Each one in plain English, with the numbers worked through for a shareholder.
15 Dec 2020capital raising announcement● NeutralMajor
ADX placed 221.25m shares at A$0.006 to raise A$1.3275m, with one free option per two shares (A$0.008 strike, expiring 15 Jun 2021). A share purchase plan seeks up to A$1.0m on the same terms. Funds go to the Upper Austria bank guarantee, workovers and working capital.
What it means for a shareholder
221m new shares at A$0.006 to raise about A$1.3m. That's 11% dilution: every existing holder's slice gets 11% smaller. If you held A$1,000 of shares (166,667 at the issue price), your slice goes from 0.00966% to 0.00856% of the company. To keep it you'd need 21,372 more shares - about A$128 at the issue price.
ADX retracted slide 11 of its webinar presentation, which showed NPV per barrel against resource size. The ASX viewed it as a possible financial forecast without disclosed assumptions. Investors should disregard it. A corrected presentation was attached.
Webinar slides on the Upper Austria licence expansion, presented by the Austrian team. They repeat the licence and prospect details already announced. This version was later retracted in part (see next release).
ADX announced an investor webinar on 8 December about the new Upper Austria exploration licences, with the Austrian team presenting. The chairman's letter calls the licences transformational. It contains no new data.
ADX finalised two Upper Austria Molasse Basin exploration licences covering 450 km2, effective 1 Jan 2021. They hold 10 drill-ready prospects with 42 MMBOE combined best-case prospective resource. Commitment is two wells over four years plus a EUR 342,828 bank guarantee. A farm-out is planned early 2021.
ADX agreed with noteholders to defer repayment of the A$3.5m loan notes. The first A$1.75m is repaid in four half-yearly instalments from 26 May 2021, the rest as a bullet on 26 Nov 2022. Interest stays 6%. Holders get new options, subject to shareholder approval. This replaces the 50% due 26 Nov 2020.
ADX added BP Brent swaps at US$44.34 for 40% of proven Austrian oil output, 1 Jan to 30 Jun 2021. With the earlier US$41.77 swaps, about 80% is fixed for Jan-Apr 2021. This extends the hedging begun in 2020.
ADX will present at the Resources Rising Stars investor forum on 10 November, with Executive Chairman Ian Tchacos speaking. The attached slides are an investor update, and the visible text shows no new results.
Independent audit by ERCE of the Austrian fields' developed reserves at 31 Dec 2019 found 0.54 MMboe 1P and 0.89 MMboe 2P, 13% and 4% above ADX's pre-purchase estimates. 3P is 1.51 MMboe. This delivers the reserves report due in Q4.
Austrian output averaged 308 BOEPD, down 1%, with Brent up 47% to US$43. The independent reserves audit is complete, with the report due in Q4. Mica-1 gas quality was excellent after acidisation, but Parta 3D seismic is deferred after Tamaska's default.
September quarter cash fell to A$2.062m from A$3.039m. Operating outflow was A$643k on A$1.752m receipts; investing outflow A$1.246m, mostly exploration spend. A$1.026m was borrowed; facilities total A$5.34m with A$4.526m drawn. A$202k Austria price refund appears in year-to-date figures.
ADX's 95,167,287 listed options (exercise price 1.5c) expire 20 November 2020. The share price was 0.5c on 13 October, so ADX calls exercise remote. No money will be raised from them.
Mica-1 was acidised and back-flowed. Gas, mixed methane and nitrogen, reached surface after about 12 hours, but ADX says performance is below expectation. The well is shut in to see if it cleans up. This weakens the commercial case for the 2019 discovery.
Half-year to 30 June 2020: net loss A$2.22m versus A$0.86m a year earlier, on A$3.70m revenue from Austrian production, averaging 298 BOEPD. It is the first half with Austrian revenue. Operating cash outflow was A$213k.
Tamaska's subsidiary has declined to proceed with the Parta farm-in, leaving US$1.3m of obligations unpaid. ADX rejects the legal basis, reserves its rights, and has put the 3D seismic mobilisation on hold. This undoes the Tamaska-funded seismic plan.
Tamaska confirms it will not proceed with the Parta farm-in, which would have earned 50% for US$1.5m of 3D seismic spend. It says the earn-in period expired amid approvals delays and it chose not to extend. This is the counterparty's side of ADX's dispute.
Mobilisation for the Mica-1 acidisation and flow test begins 7 September, with about 10 days of operations at roughly Euro 230,000. Pressure gauges show the Pa IV zone rebuilt to about 200 bars. No flow results yet.
ADX signed a one-year consultancy with NGX Commodities, controlled by non-executive director Edouard Etienvre, at A$1,500 a day, half cash and half equity (subject to shareholder approval). It is a related-party arrangement aimed at London and European investor interest.
ADX will acidise and flow test Mica-1 at about Euro 230,000, starting within about 4 weeks and lasting 9 days. Downhole gauges confirm reservoir pressure of about 210 bars, but sampling also recovered drilling mud filtrate. This follows the July testing, which found no flow.
ADX secured a Euro 1.13m (A$1.86m) Austrian state-backed loan for ADX VIE at 0.56% interest, with Euro 120k collateral, a 4-year term and repayment holiday to 30 June 2022. It adds low-cost funding beside the A$3.5m loan notes.
Austrian output averaged 313 BOEPD, up 9% on the March quarter, with about 320 BOEPD forecast for next quarter. Revenue fell 22% as Brent hit US$18.55 in April. Mica-1 was perforated, with reservoir damage suspected and acidisation needed; Mica-2 spud slipped to Q4 2020.
June quarter cash fell to A$3.039m from A$4.76m. Operating cash flow was -A$144k on receipts of A$2.101m; investing outflow was A$1.178m, mostly plant and Romanian exploration spend. The A$3.5m loan notes remain fully drawn, with 50% repayable 26 Nov 2020.
Mica-1 testing paused until about 27 July because new COVID-19 border rules delayed the wireline crew. Wellhead pressure has risen from 780 to 1,650 psi and sampling recovered methane, though also drilling fluids. Acid equipment is sourced, but no commercial flow is proven yet.
Executive Chairman Ian Tchacos presented at a Stockhead oil and gas video conference; the 1 July 2020 investor update slides are attached. The extract shows only disclaimers, so no new figures are visible.
Mica-1 was perforated in the Pa IV gas zone but no gas has reached surface yet. ADX suspects drilling-mud damage near the wellbore and may acidise to improve flow. This is a setback for the 2019 discovery's commercial case.
ADX unwound its March collar hedge for US$28,074 and swapped 40% of Austrian proven output at US$41.77 Brent for July 2020 to April 2021. With the earlier US$50.64 swap, about 80% of 2020 output is fixed, averaging over US$46.
Rig is set up at Iecea Mica-1 and production equipment is being run in. Flow testing is expected to begin the following week. No test results yet; the 20 bscf 2C estimate is unchanged.
AGM presentation describing ADX as a European-focused energy producer. The extract shown is disclaimers and reserves definitions, citing the unchanged July 2019 reserves estimates. No new figures are visible.
26 June 2020security holder rights change● Neutral
ADX lodged its new constitution, approved by shareholders at the 26 June 2020 AGM. The extract shows only the document and its contents list, so the specific changes are not visible.
