MELBOURNE: Vintage Energy Ltd. (ASX: VEN) has signed agreements to sell its entire 25% interest in PEP 171, an onshore exploration permit in Victoria’s Otway Basin, to Beach Energy Ltd. (ASX: BPT) for $1.25 million.
The sale, announced Thursday, is contingent on regulatory approvals and the waiver of pre-emptive rights by joint venture partner Amplitude Energy (ASX: AEL), which holds the remaining 75% stake. Beach Energy will also assume operatorship of PEP 171 upon completion.
The deal includes a $1 million cash payment and a $250,000 waiver of a milestone payment owed by Vintage. Proceeds will support Vintage’s focus on developing its Southern Flank gas fields in the Cooper Basin and the Nangwarry Contingent Resource in the Otway Basin.
“We remain optimistic about PEP 171’s potential, but our immediate priority is advancing our core assets,” said Managing Director Neil Gibbins. The sale follows a recent $2.1 million capital raising, strengthening Vintage’s financial position ahead of its Production Uplift Program.
PEP 171, located near gas infrastructure in southwestern Victoria, has been explored for gas prospects but remains undeveloped. Vintage retains other interests in the Otway and Cooper basins.