The South Australian government has awarded $5 million in grants to Vintage Energy (ASX:VEN) for its Southern Flank gas projects.
The funding is set to cover up to 50% of the costs for drilling two critical new production wells: Odin-3 and Vali-4.
The grants, distributed as $2.5 million each to the PRL 211 and ATP 2021 joint ventures, are part of the broader SA Gas Incentive Grant program.
The initiative targets high-quality projects capable of delivering gas supply and infrastructure before late 2028.
Vintage Energy, the majority stakeholder with a 50% interest, operates alongside partners Metgasco and Bridgeport (Cooper Basin), who each hold 25%.
Vintage Managing Director Neil Gibbins hailed the move as a "pleasing endorsement" of the projects' capacity to meet the state's future energy demands.
The new wells are strategically designed to tap into the Toolachee and Epsilon reservoirs, following four years of successful production appraisal.
Currently, the Odin and Vali fields supply essential gas to major energy generators AGL and ENGIE.
Pending the final signing of grant agreements and the securing of drilling rigs, operations are expected to commence in the September quarter.
At the time of reporting, Vintage Energy's share price was $0.0050.