Annual Report
2022
ABN 56 609 200 580
Vintage Energy Ltd | Annual Report 2022
Vintage Energy Ltd | Annual Report 2022
2
Contents
Chairman’s message
Note from the Managing Director
Review of operations
Reserves and resources statement
Climate change
Directors’ report
Auditor’s independence declaration
Corporate governance statement
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Directors’ declaration
Independent auditor’s report
Schedule of tenements
Information pursuant to the listing requirements of the ASX
Glossary
Corporate directory
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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 reserve 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 2022
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Chairman’s message
I am pleased to present the Vintage Energy Ltd
(“Vintage”) annual report for the 2022 financial year
(“FY22”), the fourth since listing on the ASX.
Vintage’s position and market opportunity at 30 June
2022 is as anticipated in the prospectus for its initial
public offering in 2018.
At the time, the offering prospectus noted structural
change in the eastern Australia gas market, the
implications for gas demand and price and the fertile
ground created for reinvigoration of exploration in
locations suitable for accelerated commercialisation
and value creation. Vintage offered deep knowledge of
the Cooper / Eromanga basins, experience in
monetising discoveries in the region and an express
focus on rapidly building a revenue stream from which
further growth can be based.
I submit that the team’s deep knowledge has
demonstrably been fulfilled.
Your company’s efforts during FY22 brought it to the
point where this revenue stream is now imminent. The
previous two years saw Vintage identify, then acquire,
acreage with the necessary combination of geological
and commercial potential. The company’s exploration
and technical work yielded the Vali gas discovery and
its successful appraisal.
Vintage used this most recent year to complete the
commercial agreements and capital management to
underpin gas supply from Vali. The terms of the
company’s first Gas Sales Agreement (“GSA”), a long-
term agreement with AGL, enable production from Vali
to commence earlier, and with fewer capital demands,
than would ordinarily be expected. I note
approximately 84% of the field’s gas reserves remains
uncontracted, providing exposure to higher gas prices
and expectations since the AGL agreement was
signed.
The securing of debt finance, noteworthy for a
company of Vintage’s youth and scale, reduced the
capital contributions sought from shareholders. Strong
support from investors and shareholders in the
placement and heavily oversubscribed share purchase
plan was fundamental to the strength of the company’s
year-end position and much appreciated.
The financial and strategic value of the company’s
Cooper Basin gas asset base was reinforced by the
discovery of the Odin Gas Field. Odin is expected to
become a second source of gas supply and revenue.
Demand for new sources of gas supply in eastern
Australia is greater than ever and your board and
management are united in their resolve that the
potential value of the company’s hydrocarbon
resources and prospective acreage be realised, safely
and to the fullest extent.
The immediate focus is, of course, on taking Vali to
revenue generation and taking Odin to the point where
investment decisions and gas supply agreements can
be executed.
The broader opportunities for Vintage go well beyond
Vali and Odin. Gas demand and price expectations are
even stronger than envisaged when the company
listed. As they continue to evaluate the merits of the
company’s licences in the Cooper, Otway, Galilee and
Bonaparte basins, our technical team finds compelling
opportunities in each.
The financial year in question was not without its
vexations, albeit beyond our control.
Firstly, successive delays pushed back the
commencement of production and sales from Vali from
mid-year 2022 into the current financial year. The
overall delay is entirely attributable to global events,
beyond the control of the management team. Our
Managing Director addresses these in more detail in
his report. It is nonetheless frustrating for the company
awaiting its first revenue - and for shareholders.
However, barring further interventions, I believe that
delay will prove insignificant in comparison with the
long-term revenue expected from a field holding over
100 petajoules of sales gas (2P) with an estimated life
of around twenty years.
Vintage Energy Ltd | Annual Report 2022
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Secondly, although the company’s share price
outperformed most of its peers over the financial year,
we were certainly disappointed with the imputed market
value at 30 June 2022. I consider this to be a poor
reflection of the company’s intrinsic value. I urge
shareholders to consider the economic value of its
sales gas contract compared to its preponderantly
larger, uncontracted reserves. Add to this, the potential
of its other assets in the light of present and predicted
gas markets.
Both locally and globally, demand for gas is strong
(consider Europe this coming winter!). Confusingly,
broader market factors are at play, adversely affecting
the values of equities generally and the small
companies’ sector in particular. Clearly uncertainty and
low confidence levels are continuing to influence equity
market valuations.
Notwithstanding this, there is no doubt in my mind that
the underlying economic value of your company has
been increased, and the price and demand outlook for
its product have become more favourable since 1 July
2021. I fully expect that the progress of the company’s
initiatives, coupled with rising market confidence, will
result in improved value for shareholders in due course.
We look to the future with confidence, to add further
value and returns to you as shareholders.
In closing, I record my appreciation and thanks to my
fellow directors for their guidance and efforts during the
year, and my congratulations and encouragement to
Neil Gibbins and his team – and, of course, for the
support of shareholders, customers and financiers.
Reg Nelson
Chairman
Vintage Energy Ltd | Annual Report 2022
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Note from the Managing Director
The twelve months to 30 June 2022 was
transformational for Vintage. The year’s work put in
place almost all the elements required for the
company’s transformation from exploration company to
producer.
Gas reserves were increased by 200%. The company
secured its inaugural Gas Sales Agreement (“GSA”).
Capital reserves were increased through equity issues
and the company’s first debt facility. Cash reserves at
year-end increased 148% to $18.25 million. The
completed Vali gas wells are ready for pipeline
connection and production facilities fabrication is
underway for installation in the first half of the current
financial year.
As a result, Vintage begins FY23 knowing successful
execution of its remaining work program at Vali in the
coming months will realise its first revenue and
recurring cash flow.
Most importantly, this has been achieved without lost
time injuries or environmental incidents of reportable
significance. I commend the employees and
contractors who have enabled this outcome. “Zero-
incident” records are only maintained through the
planning and vigilance of every person who is involved
in the company’s operations. Thank you.
Subsurface and operations
The foundation for the company’s promising year-end
position is the Cooper Basin gas accumulations at Vali
and Odin, discovered in 2020 and 2021 respectively.
Technical work conducted in FY22 clarified the
pathway to commercialisation of both fields.
Vali
Results from the successful appraisal wells Vali-2 and
Vali-3, reported in the previous annual report, were
analysed and formed the basis of an update to
estimates of field reserves independently certified by
ERC Equipoise Pte Ltd (“ERCE”). Gross field proved
and probable reserves increased from 33.2 petajoules
(PJ) to 101.5 PJ. Vintage’s share rose from 17 PJ to
51 PJ. An upgrade of this scale, at a time of rising gas
prices, represents a substantial increase to the value of
the company’s resource base, the cash flows that can
be expected and Vintage’s significance as a gas
supplier to the Australian domestic market.
A better understanding of the field and its reservoirs is
required to determine its full potential and the most
value-optimising appraisal and development plan. In
particular, further potential is assessed through
appraisal of field perimeters and the gas pay from the
Epsilon and Toolachee formations. The drilling and
analysis required for this assessment would require
time, further capital expenditure and delay revenue
generation.
Accordingly, the company elected to pursue cash-
generating appraisal-by-production. In December, the
company committed to the completion and connection
of the three existing Vali wells for production and sale
into a long-term GSA. The agreement, discussed under
the heading ‘Commercial’ below, will enable Vintage to
understand and analyse the production characteristics
and performance of the reservoirs whilst generating
sales revenue. The information acquired will be a key
input to the preparation of a full field development plan
for Vali.
First gas sales from Vali are expected to occur prior to
the end of this calendar year. This is later than
originally anticipated, because the cascading flow-on
impacts of the Covid-19 pandemic on procurement,
supply chain, shipping availability and contractor
staffing levels have imposed repeated delays at every
phase of the project.
Our team worked assiduously to mitigate and work
around disruption and uncertainty; their efforts
prevented what could well have been a more extended
deferral. However, delays are unavoidable if capital
equipment is not available, or contractors are struggling
to satisfy required staffing levels.
Vintage Energy Ltd | Annual Report 2022
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Odin
Flow testing of the Odin-1 gas well during the year
confirmed the promise of the discovery, with a
stabilised flow rate of 6.5 million cubic feet per day from
the Epsilon and Toolachee formations. Contingent
resources of 36 Bcf (gross joint venture share; Vintage
share 17.5 Bcf) were independently certified by ERCE
prior to the flow test.
Further drilling is clearly required to confirm the extent
of the field, which is mapped to straddle the South
Australian, Queensland border and lie in both PRL 211
and ATP 2021. However, market interest in the
availability of gas from Odin has encouraged
acceleration of production and sales from the field in
advance of further drilling.
Work has commenced to bring the field to market at the
earliest opportunity, initially through completion of
concept engineering for connection of Odin-1 to the
Vali-Beckler pipeline. Subject to the outcome of this
and subsequent detailed engineering, procurement and
construction, it is possible production from Odin could
commence prior to the conclusion of calendar year
2023. Preparation of a commercial plan for marketing
gas from Odin has also commenced.
The location of the Odin field, and the accessibility of
the Vali-Beckler pipeline support economic and rapid
development. We expect Odin will become Vintage’s
second producing field in due course. We are also
mindful of the value creation to be expected from
reserve and resource additions confirmed through
drilling and have commenced planning the Odin-2
appraisal well.
Nangwarry
The release of an updated independent certification
has confirmed the Nangwarry resource to possess the
volume to support a significant long term food grade
carbon dioxide operation. The updated contingent
resource and further discussion of the pathway to
commercialisation of Nangwarry is included in the
‘review of operations’ section.
Other
The company’s portfolio includes exploration licences
in less mature stage of development in the Galilee,
Otway and Bonaparte basins.
As described in the accompanying ‘review of
operations’, these licences were subjected to lower
levels of activity in 2022. This is reflective of the time
required for procedural matters such as approvals,
applications for retention post-relinquishment and, in
the Victorian Otway, the recommencement of
exploration from a hiatus brought by government
moratorium.
The company expects activity levels in these licences,
all of which are considered highly attractive for gas
exploration and development, will pick up in 2023 –
2024. Like our Cooper Basin acreage, each possess
the ingredients for success; prospective acreage in
proven gas provinces, proximity to existing or planned
infrastructure and proximity to markets.
Reserves and resources
A detailed tabulation of the company’s proved and
probable reserves and resources is included in the
accompanying statement of this report. The company’s
2P reserves are currently restricted to those detailed for
the Vali Gas Field reported above. Contingent
resources (2P) rose from 46 PJ to 65 PJ with the
increase being attributable to the Odin Gas Field.
