Each one in plain English, with the numbers worked through for a shareholder.
18 Oct 2019capital raising announcement● Neutral
Prospectus for the Share Purchase Plan: up to 150m shares at 1 cent to raise up to $1.5m, with one free option per three shares. The offer closes 1 November 2019, as already announced on 14 October.
What it means for a shareholder
150m new shares at A$0.010 to raise about A$1.5m. That's 11% dilution: every existing holder's slice gets 11% smaller. If you held A$1,000 of shares (100,000 at the issue price), your slice goes from 0.00807% to 0.0072% of the company. To keep it you'd need 12,099 more shares - about A$121 at the issue price.
Prospectus for the placement of 200m shares at 1 cent to raise $2m, with one free option per three shares. A general meeting on 6 December 2019 is to approve the options. It documents the already announced raise and adds no new terms evident in the readable text.
What it means for a shareholder
200m new shares at A$0.010 to raise about A$2.0m. That's 14% dilution: every existing holder's slice gets 14% smaller. If you held A$1,000 of shares (100,000 at the issue price), your slice goes from 0.00812% to 0.00698% of the company. To keep it you'd need 16,231 more shares - about A$162 at the issue price.
14 Oct 2019capital raising announcement▲ GoodMajor
ADX secured A$5.5m to fund the Austrian RAG acquisition: a A$2.0m placement of 200m shares at 1 cent and A$3.5m of loan notes (6% interest, repaid over 24 months, with options at 1.8c). A Share Purchase Plan of up to A$1.5m will follow; completion is expected late October to mid November.
At ADX's request, the shares were suspended from quotation pending a capital raising announcement, with the suspension due to end by 7 October 2019 at the latest. This follows the earlier trading pause.
At ASX's request, ADX retracted NPV and resource-value figures from its 6 Sep, 9 Sep and 13 Sep releases, including Iecea Mica value estimates and Austrian flysch and exploration cashflow claims, as lacking a reasonable basis. Shareholders should disregard them, including the earlier US$40m Parta value. An updated presentation was issued.
ASX paused trading in ADX securities pending a further announcement. No reason is given in the notice; a capital raising followed within days (inference).
ADX expects the Austrian RAG acquisition to close within about 4 weeks. Production has met expectations and oil prices rose, so the final price is expected to be about Euro 2.5m less the Euro 0.4m deposit, down from the Euro 4m headline.
Reabold will subscribe 810,811 Danube shares and ADX 540,541, both at £1.00, to fund Iecea Mica-1 testing, Mica-2 planning and 2D seismic. ADX's Danube stake falls to 58.4% (Reabold 41.6%). Second-well options at £1.20 are set.
Good Oil Conference presentation by Chairman Ian Tchacos on the RAG production acquisition and the shift to an onshore European producer. It largely repeats known facts, including the estimated 1 October 2019 closing; no new terms are evident in the readable text.
Half-year report to 30 June 2019 shows a net loss of $856,559 (versus $1,329,050 a year earlier) and operating cash outflow of $1.36m. It restates the Nilde moratorium setback, Tunisia likely deferred, and the RAG Austria acquisition as the new direction.
Iecea Mica-1 deepening is suspended below the 2407 m over-pressured zone because of hole problems. Independent petrophysics and remapping give a 20 Bcf 2C contingent resource versus 6.1 Bcf pre-drill, with 14.5 m net pay. The well is plugged back to 2230 m and will be production tested.
ADX presented the RAG Austrian acquisition as a shift to an onshore European producer: 350 BOPD, 1 million barrels 2P and about A$10m a year revenue. Tunisia is likely deferred or suspended, with a force majeure suspension of Kerkouane requested; Nilde is expected to resume in Q4 2020.
Drilling at 2407 m hit a highly over-pressured zone and a major kick, with well pressure reaching 387 bar. ADX says the well was brought under control with no injuries; a kill operation was still being prepared. Hydrocarbon gas, CO2 and brine returned. This explains the trading halt.
ASX paused trading in ADX securities pending a further announcement. No reason is given in the notice; it relates to the Iecea Mica-1 well update that followed (inference).
Iecea Mica-1 has 7" casing cemented, a high-pressure 10,000 psi blowout preventer installed and heavier mud in use. The shoe is drilled out to 2342 m, and drilling to about 2500 m total depth is next. The ~2400 m 'blow out' horizon is the next zone of interest.
Log analysis on Iecea Mica-1 interprets pay in Pa III, Pa IV (8 m gross, ~20% porosity) and Pa V (about 4 m of thin pay). Pa III and Pa V were not in the pre-drill resource estimate and are described as exceeding expectations; Pa VI is tight. Resource update to follow.
Iecea Mica-1 reached 2335 m MD in the 8½" hole, with gas shows in the Pa III, Pa IV and Pa V sands. The Pa IV sand was the zone that flowed in the historic well. Analysis is pending; logging is complete and 7" casing is next.
Corrected re-release of Drilling Update No. 4: one bullet wrongly said Pa IV and should read Pa V for the 2140-2163 m interval. No other change to results.
Iecea Mica-1 reached 1346 m on day 13 after running 9⅝" casing; drilling continues. The first target, the Pa IV gas sand, is expected in about 4 days, and the program is now about 29 days after spud. No hydrocarbon results yet.
Iecea Mica-1 was spudded on 6 August 2019 in Romania. The first target, the previously flow-tested Pa IV sand, is expected in about 13 days, with the full program taking about 27 days. Reabold funds the well (about US$3m).
June quarter: Parta licence extended and the farm-in completed, Austrian deal signed with a Euro 400k deposit paid and closing expected 1 October. Noble's rig is unavailable for Dougga Sud, so ADX is seeking to defer work obligations with ETAP. Nilde stays on hold.
June quarter cash was $2.635m, of which $1.91m is held by Danube. Operating outflow was $766k. Reabold's $695k subsidiary share subscription was the only inflow. Next-quarter outflow is estimated at $2.77m, including $730k for the Austrian deposit and costs.
Iecea Mica-1 is ready: road built, equipment delivered and conductor pipe installed. Rig mobilisation was to start 29 July, with spud expected the week of 4 August. Resource figures are unchanged.
17 July 2019farm in farm out completion▲ GoodMajor
The Parta Energy farm-in was completed, with conditions satisfied. Parta Energy funds the first US$1.5m of about 100 km2 of 3D seismic for 50% of the Parta Exploration License, excluding the Iecea Mare appraisal area. Seismic is expected to start in November 2019. This resolves the April heads of agreement.
16 July 2019capital raising announcement● NeutralMajor
ADX raised A$1.205m through convertible loan notes to fund the Austrian deposit and costs. Terms: 6 months, 10% interest, convertible at the lower of A$0.007 or any later raising price. Directors Tchacos, Fink and Brown contributed $150k in total.
Presentation on the Austrian Zistersdorf and Gaiselberg acquisition, repeating the 2 July announcement: 350 BOEPD, Euro 4m price, closing expected 1 October 2019. No new terms are evident in the readable text.
2 July 2019asset acquisition disposition▲ GoodMajor
ADX signed binding deals on 1 July to buy the Zistersdorf and Gaiselberg fields in Austria from RAG for Euro 4m. The fields produce 350 BOEPD; closing is due about 1 October 2019. A 10% deposit is payable now. A new direction, moving ADX towards production.
