Vintage Energy(Investment Case)· Highly experienced board of...

Vintage Energy

(Investment Case)

· Highly experienced board of directors and advisors with many decades of leadership, management, operational and technical background in the oil and gas industry and Australian equity markets- including

Ø Ex MD of BPT who took them from a small explorer to major producer. He spent 23 years in the top job and knows the Cooper basin as good as anyone.

Ø Ex Chief Geophysicist with BPT that went on to be COO. Also held significant roles at Santos and Esso

· Vintage technical team has delivered a 100% success rate from wells drilled to date

· They have ex-Santos people and they are looking to pipe gas straight into their Moomba facility for processing, so there is limited cost to get gas to market. Only 15km of gas pipeline has to be installed in order to do it, so minimal outlay.

· Recent shortages of gas supply in winter periods have seen gas supply costs run from a low base of $5 up to $15-16 in peak periods so margins can be very significant in gas market.

· Great CO2 discovery. A recent plugged and abandoned C02 well (Caroline) was the most economic well ever in South Australia. It produced for 50 years and Vintage believe that their C02 well is actually bigger. Financial forecasts on this well have been displayed on the forum and are well worth reading

· Its key to note that there is shortages of C02 around the world (U.S especially) and it can be used for many things ie: Carbonation of soft drinks, fruit juices and beer – Recharging of natural mineral waters – Winemaking – Tapping beer and oxidation prevention through contact with air – Conservation of wine, unfermented grape juice and fruit juices – Medical devices – Cold storage / refrigeration – Accelerating growth of farm produce as an atmosphere additive – Preparation of sodium carbonate, alkaline bicarbonates, lead carbonate and various organic substances (e.g. salicylic acid) – Production of paints and varnishes and manufacture of foam rubber

There is a clear gas supply shortage in the eastern states of Australia and spot gas prices have reached record levels. Crude oil prices have rebounded and stabilised from the extreme lows of 2015-16 and again in 2020-21. This, combined with reductions in operating costs, are expected to result in improved margins for both oil and gas production, creating opportunities for increased exploration and development of oil and gas assets within Australia. The increasing focus on renewable energy, coupled with the phasing out of coal suppliers and depleting gas reserves is going to cause periods of time where the gas supply needs of the east coast will simply not meet the demands.

Since the Company’s inception, management, the directors and advisors have been actively reviewing oil and gas opportunities and corporate opportunities in the Australian market. The portfolio build strategy is to:

• Take advantage of the Eastern Australian gas crisis
• Unlock the potential of poorly explored parts of prospective onshore basins
• Aim for early commercialisation on attractive terms, targeting assets that:
  • Are close to markets with proximity to pipelines
  • Allow us to build on our existing relationships with large utility companies
  • Can be developed quickly
  • Offer future commercial potential (e.g., for gas storage *key point)
• Secure low-cost frontier acreage with a proven petroleum system to provide high upside potential

Technicals

· Right side of the trend line now and BOWP forming

· As they have undertaken successful drilling programs the volume has started to have a significant increase and as they move towards production next year that should further improve.

ASSETS

Cooper/Eromanga Basins- Total acreage position of 862.8km2

· Potential nine well development targetingfield life of ~20 years (based on 2P Reserves)

Vintage has a 50% interest and operatorship in ATP 2021 in the Queensland portion of the Cooper/EromangaBasins, with Metgasco Ltd 25% and Bridgeport (Cooper Basin) Pty Ltd 25%. A recent gas discovery was made in the Vali prospect, with the Vali-1 ST1 well identifying gas pay and gas and oil shows at various intervals. This will result in follow up exploration and appraisal work in the permit and the development of the Vali Field.

Vintage will earn a 42.5% interest in PRL 211 (Metgasco Ltd 21.25%, Bridgeport (Cooper Basin) Pty Ltd 21.25% and Senex Energy Ltd 15%), a permit on the South Australian side of the Cooper/Eromanga Basins and adjacent to ATP 2021, by drilling a prospect called Odin. This prospect straddles the border of the two permits and is a ‘look-a-like’ to the Vali discovery.

Otway Basin

· Nangwarry-1 CO2 discovery potentially capableof commercial production over 30+ years

· Potential for reliable source of food gradeCO2

· Lowcost to develop and potentially highly profitable

Vintage has 50% interest in PEL 155, onshore Otway Basin, with Otway Energy Pty Ltd holding 50% and operatorship. The Nangwarry-1 CO2 discovery was made in PEL 155 in early 2020, which is a high-quality CO2 discovery with near-term potential for commercial production and sales, and an MOU with Supagas Pty Ltd has been signed.

The Company has also signed a farm-in agreement with Somerton Energy Pty Ltd (wholly owned by Cooper Energy Ltd) whereby it has taken over operatorship of PEP 171 and is earning a 25% interest and can earn up to a 50% interest. The permit is located onshore in the Otway Basin and has strong gas exploration potential. The Victorian Government has recently announced a lifting of the onshore gas exploration and production moratorium on 1 July 2021 which will allow Vintage to actively pursue opportunities in this permit from that date.

Galilee Basin

Vintage has earned a 30% interest in the “Galilee Basin Deeps Joint Venture” to assess the Lake Galilee Sandstone reservoir sequence of the GalileeBasin (within permits ATP 743, ATP 744 and ATP 1015). Comet Ridge Ltd hold 70% and operatorship. Two wells have been drilled with Albany-1 flowing gas to surface at a rate of 230,000 scfd unstimulated.

The Albany-1 well was followed up by the Albany-2 well, a 7 kilometre step-out appraisal well, and a side-track of Albany-1 to further evaluate the Albany gas field.

Perth Basin

Vintage will earn a 30% interest in the Cervantes Prospect, with the other joint venture parties being Metgasco Ltd earning 30% and RCMA 40%. Cervantes is an oil prospect that sits within production licence L14 along the trend between the Hovea, Jingemia and Cliff Head oil discoveries.

Bonaparte Basin

Vintage has a 100% interest in EP 126, which is located onshore in the Bonaparte Basin, Northern Territory, and has executed binding Heads of Agreement with Firetail Energy Services Pty Ltd for it to become a joint venture partner in the EP126 permit. Under the terms of the agreement, Firetail will earn a 10% interest in EP126 through the provision of $850,000 of services for the testing of Cullen-1. EP 126 has strong gas and oil exploration potential.