Commercial
The most significant sphere of activity for the company
during the year was the negotiation of a suite of
commercial agreements for the processing,
transportation and sale of gas from the Vali Gas Field.
Foremost is the GSA executed with AGL which will
enable revenue to be generated from the field whilst
the analysis and modelling required for a full field
development plan is conducted.
There are three noteworthy features of the agreement.
First, it provided for prepayments of $15 million to the
ATP 2021 Joint Venture. The prepayments were a key
element in the funding of the field capital works to bring
the field into production. I would like to acknowledge
AGL’s willingness to facilitate the entry of new gas
suppliers to the east coast market.
Second, the agreement for supply of an estimated 9 PJ
to 16 PJ in the period to end-2026, leaves
approximately 84% of the field’s 101.5 PJ 2P reserves
uncommitted and therefore available for future
contracting. This is a strong reserve position to hold
given the movement in gas prices and forecast shortfall
in future supply to east coast Australia.
Finally, the price terms of the agreement provide
upside exposure to the producers through a two-
tranche pricing structure, indexation and the scope for
a scheduled price renegotiation which preserves
exposure to market developments.
Financial
The year’s commercial and operational achievements
have been enabled by upgrades to our financial
resources through successful equity and debt capital
initiatives. Successful share placements and the
heavily oversubscribed share purchase plan raised
$12.0 million.
In May, the company completed its inaugural debt
facility, a 48-month, $10 million secured facility with
PURE Resources Fund to fund capital expenditure to
bring Vali into production. This facility was fully drawn
at year-end, at which point the company had net cash
of $8.2 million.
Support from both the equity and capital markets has
been encouraging, affirming the value of the company’s
assets.
Concluding comments
In summary, FY22 has been Vintage’s most significant
year to date: we have committed to the capital
expenditure to realise our first production and revenue
and secured the necessary underpinning commercial
and financial agreements.
Vintage Energy Ltd | Annual Report 2022
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This has brought considerable expansion in the
technical, managerial and governance demands on
what is still a small and young company. The new
demands have been met with a focus on capability and
efficient custodianship of shareholder resources,
through limited new appointments supported by
recourse to trusted and proven support contractors. At
30 June 2022, the company’s staffing stood at 15. I
would like to express my appreciation for the efforts for
all who have contributed to the year’s achievements
and Vintage’s promising outlook.
We are approaching FY23 with great anticipation and
resolve. The task of bringing Vali into production and
commencing revenue generation is to be completed.
We are working towards commitment to bring Odin into
production. We are doing the work to identify more gas
to bring to market from new resources we believe can
be found in our licences.
I would like to acknowledge the support and guidance
the board of directors has given the management team
during the year and thank shareholders, whose
confidence and support has been the most
fundamental element in Vintage’s successes for the
year.
Neil Gibbins
Managing Director
Vintage Energy Ltd | Annual Report 2022
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Review of operations
Description of operations
Vintage Energy’s operations involve exploration for,
appraisal and commercialisation of, oil and gas
accumulations onshore Australia. Activities are
focussed on proven petroleum basins offering high
success rates for drilling and where distance to market
and adjacency of existing infrastructure support rapid
commercialisation.
At year-end the company held interests in petroleum
exploration licences in:
-
-
-
-
the Cooper/Eromanga basins, South Australia
and Queensland
the Otway Basin, South Australia and Victoria
the Galilee Basin, Queensland; and
the Bonaparte Basin, Northern Territory.
Cooper/Eromanga Basins,
Queensland and South Australia
ATP 2021, Queensland
Vintage 50% and Operator, Metgasco Ltd 25% and
Bridgeport (Cooper Basin) Pty Ltd 25%
ATP 2021 is located in Queensland adjacent to the
Queensland-South Australia border. ATP 2021
contains the Vali gas field, discovered by Vali-1 ST1 in
January 2020 and successfully appraised by Vali-2 and
Vali-3.
Operations during the year included finalisation of the
Vali-3 appraisal well spudded in the previous year, the
certification of upgraded reserve estimates and the
commencement of a capital works program, the Vali
gas project, to enable supply of gas from the field to a
gas sales agreement executed with AGL.
The Vali-3 appraisal well identified gas pay in the
Patchawarra Formation, consistent with the prior two
wells, albeit with a material increase in reservoir sand
content. Lower deliverability gas pay was also
identified in the deeper Tirrawarra Sandstone and gas
pay was also interpreted in the Epsilon and Toolachee
formations.
Results of the appraisal wells were incorporated into an
updated independent certification of the field by ERC
Equipoise Pte Ltd (“ERCE”) and announced to the ASX
on 5 November 2021 and included in the Reserves and
Resources section of this report.
Two of the three wells were fracture stimulated and
completed during the year in preparation for connection
to the South Australian Cooper Basin gas gathering
network for processing at the Moomba gas facility.
At year-end, the work remaining for completion were
the fabrication and installation of a dual 13 km pipeline
and surface facilities, to be followed by commissioning.
The timing of both fabrication and installation has been
delayed by, and remains subject to, delivery of capital
equipment and contractor staffing availability. First gas
is expected from the field in the commissioning phase,
which is currently expected to commence from
December 2022.
Vintage Energy Ltd | Annual Report 2022
9
ATP 2021 also offers other drilling targets. Seismic
acquisition and interpretation are required to identify
optimal locations. Planning for seismic acquisition
commenced during the year and will continue.
ATP 2021 operations in FY23 will focus on safe and
timely completion of the site capital works to enable
supply into the AGL gas sales agreement, safe
production operations and appraisal of the Vali gas field
including optimisation of field operations for the
development of longer-term full field development plan.
PRL 211, South Australia
Vintage 50% and Operator, Metgasco Ltd 25% and
Bridgeport (Cooper Basin) Pty Ltd 25%
PRL 211 lies in the South Australian Cooper Basin,
with the licence’s eastern boundary near the ATP 2021
western boundary. The licence is in close proximity to
the South Australian Cooper Basins Joint Venture’s gas
production infrastructure at the Beckler, Bow and
Dullingari fields. The licence holds the western portion
of the Odin gas field, discovered by the PRL 211 joint
venture in 2021. The eastern portion of the field is
mapped to extend into ATP 2021, which has identical
joint venture composition to PRL 211.
Operations and developments in respect of PRL 211
during the year included independent certification of the
field’s Contingent Resources, flow testing of Odin-1 and
the redistribution of joint venture interests to match
those in the ATP 2021 permit.
ERCE independently certified 36.4 Bcf of gross 2C
Contingent Resources (Vintage Energy share 17 Bcf) 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 estimates and supporting detail are
included in the reserves and resources section of this
document.
Results of the Odin-1 flow test were announced 23
November 2021, reporting a first stage stable flow rate
of 6.5 million standard cubic feet per day at a flowing
wellhead pressure of 1,823 psi through a 28/64” fixed
choke. The well was then shut-in for 15 days, with the
second stage of the test recommencing to run a multi-
rate memory production log, which confirmed gas was
being contributed from each of the perforated Epsilon
and Toolachee formations.
Odin-1 was completed as a future gas producer as part
of the well completion campaign conducted with the
Vali field. The route of the Vali-Beckler pipeline
includes a deviation and tie-in point to facilitate
connection of Odin-1 for production via Moomba.
During the year, Beach Energy Ltd, previously a 15%
interest-holder, exited PRL 211 through sale of its stake
to the other interest holders in the licence in proportion
to their holdings. The transaction increased Vintage
Energy’s stake in the joint venture from 42.5% to 50.0%
and its share of Odin Contingent Resource to 19 PJ.
Subsequent to year-end, the PRL 211 joint venture
commenced work to bring the Odin gas discovery to
market at the earliest opportunity through concept
engineering for connection of the field to the Vali-
Beckler pipeline, as well as preparation of a
commercial plan for marketing of the field’s gas. It is
expected the concept engineering process and then
detailed engineering design work will be completed in
the current financial year and, subject to joint venture
approval, enable commencement of field works later in
the second half of the financial year.
Planning and preparation for the Odin-2 appraisal well
has commenced with a view to drilling the well on the
South Australian section of the field in FY24.
Vintage Energy Ltd | Annual Report 2022
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PELA 679 South Australia
Vintage 100% subject to land title agreement
PELA 679 is a petroleum exploration licence
application in the south-west of the South Australian
Cooper Basin that was won through competitive
bidding in 2019. On 30 June 2020, the company
announced its bid had been successful and subject to
establishment of an appropriate land access agreement
it would hold a 100% interest. Land access agreement
negotiations are currently underway.
Otway Basin, South Australia /
Victoria
PRL 249 (ex-PEL 155) South Australia
Vintage 50%, Otway Energy Pty Ltd 50% and
operator
PRL 249 contains the Nangwarry gas field, discovered
in January 2020. On testing, Nangwarry-1 produced
raw gas (~93% CO2, ~6% methane and ~1% nitrogen),
at flow rates of 10.5-10.8 million standard cubic feet per
day (“MMscfd”), measured through a 48/64” choke at a
flowing wellhead pressure of 1,415 psi over a 36-hour
period.
In July 2021 ERCE independently certified recoverable hydrocarbon and CO2 sales gas at Nangwarry as displayed in the
following table:
Nangwarry Field
CO2
Hydrocarbon
Pretty Hill Sandstone
Pretty Hill Sandstone
Low
9.0
Gross On-block Recoverable
Sales Gas (Bcf)
Best
25.9
High
64.4
Net On-block Recoverable
Sales Gas (Bcf)
12.9
32.2
4.5
Gross Gas Contingent
Resources (Bcf)
2C
1.6
Net Gas Contingent
Resources (Bcf)
0.8
3C
4.1
2.0
1C
0.5
0.3
Notes to the table above:
1.
2.
3.
ERCE recoverable and resource estimates effective 7 July 2021. These resources were first announced to the ASX 12 July 2021.
Gross volumes represent a 100% total of estimated recoverable volumes within PRL 249.
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.
Sales gas stream for Nangwarry is CO2 gas.
These are unrisked Contingent Resources that have not been risked for Chance of Development and are sub-classified as Development
Unclarified.
Hydrocarbon gas also includes minor volumes of nitrogen
4.
5.
6.
The Nangwarry Contingent Resource is assessed to
possess the volume, quality and reservoir properties for
an economic, significant and long-life food-grade CO2
production asset.
Food or industrial grade CO2 is a required input for a
wide range of sectors including hospitality, food and
beverage manufacture, protected horticulture,
chemical, cold storage, medical device and other
manufacturing. Analysis conducted indicates a
favourable market outlook for a stable, naturally
occurring CO2 resource as supply availability from
industrial sources diminishes. Vintage and Otway
Energy are seeking an outcome which will recognise
the economic value of the resource.
