsed for potential capture and
preservation in reservoir traps.

The high pressure injection of “fraccing fluid”, primarily water, minor thickening agents and
suspended proppants (e.g. sand or aluminium oxide micro-pellets) into a well to create
cracks propagated in the subsurface rocks for a small radius around the wellbore. When the
pressure is released the solid proppants prevent the cracks from closing (i.e. hold the
fractures open) and allow petroleum to flow more freely into the wellbore as an aid to the
production recovery process.

Is the percentage of water occupying the pore space. For an aquifer the water saturation is
100%. For an oil or gas field a portion of the water is displaced and for example, SW of 25%
indicates 75% gas or oil within the porosity. Usually, reservoirs are water wet and therefore
there must be a layer of water coating the surface of the grains of the pore space. This is
the connate or irreducible water saturation.

A naturally occurring organic compound comprising hydrogen and carbon. Hydrocarbons
The price of West Texas Intermediate crude oil as at the delivery point at Cushing,
can be as simple as methane (CH4), but many are highly complex molecules and can occur
Oklahoma. It is used as a benchmark for oil pricing but has declined in importance in recent
as gases, liquids or solids.
years. Refer to Brent.

Is the energy dissipated as heat when an electric current of one ampere passes through a
resistance of one ohm for one second.

Kelly bushing. A hexagonal spline, the kelly drive slides though the kelly bushing and
permits a length of drill pipe to be drilled into the wellbore. When the kelly is fully
descended, the drillstring is lifted, the kelly disconnected and a new length of drillpipe
re-connected and the drilling process continues. The kelly bushing fits into the rotary
turntable fixed into the floor of the drill rig. Depth measurement is relative to the top of KB
(usually around one foot above the rig floor) but otherwise may be relative to the top of the
rotary table; RT.

Kilometres.

A square kilometre.

Liquefied natural gas.

Free on board (“FOB”) export price of LNG at the receiving terminal. The buyer is
responsible for shipping and transportation.

The measurement versus depth or time, or both, of one or more physical quantities in or
around a well. Logs are measured downhole and transmitted through a wireline for
recording at the surface. Common measurements include the background gamma radiation,
acoustic velocity, density, and resistance of rocks and the pressure, temperature and flow
rates of petroleum fluids.

Metres

1,000

Millions 106

Corporate directory

Vintage Energy Ltd

ABN 56 609 200 580

Chairman
Reg Nelson

Directors
Neil Gibbins | Managing Director
Nick Smart | Non-executive
Ian Howarth | Non-executive

Company Secretary
Simon Gray

Registered Office

58 King William Road

Goodwood SA 5034

+61 8 7477 7680

info@vintageenergy.com.au

www.vintageenergy.com.au

Share Registry

Automic Pty Ltd

Level 5

126 Phillip Street

Sydney NSW 2000

Contact:

P: 1300 288 664 (within Australia)

P: +61 (0) 2 9698 5414

www.automic.com.au

Auditor

Grant Thornton Audit Pty Ltd

Grant Thornton House

Level 3

170 Frome Street

Adelaide SA 5000

Vintage Energy Ltd Annual Report 2021