Vintage Energy Limited Annual Report 2022

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FY2022 Annual Report · Vintage Energy Limited

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Annual Report
2022

ABN 56 609 200 580

Vintage Energy Ltd | Annual Report 2022
Vintage Energy Ltd | Annual Report 2022

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

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

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

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

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

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

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

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

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

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

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.

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

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

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

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

Total

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

1.
2.

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

Contingent resources

2C Contingent Resource (PJ) Net to Vintage

Area

FY21
(PJ)

Acquisitions
&
Divestments

Contingent
Resources to
Reserves

Galilee
Basin

Cooper
Basin

Otway*
Basin

Total

Revisions

FY22 (PJ)

Gas (PJ)

0.8

*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:

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.

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,

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.

4.
5.

Vintage Energy Ltd | Annual Report 2022

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)

Total

PRL 211
ATP 2021
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

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

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

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

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

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

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

Nomination
Committee

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

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

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

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

9 November 2015

•

Position

Chairman

Managing 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

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

29,940

8,742

55,314

135,005

108,868

494,454

175,514

1,022,709

42%

52%

24%

35%

42%

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

Neil Gibbins

319,549

105,389 (1)

Simon Gray

93,464

6,572

4,381

27,602

8,060

574,432

105,389

50,996

75,751 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

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

Employee

Class

Number of
rights granted

Grant Date

$ Value at
Grant date

Number
converted

Number
lapsed

Neil Gibbins

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)

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

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)

1,320,941 (i)

(1,320,941)

Rights
granted

Balance
30 June 2022

5,765,700

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

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

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

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

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

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

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)

(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

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

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

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)

-
-

(338,385)

190,362

385,000

15,170,167

338,385

238,453

(238,453)

(877,270)

51,907,858

(8,562,680)

480,705

(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)

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

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

(570,094)

63,442,004

(16,202,947)

3,370,284

(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

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

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

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

7,369,036

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

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

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

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

4.13 Exploration and evaluation costs

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

ii.

iii.

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

•

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

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

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

4.14

Interest in joint operations

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

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

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

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

•
•
•
•
•
•

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

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

Vintage Energy Ltd | Annual Report 2022

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

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

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

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

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

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

18,254,946

457,005

18,711,960

30 June
2021

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

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

Cervantes Joint Venture (iii)

EP126, Bonaparte Basin

PRL211 Joint Venture

Other (PEP171, GSEL672)

142,750

1,129,220

32,599

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

(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

179,040

970,000

1,149,040

365,033

495,256

860,289

925,000

45,000

970,000

30 June
2021
$

365,033

925,000

198,539

166,494

365,033

925,000

Vintage Energy Ltd | Annual Report 2022

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

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

• 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.

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

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)

9,544,600

7,878,300

(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

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

5,765,700

During the year, 7,925,646 Founders’ Rights lapsed as performance conditions were not met.

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

42.5

“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

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

(c)

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%

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%

6,982,030

706,079

249,132

137,865

706,088

7,231,162

137,865

Vintage Energy Ltd | Annual Report 2022

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

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

Directors’ declaration

In the opinion of the Directors of Vintage Energy Limited:

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

2001, including:

ii.

Giving a true and fair view of its financial position as at 30 June 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:

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

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

Vintage Energy Ltd | Annual Report 2022

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

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

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

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

Comet Ridge Ltd

30%

Cooper/Eromanga

Vintage Energy Ltd

50%

PRL 211(5)

