SA gas explorer Vintage Energy fires up on ASX debut

ADELAIDE gas explorer Vintage Energy fired up on its debut on the Australian sharemarket on Monday, trading at 23c, a 15 per cent premium to its issue price.

The company, trading as VEN, is chaired by former Beach Energy managing director Reg Nelson, with fellow former Beach colleague Neil Gibbins, the managing director.

The listing followed an oversubscribed $30 million capital raising, which will fund the company’s ambitions to tap into the eastern Australian gas market

Institutions took up more than 60 per cent of the share offer, which was priced at 20c, and helped raise $30 million.

Vintage is eyeing three main projects — one in the Galilee Basin via a farm-in arrangement with Comet Ridge, a joint venture with Rawson Oil and Gas in the Otway basin in the South-East, and a permit in the onshore section of the Bonaparte Basin in the Northern Territory.

Mr Nelson stepped aside from the top job at Beach in 2015 after a 23-year career with the group, developing it from a minnow to a company with a valuation in the billions.

New investors hold 56.8 per cent of the company while seed investors 25.6 per cent and directors and management 2.6 per cent.

The founders, including Mr Nelson and Mr Gibbins, hold 15 per cent stake in the company.

Vintage shares closed at 22c.