Realisation of this value will require processing of raw
gas and liquefaction for transport to market. As noted in
the 2021 Annual Report, Vintage is party to a non-
binding memorandum of understanding with Supagas
Pty Ltd, an Australian based distributor of gases for
domestic, industrial, medical and other applications.
Vintage is engaging with participants in the industrial
gas and infrastructure sectors to secure a collaborative
well-head-to-product delivery solution to enable
commercialisation.
Vintage Energy Ltd | Annual Report 2022
11
Galilee Basin, Queensland
ATPs 743, 744 & 1015 (“Deeps”)
PCAs 319, 320, 321, 322, 323 & 324
Vintage 30%, Comet Ridge Ltd (“Comet”) 70% and
operator
The Galilee Basin is a lightly explored gas province in
proximity to market and the proposed Galilee-
Moranbah pipeline. Vintage acquired a 30%
participation into the ‘Deeps’ sandstone reservoir
sequence of ATP 744, ATP 743 & ATP 1015 (all strata
commencing underneath the Permian coals (Betts
Creek Beds or Aramac coals) with the main target
being the Galilee Sandstone sequence).
PEP 171 Victoria
Vintage 25%, Somerton Energy Pty Ltd 75%
PEP 171 is located in the onshore Otway Basin and
effectively encompasses the entirety of the Victorian
section of the Penola Trough. While activity in the
permit has been suspended until recently pursuant to
Victorian Government moratorium, exploration in the
nearby South Australia section has confirmed the
prospectivity of the Penola Trough for conventionally
produced gas, most significantly at the fields held by
Beach Energy Ltd such as Haselgrove, Katnook,
Ladbroke Grove and Limestone Ridge.
The expiry of the Victorian onshore gas exploration
moratorium on 1 July 2021, was followed by new
regulations on 22 November 2021. All previous
existing oil and gas exploration permits of good
standing (which included PEP 171), were restarted
from 1 July 2021 for their first 5-year term.
Activity in the permit during the quarter was directed
towards recommencing exploration of the permit with
the objective of conducting a 3-D seismic survey in
FY24. Preliminary work commenced, including
interpretation of Victoria Gas Program data, integrating
it with existing technical studies and commencing the
updating of environmental management, stakeholder
and other plans.
The Deeps was tested in 2019 by Albany-1, which
recorded the first measurable gas flow from the Galilee
Basin flowing at 230,000 scfd from the top 10% of the
target reservoir without stimulation. Albany-2 was
drilled and hydraulically stimulated and Albany-1 was
side-tracked but not flow tested due to the cessation of
operations during the Covid pandemic.
As the ATPs were nearing the end of their twelfth year
the operator lodged applications with the Queensland
Government for award of Potential Commercial Area
(“PCA”) titles over the main identified Deeps prospects
and leads in these ATPs. After year-end, they were
advised that applications for 6 PCAs 319-324 had been
successful. The PCAs have a 15-year tenure.
ATPs 733 & 734 under the PCAs have been renewed
for twelve years, while ATP 1015 under the PCAs is
also due to be renewed later this year for twelve years.
Vintage has reviewed data from the Albany wells and
will assist the operator with the recommencement of
exploration activities over the PCAs.
Bonaparte Basin, Northern Territory
EP 126
Vintage 100%
Discussion with the Northern Territory Government
continued in relation to the declaration of approximately
50% of the permit, including the Cullen-1 well site, as a
’Reserved Area’. No regulated activities, other than
required maintenance, will be undertaken until the
issue is resolved.
Perth Basin, Western Australia
Cervantes Structure (L 14)
During the year the company participated in the
Cervantes-1 exploration well within the onshore Perth
Basin by way of a farmin agreement to fund 50% of the
cost of the well to earn a 30% stake in any discovery in
the targeted Permian reservoirs.
Cervantes-1 was spudded in March and subsequently
plugged and abandoned after failing to encounter
hydrocarbons. All potential reservoir sands were found
to be water-wet based on the lack of oil shows and the
interpretation of log data obtained while drilling.
Vintage’s farm-in agreement was specific to the
Cervantes prospect and the company has no further
obligations in respect of the permit following the
plugging of the well and rehabilitation of the site.
Vintage Energy Ltd | Annual Report 2022
12
Reserves and resources statement
During the period to 30 June 2022 and following the
successful appraisal of the Vali Gas Field through the
drilling of Vali-2 and Vali-3, Vintage was able to upgrade
its Cooper Basin 1P and 2P reserves. In addition, the
Odin-1 gas exploration well was drilled and this new field
gas discovery enabled a further booking of contingent
resources.
Reserves
At 30 June 2021, Vintage held a 2P reserve of 17 PJ on
the Vali Gas Field. Following the successful appraisal of
the field through the drilling of Vali-2 and Vali-3, this
reserve was upgraded to 51 PJ.
1P Reserves (PJ) Net to Vintage
Area
FY21
(PJ)
Acquisitions
&
Divestments
Contingent
Resources to
Reserves
Revisions FY22
(PJ)
Gas
(PJ)
Total
(PJ)
Developed Undeveloped
Cooper
Basin
Total
7
7
0
0
0
0
17
17
24
24
24
24
24
24
0
0
24
24
2P Reserves (PJ) Net to Vintage
Area
FY21
(PJ)
Acquisitions
&
Divestments
Contingent
Resources to
Reserves
Revisions FY22
(PJ)
Gas
(PJ)
Total
(PJ)
Developed Undeveloped
Cooper
Basin
17
Total
17
0
0
0
0
34
34
51
51
51
51
51
51
0
0
51
51
Notes to the Cooper Basin 1P and 2P reserve assessment:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Reserves estimates reported here are ERCE estimates, effective 31 October 2021.
Vintage is not aware of any new data or information that materially affects the reserves above and considers that all material assumptions
and technical parameters continue to apply and have not materially changed.
Reserves estimates have been made and classified in accordance with the Society of Petroleum Engineers (“SPE”) Petroleum Resources
Management System (“PRMS”) 2018.
Probabilistic methods have been used for individual sands and totals for each reservoir interval have been summed deterministically.
Company net entitlement reserves are based on the Vintage working interest share of 50% of the on block gross ATP 2021 Reserves as there
are no royalties payable.
Sales gas volumes are net of fuel and flare volumes.
All quantities are subject to rounding to one decimal place for clarity purposes.
A conversion factor of 1.0973 is applied to convert from billion standard cubic feet (Bscf) to petajoules (PJ).
These reserves were first reported by Vintage in an ASX release dated 1 November 2021.
Vintage Energy Ltd | Annual Report 2022
13
Contingent resources
2C Contingent Resource (PJ) Net to Vintage
Area
FY21
(PJ)
Acquisitions
&
Divestments
Contingent
Resources to
Reserves
Galilee
Basin
Cooper
Basin
Otway*
Basin
46
0
0
Total
46
0
2
0
2
0
0
0
0
Revisions
FY22 (PJ)
Gas (PJ)
0
17
0.8
18
46
19
0.8
66
46
19
0.8
66
*In the Otway Basin, the recoverable CO2 cannot be classified under PRMS as a contingent resource. For CO2 recoverable volumes see
the Operations section on page 10
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.
4.
Probabilistic methods were used.
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.
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.
The chance of development is classified as high, as several commercialisation possibilities exist for future gas supply export.
5.
6.
Notes on Cooper Basin contingent resource assessment:
1. Gross contingent resources represent 100% total of estimated recoverable volumes within PRL 211 and ATP 2021.
2. Working interest contingent resources represent Vintage’s share of the gross contingent resources based on its working interest in PRL 211,
3.
which is 50%, and ATP 2021, which is 50%.
These are unrisked contingent resources that have not been risked for Chance of Development and are sub-classified as Development
Unclarified.
Contingent resources volumes shown have had shrinkage applied to account for inerts removal and include hydrocarbon gas only.
4.
5. No allowance for fuel and flare volumes has been made.
6.
7.
8.
9.
10. These Contingent resources were first disclosed in a release to the ASX on 16 September 2021.
Resources estimates have been made and classified in accordance with the Petroleum Resources Management System 2018 (“PRMS”).
Probabilistic methods have been used for individual sands and totals for each reservoir interval have been summed deterministically.
A conversion factor of 1.09 is applied to convert from billion standard cubic feet (Bscf) to petajoules (PJ).
Contingent resources certified by ERCE are as at 14 September 2021.
Notes on Otway Basin Contingent Resource assessment:
1. Nangwarry hydrocarbon resources have been sub-classified as “Development Unclarified” under the PRMS by ERCE and are assigned as
Consumed in Operations, that is used to fuel a CO2 plant.
The key contingencies are a final investment decision on development, committing to a CO2 sales agreement, any other necessary commercial
arrangements, and obtaining the usual regulatory approvals.
Volumes reported are unrisked in the sense that no adjustment has been for the risk that the project may not be developed in the form
envisaged or may not go ahead at all.
Probablistic totals have been estimated using the Monte Carlo method.
Volumes represent Vintage’s 50% working interest in PRL 249.
2.
3.
4.
5.
Vintage Energy Ltd | Annual Report 2022
14
The reserves and resources reported are categorised as required by ASX listing rules for this report. Please see below,
for shareholder convenience the same reserves and resources attributed to their respective fields as of 30 June 2022:
Vali Gas Field
Gross ATP 2021 Vali Gas Field Reserves
1P
47.5
2P
101.0
Net (50% equity) ATP 2021 Vali Gas Field Reserves
1P
23.7
2P
50.5
Odin Gas Field
Gross Odin Gas Field Contingent Resources (PJ)
1C
20.2
2C
39.7
Net (50% equity) Odin Gas Field Contingent Resources (PJ)
1C
5.7
4.0
9.7
2C
11.1
8.0
19.1
Albany Gas Field
Gross Albany Gas Field Contingent Resources (PJ)
1C
57
2C
153
Net (30% equity) Albany Gas Field Contingent Resources (PJ)
1C
17
2C
46
Sales Gas (PJ)
Sales Gas (PJ)
Total
PRL 211
ATP 2021
Total
Total
Total
Sales Gas (PJ)
1C
0.3
2C
0.8
Net (50% equity) Nangwarry C02 Field, Hydrocarbon Resources
Nangwarry C02 Field
3P
209.8
3P
104.9
3C
78.2
3C
21.9
15.6
36.5
3C
417
3C
125
3C
2.0
Vintage Energy Ltd | Annual Report 2022
15
Governance statement
The reserves and the contingent resources contained
in this reserves statement have been independently
assessed. New data from the Vali Gas Field will be
reviewed and assessed during FY23.
