Expectations from some Australian oil and gas analysts is that Vintage Energy is on the verge of breakeven.
They expect the company to post a final loss this year, before turning a profit of somewhere in the vicinity of AU$2.5m in 2025, which is in comparison to its current lack of meaningful revenue.
It's preparing to undertake optimisation work on the two producing Odin wells, while Vali-1 is producing raw gas at 1.3 MMscf/d under a separate sales contract with AGL Energy.
Also the merger of VEN with its growing conventional South Australian and Queensland gas projects and Galilee's Queensland coal seam gas project will boost production, on the back of proven-plus-probable reserves of approximately 50 petajoules of gas, long-term sales contracts, along with the 2,500 petajoule contingent Glenaras resource, one of the largest uncontracted gas resources on the east coast.
Out of this they should gain from greater exposure to a market with looming East Coast supply shortages.
And let's not forget the potential of Vintage's Nangwarry carbon dioxide (CO2) resource amid concern of the availability of food-grade CO2, a critical input for day-to-day staple products and services such as food and beverage production and storage, healthcare, horticulture and fire suppression.
VEN Price at posting:
0.9¢ Sentiment: Buy Disclosure: Held
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