Vintage Energy acquisition update

Vintage Energy (ASX:VEN) and Galilee Energy have terminated their scheme of arrangement for Vintage to acquire Galilee. The companies mutually agreed that the acquisition was no longer in the best interest of their shareholders.

Implications of termination and future outlook

The decision to terminate the acquisition agreement between Vintage Energy and Galilee Energy follows extensive discussions and mutual consent that the scheme was not beneficial for shareholders. The termination highlights the value of uncommitted gas reserves crucial for future supply in east coast Australia. Vintage Energy aims to capitalize on its resources and explore new opportunities. The announcement underscores a strategic shift as both companies focus on maximizing resource value and addressing future energy demands.

Executive insights on termination decision

Ray Shorrocks, Executive Chairman of Galilee Energy, expressed disappointment over the termination but acknowledged that it was the right decision for Galilee shareholders. He thanked the Vintage team for their efforts. Reg Nelson, Chairman of Vintage Energy, acknowledged the efforts of Galilee’s directors in considering the merger. He emphasized that the scheme was not in the best interests of Vintage shareholders, leading to its termination.