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 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 and Odin contingent
resource assessment
ERCE is an independent consultancy specialising in
petroleum reservoir evaluation. Except for the
provision of professional services on a fee basis,
ERCE has no commercial arrangement with any other
person or company involved in the interests that are
the subject of this contingent resources evaluation.
The work has been supervised by Mr Adam Becis,
Principal Reservoir Engineer of ERCE’s Asia Pacific
office who has over 14 years of experience. He is a
member of the Society of Petroleum Engineers and a
member of the Society of Petroleum Evaluation
Engineers.
Vintage Energy Ltd | Annual Report 2022
16
Climate change
The Vintage Board has released a policy on climate
change which recognises that the company has a role
to play in reducing carbon emissions.
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.
The Task Force on Climate-Related Financial
Disclosures (TCFD) recommends climate-related
financial disclosure under the following categories:
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.
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.
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.
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 it 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 a
hotter global climate to the Vintage business
could include increased number of extreme
heat days that field workers are exposed to
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 area surrounding the
depleted Caroline CO2 field.
•
•
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 coming financial years and
reviewed regularly.
Vintage Energy Ltd | Annual Report 2022
17
Directors’ report
The Directors of Vintage Energy Limited (“Vintage” or
“the Company”) present their report together with the
financial statements of the Company for the year ended
30 June 2022 and the independent audit report
thereon.
Director details
The following persons were Directors of Vintage during
or since the end of the financial year:
Reg Nelson | Chairman
in
Reg Nelson (independent Director) has a long and
distinguished career
the Australian petroleum
industry and is widely respected within commercial and
government circles for his successful and innovative
leadership. As Managing Director of ASX-listed Beach
Energy Limited (“Beach”), until retiring from the
position in 2015, he led the company to a position as
one of Australia’s top mid-tier oil and gas companies.
He was formerly Director of Mineral Development for
the State of South Australia, a Director of the Australian
Petroleum Production and Exploration Association
(“APPEA”) for eight years and was APPEA Chairman
from 2004 to 2006. He was a Director of petroleum
exploration company FAR Limited and has been a
Director of many other Australian Securities Exchange
(“ASX”) listed companies. He was awarded the Reg
Sprigg Medal by APPEA in 2009 in recognition of his
industry contribution.
Other directorships – Nil.
Previous directorships – FAR Limited (from May 2015
to June 2021).
Committee memberships - Audit and risk, Nomination
committee and Remuneration committee.
Interest in shares and options
Ordinary shares
Options
16,747,637
2,000,000
Neil Gibbins | Managing Director
Neil Gibbins has over 35 years of technical and
leadership experience in the petroleum industry in a
wide variety of regions in Australia and internationally
and has been involved in many successful exploration,
development and corporate acquisition projects. Neil
was employed at both Esso Australia and Santos
Limited,
in
initially as a geophysicist and
supervisory roles. He moved to Beach in 1997, initially
as Chief Geophysicist, and then as Exploration
Manager in 2005, and Chief Operating Officer in 2012.
Neil was acting CEO in 2015 and led Beach during its
merger with DrillSearch Energy Limited in 2016. He is
a member of PESA, SEG, SPE and ASEG.
later
Other directorships – Nil.
Interest in shares and options
Ordinary shares
14,819,890
Employee incentive rights
4,036,000
Nicholas (Nick) Smart | Non-Executive Director
Nick Smart (independent Director) 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
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.
listed natural
Other directorships – Nil.
Committee memberships – Nomination committee and
Remuneration committee and Chair of Audit and risk.
Interest in shares and options
Ordinary shares
Options
6,236,821
2,000,000
Vintage Energy Ltd | Annual Report 2022
18
Ian Howarth | Non-Executive Director
Ian Howarth (independent Director) 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
sector
consultancies. Clients included APPEA and several
listed companies
His
expertise lies in marketing and assisting in capital
raising. Ian has a certificate in financial markets from
Securities Institute of Australia.
including Shell Australia.
resources
leading
Other directorships – Nil.
Committee memberships - Audit and risk, Chair of the
Nomination committee and Remuneration committee.
Interest in shares and options
Ordinary shares
Options
13,986,340
2,000,000
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 Chairman
and Chief Financial Officer of minerals exploration
company Havilah Resources Limited and Company
Secretary of several other ASX-listed companies.
Principal activities
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 $7,978,704
for the financial year ended 30 June 2022 (2021
$2,368,480). Efforts over the financial year focused on
building a robust portfolio of assets and the execution
of work programs associated with appraisal of gas
discoveries in the Cooper Basin.
The details of these assets are described in the
operations report in this Annual Report.
Dividends
No dividends were paid or proposed during the year.
Vintage Energy Ltd | Annual Report 2022
19
Significant changes in the state of affairs
On 23 March 2022, the Company executed its first Gas Sales Agreement (“GSA”). The agreement, with AGL
Wholesale Gas Limited (“AGL”) provides for the sale of gas produced from the Vali field from start-up through to the
end of CY2026. Vintage has a 50% interest in the Vali Gas Field.
On 14 June 2022, the Company announced completion of a $10 million debt facility (“Facility”) with the PURE
Resources Fund announced 25 November 2021. Funds available under the Facility’s two $5 million tranches have
been drawn down. The Facility is secured and has a 48-month term.
Subsequent events
On 1 July 2022, 1,729,700 short term incentive performance rights held by the Managing Director lapsed, as the
performance conditions were not met.
On 1 August 2022, 549,200 short term incentive performance rights held by management were exercised and ordinary
shares issued upon performance conditions being met.
On 1 August 2022, 9,070,200 Class STI performance rights were granted to management, with a fair value of $435,370
on the following terms:
• being employed by the Company at 1 July 2023, Odin gas contract in place and construction started on Odin-1
connection by 1 July 2023.
On 12 September 2022, the Company announced that Galilee Basin Joint Venture permits ATP 743 and 744 were
renewed by the Queensland Government for a further term of 12 years. Six Potential Commercial Areas (PCAs), totaling
approximately 4,700km2, have been awarded for a term of 15 years within the ATPs.
On 20 September 2022, the Company announced that first gas is now expected in December 2022.
Likely developments, business strategies and prospects
The Company will continue to develop its existing suite of exploration and evaluation assets and will work to identify
other assets and corporate opportunities that will grow the Company and enhance shareholder value.
Directors’ meetings
The number of meetings of Directors (including meetings of Committees of Directors) held during the year and the
number of meetings attended by each Director is as follows:
Board
Meetings
Audit and Risk
Remuneration
Committee
Committee
Nomination
Committee
A
12
12
12
12
B
12
12
12
12
A
3
3
3
3
B
3
3
3
3
A
2
2
2
2
B
2
2
2
2
A
1
1
1
1
B
1
1
1
1
Board Member
Reg Nelson
Ian Howarth
Neil Gibbins
Nick Smart
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
During the year, 6,000,000 share options were issued to Directors, excluding the Managing Director, with an exercise
price of $0.133 per option and expiring 3 years from the date of issue (29 November 2024). The options were issued
subsequent to approval at the Company AGM held 29 November 2021.
Vintage Energy Ltd | Annual Report 2022
20
Performance rights granted to management and Directors during the year
In total, 19,535,500 performance rights were issued to management on 2 August 2021, on the following terms:
• Short term incentives – 7,814,900 performance rights – continued employment with Vintage and first gas to market
by 30 June 2022. In April 2022, the Board extended these performance conditions to 1 October 2022.
• Long term incentives 1 – 5,860,300 performance rights – continued employment with Vintage at 30 June 2024 and
CO2 production commenced or Nangwarry project monetised prior to 30 June 2024.
• Long term incentives 2 – 5,860,300 performance rights – continued employed by Vintage at 30 June 2024 and the
Company reach a market capitalisation of $100million prior to 30 June 2024.
A further 5,765,700 performance rights were issued to the Managing Director on 30 November 2021, as approved at
the Company AGM held 29 November 2021:
• Short term incentives – 1,729,700 performance rights – continued employment with Vintage and first gas to market
by 30 June 2022.
• Long term incentives 1 – 2,018,000 performance rights – continued employed with Vintage at 30 June 2024 and
CO2 production commenced or Nangwarry project monetised prior to 30 June 2024.
• Long term incentives 2 – 2,018,000 performance rights – continued employed by Vintage at 30 June 2024 and the
Company reach a market capitalisation of $100million prior to 30 June 2024.
During the year, 362,500 performance rights relating to management were exercised into ordinary shares on
satisfaction of performance conditions. A further 362,500 performance rights relating to management lapsed, having
not met performance conditions.
Subsequent to the end of the financial year, as described above, 9,070,200 short term incentive rights were issued to
management, 549,200 shares were issued on the exercise of Class STI performance rights upon satisfaction of
performance conditions and 1,729,700 short-term incentive rights relating to the Managing Director lapsed for failing to
meet performance conditions.
Unissued shares under option
As mentioned above, 6,000,000 options were issued to Directors, excluding the Managing Director, with an exercise
price of $0.133 per option, expiring 3 years from issue (29 November 2024). The options were approved at the
Company AGM held 29 November 2021.
6,500,000 options on issue from prior periods expired on 17 September 2021.
Options do 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.
Performance rights on issue
Performance rights to ordinary shares at the date of this report are:
• 4,036,000 performance rights held by the Managing Director; and
• 28,056,500 performance rights held by management.
Environmental legislation
The Company’s oil and gas operations are subject to environmental regulation under the legislation of the respective
State, Territory and Federal Government jurisdictions in which it operates. Approvals, licenses, hearings and other
regulatory requirements are performed by the operators of each permit or lease on behalf of joint operations in which
the Company participates. The Company is potentially liable for any environmental damage from its activities, the extent
of which cannot presently be quantified and would in any event be reduced by insurance carried by the Company or
operator. The Company applies the oil and gas experience of its personnel to develop strategies to identify and mitigate
environmental risks. Compliance by operators with environmental regulations is governed by the terms of respective
joint operating agreements and is otherwise conducted using oil industry best practices. Management actively monitors
Vintage Energy Ltd | Annual Report 2022
21
compliance with regulations and as at the date of this report is not aware of any material breaches in respect of these
regulations.
Remuneration report (audited)
Principles used to determine the nature and amount or remuneration
The remuneration policy of Vintage has been designed to align key management personnel objectives with shareholder
and business objectives by providing a fixed remuneration component and offering other incentives based on
performance in achieving key objectives as approved by the Board. The Board of Vintage believes the remuneration
policy to be appropriate and effective in its ability to attract and retain the best key management personnel to run and
manage the Company, as well as create goal congruence between Directors, executives and shareholders.