Cooper/Eromanga

Vintage Energy Ltd

Otway

Otway Energy Pty Ltd

Vintage Energy Ltd

Cooper/Eromanga

Vintage Energy Ltd

50%

100%

30%

50%

42.5%

50%

100%

Otway

Vintage Energy Ltd

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%

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

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

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

Substantial Shareholders as at 19 September 2022

BNP PARIBAS NOMS PTY LTD

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

Number of shares

53,100,031

38,941,062

7.11%

5.22%

Top Twenty Shareholders as at 19 September 2022

Position

Holder Name

Holding

BNP PARIBAS NOMS PTY LTD

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

UBS NOMINEES PTY LTD

MR DOMINIC VIRGARA

J P MORGAN NOMINEES AUSTRALIA PTY LTD

HOWZAT SERVICES PTY LTD

NATIONAL NOMINEES LIMITED

N M GIBBINS

AURELIUS RESOURCES PTY LTD

RADELL PTY LTD

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED

MR REGINALD GEORGE NELSON & MRS SUSAN MARGARET NELSON

MR CHRISTOPHER JAMIESON

CITICORP NOMINEES PTY LIMITED

MR JEFFREY LEONARD BENNETTS & MRS HELEN JUDITH BENNETTS

COOEE INVESTMENTS PTY LTD

MR STEVEN JAMES HEFFERNAN

MONLEY PTY LTD

SMART HOLDINGS PTY LTD

CATHARINE MARY GIBBINS

Total

Total Issued Capital

53,100,031

38,941,062

23,415,423

17,100,000

15,302,801

13,986,339

10,723,970

9,107,016

9,086,460

9,003,780

8,086,229

7,661,176

7,399,243

7,223,201

6,981,000

6,740,609

6,410,611

6,136,727

5,977,905

5,661,177

7.11%

5.22%

3.14%

2.29%

2.05%

1.87%

1.44%

1.22%

1.21%

1.08%

1.03%

0.99%

0.97%

0.93%

0.90%

0.86%

0.82%

0.80%

0.76%

268,044,760

35.90%

746,717,415

100.00%

Vintage Energy Ltd | Annual Report 2022

Glossary

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

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

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

PRMS

Prospective Resources

Low, 1U

Best, 2U

High, 3U

Play

Lead

Prospect

Chance of Discovery

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

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

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

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

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

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

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

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

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

Chance of Development

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

Chance of Commerciality

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

Discovery

Contingent Resources

Reserves

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

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

Low estimate of Contingent Resources.

Best estimate of Contingent Resources.

High estimate of Contingent Resources.

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

1P, Proved

Proved reserves (deterministic or probabilistic).

2P, Proved and Probable

Proved plus Probable reserves (deterministic or probabilistic).

3P, Proved, Probable and

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

Possible

Range of Uncertainty

The range of estimated quantities of potentially recoverable petroleum in any one of the
three categories, Prospective Resources, Contingent Resources and Reserves. Three
estimates are designated to describe the range, with decreasing certainty from low to high.

Vintage Energy Ltd | Annual Report 2022

Deterministic

Probabilistic

P90

Probabilistic Estimate

P50

Probabilistic Estimate

P10

Probabilistic Estimate

Because the absolute minimum and absolute maximum outcomes are the extreme cases it
is considered more practical to use low and high estimates as a reasonable representation
of the range of uncertainty. There are two methods; deterministic and probabilistic.

A deterministic estimate is a single discrete scenario within a range of outcomes. Each of
the input parameters is a single value.

The statistical uncertainty of individual reservoir parameters is used to calculate the
statistical uncertainty of the in-place and recoverable resource volumes. Often a stochastic
(i.e., Monte Carlo) method is used to calculate probability functions by random sampling of
the input distributions. The range of uncertainty is selected from volumes sampled at 90%,
50% and 10% of the output distribution.

From the probabilistic method there is a greater than 90% cumulative probability that
quantities estimated would ultimately be exceeded.

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

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

General terms and abbreviations used in the petroleum industry

3D
ASX
ATP
B
bbl
Bcf
Blooie Line

Boe

Bopd

Brent

Carboniferous

Condensate

Conventional

Cretaceous
CSG

Devonian
DST

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

Three dimensional; usually referring to a seismic survey with a fine grid of orthogonal lines.
Australian Securities Exchange.
Authority to Prospect which is an exploration licence in Queensland.

Billion 109, or 1,000 million.

One barrel of crude oil contains 42 US gallons (or 34.97 imperial gallons, or, 159 litres).

Billion cubic feet.

Large diameter flow line for air or gas drilling, that diverts the flow of air or gas from the rig
into a discharge (flare) pit area.

Barrels of oil equivalent. Natural gas is converted to barrels of oil equivalent generally using
a ratio of approximately 6,000 cubic feet of natural gas as an amount equivalent to one
barrel of oil.

A liquid flow rate expressed in barrels of oil per day.

Brent crude oil marker. The price of oil from the giant Brent oil field in the North Sea became
a reference marker for other types of crude oil, plus or minus a differential for quality and
other factors. Thus, Brent Futures Contracts became tradeable on various financial markets
both for hedging purposes and as a part of commodities trading in general.