The Company’s policy for determining the nature and amounts of emoluments of Board members and other key
management personnel of the Company is as follows:
Remuneration and nomination
The remuneration committee oversees remuneration matters and sets remuneration policy, fees and remuneration
packages for non-executive Directors and senior executives. The objectives and responsibilities of the remuneration
committee are documented in the charter approved by the Board. A copy of the charter is available on the Company’s
website.
The Company’s Constitution specifies that the total amount of remuneration of non-executive Directors shall be fixed
from time to time by a general meeting. The current maximum aggregate remuneration of non-executive Directors has
been set at $800,000 per annum. Directors may apportion any amount up to this maximum amount amongst the non-
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.
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 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.
The remuneration structure and packages offered to executives are summarised below:
Fixed remuneration
• Short-term incentive - The Company provides equity grants at the discretion of the Board based on the
achievement of key performance indicators. The Company may grant retention options or rights as considered
appropriate as a short-term incentive.
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.
At the Company’s Annual General Meeting, held 29 November 2021, 96.7% of eligible votes were cast in favour of the
remuneration report in the 2021 Annual Report of the Company being adopted.
Remuneration consultants
The Company did not use any remuneration consultants during the year.
Vintage Energy Ltd | Annual Report 2022
22
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/Chief Financial Officer.
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
10 February 2017
9 November 2015
9 November 2015
9 November 2015
•
•
•
•
•
Position
Chairman
Managing Director
Non-Executive Director
Non-Executive Director
Company Secretary and Chief Financial Officer
Remuneration summary Directors and other key management personnel
2022
Salary
& fees (3)
Share based
remuneration
Super-
annuation
Termination
benefits
Total
Share based
percentage
of total
Performance
related
percentage
Non-executives
Reg Nelson
Ian Howarth
Nick Smart
Executives
71,283
47,522
47,522
56,594 (2)
56,594 (2)
56,594 (2)
Neil Gibbins
343,782
120,732 (1)
Simon Gray
105,016
61,756 (1)
615,125
352,270
7,128
4,752
4,752
29,940
8,742
55,314
-
-
-
-
-
-
135,005
108,868
108,868
494,454
175,514
1,022,709
42%
52%
52%
24%
35%
42%
52%
52%
24%
35%
2021
Salary
& fees (3)
Share based
remuneration
Super-
annuation
Termination
benefits
Total
Share based
percentage
of total
Performance
related
percentage
Non-executives
Reg Nelson
Ian Howarth
Nick Smart
Executives
69,179
46,120
46,120
-
-
-
Neil Gibbins
319,549
105,389 (1)
Simon Gray
93,464
-
6,572
4,381
4,381
27,602
8,060
574,432
105,389
50,996
-
-
-
-
-
-
75,751 0%
50,501 0%
50,501 0%
452,540 23%
101,524 0%
730,817
-
-
-
23%
-
Notes to the two tables above:
(1) These amounts are calculated in accordance with accounting standards and represent the amortisation of accounting fair values of
performance rights that have been granted to key management personnel in this or prior financial years. The fair value of performance rights
have been measured using a generally accepted valuation model. The fair values are then amortised over the entire vesting period of the
equity instruments. Total remuneration shown in ‘total’ therefore includes a portion of the fair value of unvested equity compensation during
the year. The amount included as remuneration is not related to or indicative of the benefit (if any) that individuals may ultimately realise
should these equity instruments vest and be exercised. For details of the performance rights that were issued, refer to the ‘Performance
rights granted to management and Directors during the year’ section of the Directors’ Report above. Extension of rights was approved at a
Board meeting on 27 April 2022. The fair value of the equity instrument at date of issue was $45,459 and at date of extension was $50,510.
(2) Relates to options issued throughout the year, as outlined in the Share Based Payment section below.
(3) Executive salaries include annual leave entitlements.
Vintage Energy Ltd | Annual Report 2022
23
Service agreements
Remuneration and other terms of employment for Executive Directors and other key management personnel are
formalised in a Service agreement.
Details of agreements for Executive Directors and other key management personnel is set out below:
Mr. Neil Gibbins, Managing Director
Base Salary $411,668 (full time equivalent) inclusive of superannuation. The position is a 0.8 full time equivalent.
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.
The Company and Mr. Gibbins may also terminate the Agreement on three months’ written notice.
Mr. Simon Gray, Company Secretary
Base Salary $240,413 (full time equivalent) inclusive of superannuation. The position is a 0.4 full time equivalent.
Share based remuneration
Upon listing on the ASX, the Company had 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. Options carry no voting or dividend
rights. These options expired on 17 September 2021.
During the year ended 30 June 2022, 6,000,000 options were issued to Directors with an exercise price of $0.133 per
option, expiring 3 years from issue (29 November 2024). The options were approved at the Company AGM held
29 November 2021.
Performance rights issued under the employee incentive plan and to the Managing Director have been issued under
the following general performance conditions:
Class STI performance rights - Being employed by the Company at end of FY22, acceptable individual performance
to end of FY22 and the Company supplying first gas to market by end of FY22.
Class LT1 performance rights - Being employed by Vintage at end of FY24 and CO2 production commenced, or
Nangwarry project monetised prior to end FY24.
Class LT2 performance rights - Being employed by Vintage at end of FY24 and market cap of $100million reached
prior to end FY24.
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, on the following terms:
• Short term incentives – performance rights – continued employment with Vintage and first gas to market by 30
•
•
June 2022.
Long term incentives 1 – performance rights – continued employed with Vintage at 30 June 2024 and CO2
production commenced or Nangwarry project monetised prior to 30 June 2024.
Long term incentives 2 – performance rights – continued employed by Vintage at 30 June 2024 and the Company
reach a market capitalisation of $100million prior to 30 June 2024.
Vintage Energy Ltd | Annual Report 2022
24
Employee
Class
Number of
rights granted
Grant Date
$ Value at
Grant date
Number
converted
Number
lapsed
Neil Gibbins
Neil Gibbins
Neil Gibbins
Simon Gray
Simon Gray
Simon Gray
STI
LT1
LT2
STI
LT1
LT2
1,729,700
30 November 2021
121,944
2,018,000
30 November 2021
113,815
2,018,000
30 November 2021
141,260
1,010,200
2 August 2021
1,178,500
2 August 2021
1,178,500
2 August 2021
45,459
42,426
9,428
-
-
-
-
-
-
-
-
-
-
-
-
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
Simon Gray
Balance
1 July 2021
Rights
Exercised
Options
Exercised
Net Change
Other
Balance
30 June 2022
15,744,696
14,415,252
13,633,399
6,177,998
6,077,905
-
-
-
-
-
-
-
-
-
-
1,002,941 (i)
352,941 (i)
352,941 (i)
58,823 (i)
58,822 (i)
16,747,637
14,768,193
13,986,340
6,236,821
6,136,727
Notes to the table above:
(i)
Shares were acquired during the year as part of the capital raise announced on 13 December 2021.
The number of options held by each Director and other key management personnel of the Company, including their
personal related parties are detailed below. All previously held options lapsed during the year.
Name
Reg Nelson
Neil Gibbins
Ian Howarth
Nick Smart
Simon Gray
Options
granted
Balance
30 June 2022
2,000,000
2,000,000
-
2,000,000
2,000,000
-
-
2,000,000
2,000,000
-
The number of performance rights held during the financial year by each Director and other key management personnel
of the Company, including their personal related parties are detailed below.
Name
Reg Nelson
Neil Gibbins
Ian Howarth
Nick Smart
Ian Northcott
Simon Gray
Balance
1 July 2021
1,320,941 (i)
Rights
lapsed
Rights
converted
(1,320,941)
1,320,941 (i)
(1,320,941)
1320,941 (i)
(1,320,941)
1,320,941 (i)
1,320,941 (i)
(1,320,941)
(1,320,941)
1,320,941 (i)
(1,320,941)
Rights
granted
-
Balance
30 June 2022
-
5,765,700
5,765,700
-
-
-
-
-
-
3,367,200
3,367,200
-
-
-
-
-
-
(i)
Founders’ Rights all lapsed 17 September 2021.
Shares issued on exercise of remuneration options
No shares were issued to Directors or key management as a result of the exercise of options during the financial year.
Vintage Energy Ltd | Annual Report 2022
25
Employee incentive plan
The shareholders of the Company approved an employee incentive plan for employees at the Annual General Meeting
held on 29 November 2021. Performance rights issued pursuant to the plan to eligible employees other than Directors
and key management personnel as at 30 June 2022 are detailed at Note 16 in the Notes to the Financial Statements.
Transactions with key management personnel
An affiliate of the Managing Director is employed with the Company in a technical exploration position, with
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
transactions with other key management personnel.
END OF REMUNERATION REPORT
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.
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.
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 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.
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.
Vintage Energy Ltd | Annual Report 2022
26
Details of the amounts paid to the auditors of the Company, Grant Thornton Audit Pty Ltd, and its related practices for
audit and non-audit services provided during the year are set out in Note 23 in the Notes to the Financial Statements.
A copy of the auditor’s independence declaration as required under s.307C of the Corporations Act 2001 is included
on the next page of this financial report and forms part of this Directors’ report.
Signed in accordance with a resolution of the Directors.
Reg Nelson
Chairman
23 September 2022
Vintage Energy Ltd | Annual Report 2022
27
Auditor’s independence declaration
Grant Thornton Audit Pty Ltd
Grant Thornton House
Level 3
170 Frome Street
Adelaide SA 5000
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
To the Directors of Vintage Energy Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
of Vintage Energy Limited for the year ended 30 June 2022, I declare that, to the best of my knowledge and
belief, there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
GRANT THORNTON AUDIT PTY LTD
Chartered Accountants
J L Humphrey
Partner – Audit & Assurance
Adelaide, 23 September 2022
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘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 Limited 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
ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation.
Vintage Energy Ltd | Annual Report 2022
28
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 2022 was approved and dated
by the Board on 23 September 2022. The corporate governance statement is available on Vintage’s website at
https://www.vintageenergy.com.au/governance-policies.html
Vintage Energy Ltd | Annual Report 2022
29
Statement of profit or loss and other
comprehensive income
For year ended 30 June 2022
Notes
Interest income
Joint operations recoveries
Other income
COVID-19 cash flow boost receipts
Corporate recoveries
Depreciation expense
Exploration expense
Director remuneration expense
Employee benefits expense
Impairment expense
Financing costs
Other expenses
(Loss) before income tax
Income tax benefit
(Loss) for the year
Other comprehensive income
9
5
5
10
5
5
30 June
2022
$
1,016
2,193,448
46,897
-
2,241,361
-
(241,820)
(9,000)
(847,196)
(3,188,135)
(4,173,827)
(116,461)
(1,643,626)
(7,978,704)
-
30 June
2021
$
3,430
1,530,877
39,440
100,000
1,673,747
(39,440)
(238,367)
(70,377)
(667,649)
(1,874,790)
-
-
(1,151,604)
(2,368,480)
-
(7,978,704)
(2,368,480)
-
-
Total comprehensive income (loss) attributable to owners of the
(7,978,704)
(2,368,480)
company for the year
Earnings per share
Basic (loss) per share from continuing operations (dollars)
Diluted (loss) per share from continuing operations (dollars)
18
18
(0.0117)
(0.0044)
(0.0117)
(0.0044)
This statement should be read in conjunction with the notes to the financial statements
Vintage Energy Ltd | Annual Report 2022
30
Statement of financial position
As at 30 June 2022
Notes
Current Assets
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
Contract liabilities
Other financial liabilities
Total current liabilities
Non-Current Liabilities
Provisions
Contract liabilities
Other financial liabilities
Total non-current liabilities
Total Liabilities
Net Assets
Equity
Share capital
Reserves
Accumulated (losses)
Total Equity
7
8
9
10
11
12
13
14
12
13
14
15
30 June
2022
$
18,711,960
2,440,799
21,152,759
406,055
49,167,004
49,573,059
70,725,818
3,498,535
681,249
974,000
217,414
5,371,198
1,149,040
6,526,000
7,070,239
14,745,279
20,116,477
50,609,341
63,442,004
3,370,284
(16,202,947)
50,609,341
30 June
2021
$
7,369,036
706,079
8,075,115
426,004
37,161,165
37,587,169
45,662,284
166,024
365,033
-
160,717
691,774
925,000
-
219,627
1,144,627
1,836,401
43,825,883
51,907,858
480,705
(8,562,680)
43,825,883
This statement should be read in conjunction with the notes to the financial statements
Vintage Energy Ltd | Annual Report 2022
31
Statement of changes in equity
For the year ended 30 June 2022
Notes
Share
capital
Accumulated
losses
$
$
Share
based
payments
reserve
$
Total equity
$
Balance at 1 July 2020
36,891,576
(6,432,653)
867,181
31,326,104
(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
-
-
-
(2,368,480)
-
(2,368,480)
-
-
-
-
-
(338,385)
190,362
-
-
-
-
15
15
15
385,000
15,170,167
338,385
-
-
238,453
(238,453)
15
(877,270)
-
-
51,907,858
(8,562,680)
480,705
(2,368,480)
-
(2,368,480)
385,000
15,170,167
-
190,362
-
(877,270)
43,825,883
Balance at 1 July 2021
51,907,858
(8,562,680)
480,705
43,825,883
(Loss) for the year
Other comprehensive income
Total comprehensive (loss) for the year
-
-
-
(7,978,704)
-
(7,978,704)
Total transactions with owners
Issue of ordinary shares at $0.085
Issue of ordinary shares on conversion of rights
Fair value of warrants issued
Fair value of performance rights and options issued
15
15
14
16
11,942,489
43,500
-
-
-
-
-
-
-
-
-
-
(43,500)
2,647,059
742,709
Fair value of options and performance rights lapsed
118,251
338,438
(456,689)
Transaction costs
Balance at 30 June 2022
15
(570,094)
-
-
63,442,004
(16,202,947)
3,370,284
(7,978,704)
-
(7,978,704)
11,942,489
-
2,647,059
742,709
-
(570,094)
50,609,341
This statement should be read in conjunction with the notes to the financial statements
Vintage Energy Ltd | Annual Report 2022
32
Statement of cash flows
For the year ended 30 June 2022
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Payments for exploration and evaluation expensed
Interest received
Government grants and tax incentives
Other income – recoveries
Notes
13
30 June
2022
$
8,250,000
(4,780,993)
-
1,016
-
46,897
30 June
2021
$
-
(3,382,608)
(70,376)
3,430
1,806,197
39,440
Net cash from/ (used in) operating activities
24
3,516,920
(1,603,917)
Cash flows from investing activities
Payments for exploration and evaluation assets
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
Proceeds from borrowings
Transaction costs related to loans and borrowings
Payment of the principal portion of lease liabilities
Net cash from financing activities
(12,806,072)
(8,699,804)
(25,257)
(34,025)
(12,831,329)
(8,733,829)
11,942,489
(570,094)
10,000,000
(496,519)
(218,543)
20,657,333
15,317,167
(877,270)
-
-
(176,354)
14,263,543
Net change in cash and cash equivalents
11,342,924
3,925,797
Cash and cash equivalents at the beginning of year
Cash and cash equivalents at end of year
7
7,369,036
18,711,960
3,443,239
7,369,036
This statement should be read in conjunction with the notes to the financial statements
Vintage Energy Ltd | Annual Report 2022
33
Notes to the financial statements
1 Nature of operations
Vintage Energy Limited 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 2022 were approved and authorised for issue by the Board of Directors on 23 September 2022.
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.
Income taxes
4.4
Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in other
comprehensive income or directly in equity.
Current income tax assets and/or liabilities comprise those obligations to, or claims from, the Australian Taxation Office
(ATO) and other fiscal authorities relating to the current or prior reporting periods that are unpaid at the reporting date.
Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current
tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts
of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill or
on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or
accounting profit. Deferred tax on temporary differences associated with investments in subsidiaries and joint ventures is
Vintage Energy Ltd | Annual Report 2022
34
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
Vintage Energy Ltd | Annual Report 2022
35
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 2022
36
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:
i.
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.
Vintage Energy Ltd | Annual Report 2022
37
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. The refundable research and development tax incentive is accounted
for as a government grant.
Vintage Energy Ltd | Annual Report 2022
38
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 Revenue recognition
No revenue from contracts with customers has been recognised by the Company during the year ended 30 June 2022.
Applying Accounting Standard AASB 15 Revenue from Contracts with Customers, revenue from contracts with customers
is recognised in the income statement when or as the Company transfers control of goods or services to a customer at the
amount to which the Company expects to be entitled. If the consideration promised includes a variable amount, the
Company estimates the amount of consideration to which it will be entitled.
Vintage Energy Ltd | Annual Report 2022
39
Revenue from the sale of hydrocarbons
Revenue from the sale of hydrocarbons is recognised based on volumes sold under contracts with customers, at the point
in time where performance obligations are considered met. Generally, regarding the sale of hydrocarbon products, the
performance obligation will be met when the product is delivered to the specified measurement point (gas) or point of
loading/unloading (liquids).
Contract Liabilities
A contract liability is recorded for obligations under sales contracts to deliver natural gas in future periods for which payment
has already been received. The Company applies the practical expedient in paragraph 121 of AASB 15 Revenue from
Contracts with Customers and does not disclose information on the transaction price allocated to performance obligations
that are unsatisfied.
4.21 Going concern
The 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 2022 the company recognised a loss of $7,978,704 had net cash outflows from operating
and investing activities of $9,314,409 and had accumulated losses of $16,202,947 as at 30 June 2022. 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:
• Commencement of commercial gas production from ATP 2021 (Vali) and PRL 211 (Odin);
• 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.
4.22 Comparative figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation
for the current financial year.
4.23 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.
Vintage Energy Ltd | Annual Report 2022
40
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.
4.24 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 2022
41
5
Loss for the year
Loss for the year from continuing operations includes the following expenses:
Director remuneration expense
Director salary and fees
Director post-employment benefits
Share based payments
Employees benefit expense
30 June
2022
$
(510,109)
(46,572)
(290,515)
(847,196)
30 June
2021
$
(519,324)
(42,936)
(105,389)
(667,649)
Short-term employee benefits – salaries and fees
(1,937,763)
(1,482,470)
Post-employment benefits
Increase in employee benefit provisions
Recharge of salaries and fees to exploration expenditure
Share based payments
Other staff costs
Financing expenses
Amortisation of borrowing costs
Interest expense – debt facility
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
(198,215)
(495,256)
103,399
(452,195)
(208,105)
(145,995)
(166,494)
115,278
(84,972)
(110,137)
(3,188,135)
(1,874,790)
(65,228)
(51,233)
(116,461)
(60,088)
(28,185)
(556,896)
(257,089)
(144,056)
(213,900)
(26,271)
(60,433)
(102,095)
(56,499)
(138,114)
-
-
-
(116,460)
(9,877)
(96,188)
(169,338)
(141,850)
(230,480)
(12,209)
(42,590)
(135,109)
(33,520)
(163,983)
(1,643,626)
(1,151,604)
Vintage Energy Ltd | Annual Report 2022
42
6
Income taxes
The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax
expense in the financial statements as follows:
Loss from operations
Income tax expense / (benefit) calculated at 25% (2021: 26%)
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
2022
$
(7,978,704)
(1,994,676)
201,467
1,793,209
-
30 June
2021
$
(2,368,480)
(615,805)
26,669
589,136
-
(1,793,209)
4,862,684
(589,136)
3,368,826
(3,069,475)
(2,779,690)
-
-
Total tax losses not brought to account at 30 June 2022 total $15,316,745 at 25% 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
2022
$
9
18,254,946
457,005
18,711,960
30 June
2021
$
9
7,119,895
249,132
7,369,036
(1)
(2)
Includes amounts pledged as security for bank guarantees and credit facilities amounting
to $137,865 (2021 $137,865)
Held by the ATP2021 Joint Venture, the Cervantes Joint Venture and the PRL 211 Joint Venture,
which can only be utilised for their respective expenditure programs.
8 Trade and other receivables
Joint operations receivables
GST receivables
Other receivables
30 June
2022
$
2,360,103
-
80,696
2,440,799
30 June
2021
$
598,348
33,203
74,528
706,079
Vintage Energy Ltd | Annual Report 2022
43
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 assets written back during the year
Balance as at 30 June
Accumulated depreciation and impairment
Balance at 1 July
Depreciation expense (i)
Leased assets written back during the year
Balance 30 June
Net Book Value
30 June
2022
$
235,394
25,257
260,651
460,807
196,614
-
657,421
270,197
241,820
-
512,017
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
406,055
426,004
(i)
Right of use asset $210,771 (2021 $168,849), computers $27,266 (2021 $59,024), furniture and
fittings $3,783 (2021 $10,494).