A period 359 to 299 million years ago.

A liquid hydrocarbon phase that is slightly lighter than and with less calorific content than
crude oil. More usually occurs in association with natural gas. It is gaseous at reservoir
conditions but will condense from gaseous vapour to a liquid at the lesser temperature and
pressure at standard surface conditions.

Conventional hydrocarbons or Conventional Oil and Gas refers to petroleum, (crude oil and
raw natural gas) occurring in discrete accumulations or reservoirs where the source of
hydrocarbons is distant, and the hydrocarbons migrate to a trap. The hydrocarbons are
extracted from the ground by conventional means and methods, i.e., after drilling and using
the natural reservoir pressure or pumping and can include stimulation.

A period from 145 to 66 million years ago.

Coal seam gas.

A period from 419 to 359 million years ago.

Drill stem test. A procedure for isolating and testing the pressure, permeability, and flow
capacity of a geological formation during the drilling of a well. Mechanical valves are in a

Vintage Energy Ltd | Annual Report 2022

EP
Fault
Gas Condensate

GJ
Graben

Hydraulic fracturing

Hydrocarbon

Improved Recovery

Joule

Jurassic
KB

Km
Km2
LNG
LNG Netback Price

Logs

m
M
MM
Net pay

OGIP, OGIIP

OOIP, OOIIP

Oil Shale

P&A

special cylindrical tool and connected at the base of a drill string and are activated into the
set, and open or closed position by applying weight or rotation of the drill pipe respectively.

Exploration Permit for petroleum as in the Northern Territory.

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

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

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

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

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

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

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

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

A period from 201-145 million years ago

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

Kilometres.

A square kilometre.

Liquefied natural gas.

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

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

Metres

1,000

Millions 106

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

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

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

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

Plugged and abandoned. Refers to the process of the final abandonment of petroleum wells
usually by spotting cement plugs at key intervals within the well to ensure the protection and

Vintage Energy Ltd | Annual Report 2022

PEL
Permian
Permit Areas

Pool

Porosity

Reflectors

Reservoir

Resources

Risk

RTSTM

scf

scf/d

Seismic

Shale volume

isolate of aquifers and depleted reservoirs. Any surface wellheads are removed and the
general location restored to a natural state.

Petroleum Exploration Licence as used in South Australia.

A period 299 to 252 million years ago.

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

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

An individual and separate accumulation of petroleum in a reservoir.

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

As in seismic reflectors. Refer to Seismic.

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

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

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

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

Rotary Table. Refer to KB, kelly bushing.

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

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

A flow rate in standard cubic feet per day.

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

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

Standard conditions

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

Sub-blocks

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

Vintage Energy Ltd | Annual Report 2022

TCF

Tectonic

Tenement

TOC

Triassic

Unconventional oil and

gas

Water saturation

WTI

Trillion cubic feet of gas.

Total depth of the well.

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

Ground granted for exploration or production purposes.

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

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

A period from 252-201 million years ago

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

Vitrinite reflectance. It is a measure of light reflectance from organic matter in sediments. It
provides an indication of the organic maturity of source rocks and whether petroleum may
have been generated under heat and pressure and expulsed for potential capture and
preservation in reservoir traps.

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

The price of West Texas Intermediate crude oil as at the delivery point at Cushing,
Oklahoma. It is used as a benchmark for oil pricing but has declined in importance in recent
years. Refer to Brent.

Vintage Energy Ltd | Annual Report 2022

Corporate directory

Vintage Energy Ltd (ASX: VEN)

ABN 56 609 200 580

Chairman

Reg Nelson

Directors

Neil Gibbins | Managing Director

Nick Smart | Non-executive Director

Ian Howarth | Non-executive Director

Company Secretary

Simon Gray

Registered Office

58 King William Road

Goodwood SA 5034

P: +61 (0) 8 7477 7680

info@vintageenergy.com.au

www.vintageenergy.com.au

Share Registry

Automic Pty Ltd

Level 5

126 Phillip Street

Sydney NSW 2000

Contact:

P: 1300 288 664 (within Australia)

P: +61 (0) 2 9698 5414

www.automic.com.au

Auditor

Grant Thornton Audit Pty Ltd

Grant Thornton House

Level 3

170 Frome Street

Adelaide SA 5000

Vintage Energy Ltd | Annual Report 2022