10 Exploration and evaluation assets
Exploration and evaluation
Exploration and evaluation – ATP2021 capital work in progress
Balance at 1 July
Additions for the year (i)
Research & Development refund (ii)
Impairment of Cervantes expenditure (ii)
Balance at 30 June
30 June
2022
$
30 June
2021
$
45,896,322
37,161,165
3,270,682
-
49,167,004
37,161,165
30 June
2022
$
30 June
2021
$
37,161,165
28,942,270
16,179,666
9,925,092
-
(1,706,197)
(4,173,827)
-
49,167,004
37,161,165
(i)
The increase in exploration and evaluation assets during the year included expenditure on:
PEL 155 Joint Venture
Galilee Deeps Joint Venture
Operated
permit
$
Non-operated
permit
$
364,938
12,638
Total
additions
$
364,938
12,638
ATP2021 Joint Venture (iv)
11,202,379
-
11,202,379
Cervantes Joint Venture (iii)
EP126, Bonaparte Basin
PRL211 Joint Venture
Other (PEP171, GSEL672)
142,750
1,129,220
32,599
3,295,142
-
-
-
3,295,142
142,750
1,129,220
32,599
Total additions
12,506,948
3,672,718
16,179,666
Closing
balance
$
8,208,056
12,330,134
22,706,713
-
2,549,105
3,109,764
263,232
49,167,004
Vintage Energy Ltd | Annual Report 2022
44
(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.
Cervantes Joint Venture expenditure for the year totalled $3,295,142. Accumulated expenditure being
carried on the balance sheet for the Cervantes Joint Venture totalling $4,173,827 was subsequently impaired
at 30 June 2022.
(iv)
Includes $3,270,682 expenditure on tangible pipeline and facilities relating to the ATP2021 Joint Venture evaluation program
which was incomplete at 30 June 2022.
11 Trade and other payables
Trade and other payables consist of the following:
Current
Trade payables
GST payable
Other payables
Total trade & other payables
12 Provisions
Current
Employee Benefits
Non-current
Employee benefits
Restoration provision
Movement in employee benefits
Opening balance
Movement for the year
Movement in restoration provision
Opening balance
Movement for the year
30 June
2022
$
2,842,945
438,028
217,562
3,498,535
30 June
2021
$
68,252
-
97,772
166,024
30 June
2022
$
681,249
681,249
179,040
970,000
1,149,040
365,033
495,256
860,289
925,000
45,000
970,000
30 June
2021
$
365,033
365,033
-
925,000
925,000
198,539
166,494
365,033
925,000
-
925,000
Vintage Energy Ltd | Annual Report 2022
45
13 Contract liabilities
Deferred revenues
Current
Non-current
Total
30 June
2022
$
974,000
6,526,000
7,500,000
30 June
2021
$
-
-
-
During the year, the ATP2021 Joint Venture secured a Gas Sales Agreement with AGL Wholesale Gas Limited
which, upon satisfaction of certain conditions, resulted in the prepayment of $15,000,000 as partial payment for
the supply of gas (Vintage 50%) over calendar years 2022-2026. Accordingly, the Company recorded contract
liabilities of $7,500,000 at 30 June 2022.
Cash funds received were $8,250,000, inclusive of $750,000 GST.
Deferred revenue from contracts with customers represents gas pre-sold to customers which is yet to be
delivered. Amounts are recognised as contract liabilities when no cash settlement option exists for the customer.
14 Other financial liabilities
Current
Lease liability (i)
Non-current
Lease liability (i)
Loan facility – PURE Asset Management (ii)
(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
(ii)
Loan facility reconciliation
Financing facility (PURE Asset Management)
Net of transaction costs:
Fair value of warrants issued
Amortisation of warrants
Other establishment costs for financing facility
30 June
2022
$
217,414
217,414
148,588
6,921,651
7,070,239
380,344
196,614
(218,543)
7,587
366,002
10,000,000
(2,647,059)
55,148
(486,438)
6,921,651
30 June
2021
$
160,717
160,717
219,627
-
219,627
82,380
460,807
(168,805)
5,962
380,344
-
-
-
-
-
On 8 June 2022, the Company drew down on the two $5 million debt facility tranches arranged with PURE
Resources Fund (“PURE”), as announced to the market on 6 December 2021. The facility will fund capital
expenditure to bring the Vali gas field to production.
Key terms of the facility are:
• Repayment due 48 months from first draw down.
•
Interest rate: 11.0% per annum payable every 3 months, reducing to 8.5% per annum once certain
operational cash flow conditions are met.
• Security: first ranking security over Vintage assets, where joint venture arrangements permit.
•
Financial covenants: include requiring a minimum of $1,500,000 cash in the bank.
Vintage Energy Ltd | Annual Report 2022
46
• Early repayment provisions which use a sliding scale penalty of 1.5% to 1.0% of the funds.
•
58,823,529 share warrants were issued to PURE with an exercise price of 17 cents per warrant, as
approved by shareholders at the general meeting held 18 March 2022. The warrants are exercisable at
any time over the 4-year facility term and may be used to repay the debt or for other purposes.
Transaction costs are those costs directly related to the loan and include establishment fees, legal fees and
warrants. The fair value of the warrants issued was determined using the Black-Sholes valuation methodology.
15
Issued capital
Ordinary shares
Balance at 30 June
Shares issued and fully paid
Ordinary Shares (i)
Beginning of the year
30 June
2022
$
30 June
2021
$
63,442,004
51,907,858
63,442,004
51,907,858
30 June
2022
Number
30 June
2022
$
30 June
2021
Number
30 June
2021
$
605,305,847
51,907,858
339,956,294
36,891,576
Shares allotted during the period
140,499,869
11,942,489
263,530,553
15,555,167
Conversion of performance rights
Fair value of lapsed broker options
Share issue costs
Total ordinary shares
362,500
-
-
43,500
118,251
(570,094)
1,819,000
338,385
-
-
-
(877,270)
746,168,216
63,442,004
605,305,847
51,907,858
Total contributed equity at 30 June
746,168,216
63,442,004
605,305,847
51,907,858
(1)
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:
• 100,000,000 ordinary shares via a capital placement at $0.085 per share
• 40,499,869 ordinary shares via a share purchase plan at $0.085 per share
• 362,500 ordinary shares on the conversion of performance rights
Vintage Energy Ltd | Annual Report 2022
47
16 Share options and performance rights
Share options
During the year, 6,000,000 share options were issued to Directors with an exercise price of $0.133 per option, and
an expiration date of 3 years from issue (29 November 2024). The options were approved at the Company AGM
held 29 November 2021. The fair value of the options granted were $169,783, calculated using the Black-Scholes
methodology.
A summary of unissued shares held under option during the year is as follows:
Date options granted
Holder
Opening
balance
Granted
during the
year
Exercise
price
Lapsed
Closing
balance
13 September 2018
Directors
4,000,000
13 September 2018
Brokers
1,500,000
19 August 2019
Company
Secretary
1,000,000
-
-
-
$0.35
$0.30
(4,000,000)
(1,500,000)
$0.35
(1,000,000)
-
-
-
29 November 2021
Non-Executive
Directors
-
6,000,000
$0.133
-
6,000,000
Total under option
6,500,000
6,000,000
(6,500,000)
6,000,000
Shares issued on exercise of remuneration performance rights
A total of 362,500 shares were issued to management on exercise of performance rights, following the meeting of
performance conditions. A further 362,500 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 29 November 2021.
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
Grant
date
Opening
Balance
Granted
during the
year
Exercised on
performance
condition met
Lapsed
Closing
Balance
Fair value at
grant date
$
Class B
June 2019
362,500
Class C
June 2019
362,500
-
-
Class ST1
Class LT1
Class LT2
Aug/Nov
2021 (i)
Aug/Nov
2021 (i)
Aug/Nov
2021 (i)
9,544,600
7,878,300
7,878,300
(362,500)
-
-
-
-
-
(362,500)
-
-
-
-
-
43,500
34,438
9,544,600
473,614
7,878,300
324,786
7,878,300
188,142
(i)
Refer table below for rights issued to the Managing Director
Performance rights issued under the employee incentive plan 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.
Vintage Energy Ltd | Annual Report 2022
48
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.
Class STI performance rights – Being employed by the Company at end of FY22, acceptable individual
performance to end of FY22 and the Company supplying first gas to market by end of FY22. In April 2022, the
Board extended these performance conditions to 1 October 2022.
Class LT1 performance rights – Being employed by Vintage at end of FY24 and CO2 production commenced,
or Nangwarry project m49onetized prior to end FY24.
Class LT2 performance rights – Being employed by Vintage at end of FY24 and market cap of $100million
reached prior to end FY24.
The rights have been valued using the Black-Scholes methodology at the grant date.
Included within the table above, the following share-based performance rights were issued to Mr. Neil Gibbins,
Managing Director, pursuant to resolutions passed at the Company’s AGM on 29 November 2021:
Class of Performance Right
Maximum number of performance rights
Class ST1
Class LT1
Class LT2
Total
1,729,700
2,018,000
2,018,000
5,765,700
During the year, 7,925,646 Founders’ Rights lapsed as performance conditions were not met.
17
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 (i)
Galilee Basin ATP-1015 (i)
Galilee Basin PCAs 319-324 (i)
Otway Basin PRL 249 (ex PEL 155) (ii)
Otway Basin PEP 171 (iii)
ATP 2021
PRL 211 (iv)
PELA 679 (v)
Perth Basin – L14 Cervantes Prospect (vi)
30 June
2022
% Interest
30 June
2021
% Interest
30
30
30
50
25
50
50
-
-
30
30
-
50
25
50
42.5
-
-
i.
“Deeps’’ JV contractual agreement with Comet Ridge Ltd. This is defined as all strata commencing underneath the
Permian coals and without a lower limit. Potential Commercial Areas 319-324 have been granted over the most
prospective areas of these ATPs to secure tenure and ATPs 733 & 734 under the PCAs have been renewed for twelve
years, while ATP 1015 under the PCAs is also due to be renewed for twelve years.
ii. Petroleum Retention Licence (PRL) 249, covering the Nangwarry CO2 discovery area.
iii. Vintage may earn up to a 50% legal and beneficial interest in the License, by:
expending the Initial Farm-in Obligation, ($450,000) to earn an Initial Farm in Interest of 25%; and (provided the
Initial Farm-in Interest has been earned in full) expending the Subsequent Farm-in Obligation ($1,082,000) to earn
the Subsequent Farm-in Interest of 25% (for an aggregate 50% interest).
iv. Vintage and PRL 211 partners purchased Impress (Cooper Basin) Pty Ltd.’s 15% interest in PRL 211, on a pro rata
basis.
v. 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.
vi. The Cervantes-1 well was drilled but failed to encounter economic hydrocarbons. The farmin has now terminated.
Vintage Energy Ltd | Annual Report 2022
49
18 Earnings per share
Both the basic and diluted earnings per share have been calculated using the profit attributable to shareholders of
the Company as the numerator. The reconciliation of the weighted average number of shares for the purposes of
diluted earnings per share to the weighted average number of ordinary shares used in the calculation of basic
earnings per share is as follows:
30 June
2022
Number
30 June
2021
Number
Weighted average number of shares used in basic earnings per share
683,979,739
536,404,753
Weighted average number of shares used in dilutive earnings per share
683,979,739
536,404,753
Potential ordinary shares are antidilutive when their conversion to ordinary
shares would increase earnings per share or loss per share. As such, there
are no dilutive securities on issue.
19 Commitments
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 of a 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
2022
$
30 June
2021
$
12,950,700
6,338,000
19,288,700
6,588,700
3,096,200
9,684,900
Exploration and evaluation
No longer than 1 year
Longer than 1 year but less than 5 years
20 Financial instruments
(a)
Capital risk management
The Company manages its capital to ensure that it will be able to continue as a going concern. As at 30 June 2022
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. The company also has $10,000,000 in
debt and contract liabilities (deferred revenue) of $7,500,000.
(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.
Vintage Energy Ltd | Annual Report 2022
50
(c)
Categories of financial instruments
Categories of financial instruments
Financial assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Financial liabilities
Trade and other payables
Other financial liabilities
Total financial liabilities
30 June
2022
$
30 June
2021
$
18,711,960
7,369,036
2,440,799
706,079
21,152,759
8,075,115
3,498,535
7,287,653
10,786,188
166,024
380,344
546,368
Commodity price risk management
(d)
The Company does not currently have any projects in production and has no exposure to commodity price
fluctuations.
Liquidity risk management
(e)
The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial
assets and liabilities.
Liquidity and interest risk tables
The following tables detail the Company’s remaining contractual maturity for its non-derivative financial assets and
liabilities. The tables have been prepared based on the undiscounted cash flows expected to be received/paid by
the Company.
Weighted
average
effective
interest
rate
2022
Financial assets:
Less than 1
month
1 to
3 months
3 months
to 1 year
1 to 5 years
5
plus
Total
Non-interest bearing
0.00%
9
2,440,799
Variable interest rate
0.75%
18,117,081
457,005
-
-
-
137,865
Fixed interest rate
1.50%
Financial
liabilities:
Non-interest bearing
Interest bearing (i)
11%
-
-
-
(3,498,535)
(217,414)
(148,588)
-
(10,000,000)
18,117,090
(600,731)
(79,549)
(10,148,588)
-
-
-
-
-
-
-
-
-
2,440,808
18,574,086
137,865
(3,864,537)
(10,000,000)
7,288,222
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
2021
Financial assets:
Non-interest bearing
Variable interest rate
Fixed interest rate
0.00%
0.75%
1.50%
9
6,982,030
706,079
249,132
-
-
-
-
137,865
-
-
-
-
-
-
706,088
7,231,162
137,865
Vintage Energy Ltd | Annual Report 2022
51
Financial
liabilities:
Non-interest bearing
-
(166,024)
(160,717)
(219,627)
6,982,039
789,187
(22,852)
(219,627)
-
-
(546,368)
7,528,747
(i)
$10,000,000 interest bearing financial liabilities reported exclusive of $3,078,349 transaction costs.
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 $62,000.
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 (2021: net fair value).
Financial assets and financial liabilities are recognised at amortised cost.
21 Contingent liabilities
No contingent liabilities exist as at the date of the financial report.
22 Related party transactions
(a) Key management personnel
Key management of the Company are the executive members of Vintage Energy Limited and its Board of Directors.
Key management personnel remuneration, as detailed in the Company’s remuneration report within the Directors’
report, includes the following expenses:
Short-term employee benefits
Share based payments
Post-employment benefits
(b) Transactions with affiliates
30 June
2022
$
615,125
352,270
55,314
1,022,709
30 June
2021
$
574,432
105,389
50,996
730,817
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 (2021 – nil).
Vintage Energy Ltd | Annual Report 2022
52
23 Remuneration of auditors
Audit or review of the financial report
Other Services
Other services include fees for taxation services.
The company’s auditor is Grant Thornton Audit Pty Ltd.
24 Cash flow information
Reconciliation of cash flows from operating activities
Loss for the year
Depreciation
Shares options and performance rights expensed
Wages and salaries capitalised
Recoveries offset against exploration
Government grants and tax incentives
Changes in assets and liabilities
Increase / (decrease) in contract liabilities
(Increase) / decrease in trade and other receivables
Increase in provisions
Increase / (decrease) in trade and other payables
30 June
2022
$
55,850
3,000
58,850
30 June
2021
$
53,000
3,000
56,000
30 June
2022
$
30 June
2021
$
(7,978,704)
(2,368,480)
241,820
797,857
238,367
190,362
(103,399)
(115,278)
(2,193,448)
(1,530,877)
-
1,806,197
8,250,000
1,767,923
(495,256)
3,230,127
-
11,482
(166,494)
330,804
3,516,920
(1,603,917)
25 Company information
The principal place of business of the company is 58 King William Road, Goodwood SA 5034.
Vintage Energy Ltd | Annual Report 2022
53
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:
i.
ii.
Giving a true and fair view of its financial position as at 30 June 2022 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:
i.
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
23 September 2022
Vintage Energy Ltd | Annual Report 2022
54
Independent auditor’s report
Grant Thornton Audit Pty Ltd
Grant Thornton House
Level 3
170 Frome Street
Adelaide SA 5000
GPO Box 1270
Adelaide SA 5001
T +61 8 8372 6666
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 2022, 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 2022 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.
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘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 Limited 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
ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation.
Vintage Energy Ltd | Annual Report 2022
55
Material uncertainty related to going concern
We draw attention to Note 4.21 in the financial statements, which indicates that the Company incurred a net loss
of $7,978,704 during the year ended 30 June 2022. As stated in Note 4.21, these events or conditions, along
with other matters as set forth in Note 4.21, 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.
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 – Note 10
At 30 June 2022 the carrying value of exploration and
evaluation assets was $49,167,004.
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 the management reconciliation of
capitalised exploration and evaluation expenditure
and agreeing to the general ledger;
•
reviewing management’s area of interest
considerations against AASB 6;
• conducting a detailed review of 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;
− enquiring 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;
• assessing the accuracy of impairment recorded for
the year as it pertained to exploration interests;
• 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.
Vintage Energy Ltd | Annual Report 2022
56
Key audit matter
How our audit addressed the key audit matter
Contract liabilities – Note 13
During the year ended 30 June 2022, the Company
entered into a Gas Sales Agreement for the supply of gas
through their Joint Venture ATP 2021. The agreement
included a prepayment of $15 million, of which $7.5
million is the portion relating to the Company’s share in
the Joint Venture. The prepayment has been classified
as a contract liability as at 30 June 2022.
Our procedures included, amongst others:
•
reviewing the Gas Sales Agreement to understand
the key terms and conditions;
• evaluating management’s estimates and
judgements relating the classification and
disclosures relating to the agreement;
The Gas Sales Agreement will be satisfied by the delivery
of gas from ATP 2021 over a 4 year period. A process
was undertaken by management to estimate the current
and non-current portion.
• assessing management’s position paper relating to
the gas sales agreement for the treatment of timings
and significant financing components in consultation
with our subject matter experts;
This area is a key audit matter due to the significant
estimates involved in determining the current and non-
current portion of the contract liability.
• understanding and corroborating the assumptions
included in management’s memorandum; 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 2022 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.
Responsibilities 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.
Vintage Energy Ltd | Annual Report 2022
57
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar1_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
2022.
In our opinion, the Remuneration Report of Vintage Energy Limited, for the year ended 30 June 2022
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,
23 September 2022
Vintage Energy Ltd | Annual Report 2022
58
Schedule of tenements
Tenement
Basin
Operator
Interest held
30 June 2022
Interest held
30 June 2021
Queensland
ATP 743 (1)
ATP 744 (1)
ATP 1015 (1)
PCAs 319-324 over
prospective sections of
ATPs 743, 744 & 1015 (1)
ATP 2021
South Australia
Galilee
Galilee
Galilee
Galilee
Comet Ridge Ltd
Comet Ridge Ltd
Comet Ridge Ltd
Comet Ridge Ltd
30%
30%
30%
30%
Cooper/Eromanga
Vintage Energy Ltd
50%
PRL 211(5)
Cooper/Eromanga
Vintage Energy Ltd
Otway
Otway
Otway Energy Pty Ltd
Vintage Energy Ltd
Cooper/Eromanga
Vintage Energy Ltd
50%
50%
100%
-
30%
30%
30%
-
50%
42.5%
50%
100%
-
Otway
Vintage Energy Ltd
25%
25%
Perth
RCMA Australia Pty Ltd
-
-
PRL 249 (ex PEL 155)
GSEL 672(6)
PELA 679 (2)
Victoria
PEP 171 (3)
Western Australia
L 14 (4)
Northern Territory
EP 126
Bonaparte
Vintage Energy Ltd
100%
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. Potential Commercial Areas 319-324 have been
granted over the most prospective areas of these ATPs to secure tenure and ATPs 733 & 734 under the
PCAs have been renewed for twelve years, while ATP 1015 under the PCAs is also due to be renewed for
twelve years.
(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. The Cervantes-1 well was drilled but
failed to encounter economic hydrocarbons. The farmin has now terminated.
(5) Vintage and PRL 211 partners purchased Impress (Cooper Basin) Pty Ltd.’s 15% interest in PRL 211, on a
pro rata basis
(6) Vintage applied for and was granted Gas Storage Exploration License 672 and has 100%
Vintage Energy Ltd | Annual Report 2022
59
Information pursuant to the listing
requirements of the ASX
Number of holders of equity securities
Ordinary shares
At 19 September 2022, the issued capital comprised of 746,717,415 ordinary shares held by 2,517 holders.
Employee performance rights
At 19 September 2022, there were 32,092,500 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 19 September 2022 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
40
78
374
1,255
770
2,517
4,882
319,274
3,025,599
54,088,225
689,279,435
746,717,415
0.00%
0.04%
0.41%
7.24%
92.31%
100.00%
Holders less than a marketable parcel = 197.
Vintage Energy Ltd | Annual Report 2022
60
Substantial Shareholders as at 19 September 2022
BNP PARIBAS NOMS PTY LTD
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