Australis completed the A$100m placement of 434.78 million shares at $0.23 to fund the Encana TMS purchase. The price was adjusted down to US$68.3m, mainly for US$10.8m of net oil sales since November. Post-deal net cash is US$22m; March production about 1,700 bbl/d.
What it means for a shareholder
435m new shares at A$0.230 to raise about A$100m. That's 38% dilution: every existing holder's slice gets 38% smaller. If you held A$1,000 of shares (4,348 at the issue price), your slice goes from 0.000609% to 0.000378% of the company. To keep it you'd need 2,646 more shares - about A$609 at the issue price.
2016 annual report repeats known results: year-end net cash A$29m, 2C resources of 26.4 million barrels (TMS) and 458.5 Bcf (Portugal), and the Encana deal. New: close expected mid-April 2017, with a multi-well TMS drilling program expected from 2018, possibly with partners.
Corporate governance statement for 2016 describing how the company follows ASX governance recommendations. Scudamore's election is to be put to the next AGM. No business news.
28 Feb 2017asset acquisition disposition▲ GoodMajor
Australis agreed to buy all of Encana's Tuscaloosa Marine Shale assets for US$80m (before adjustments), adding 62,000 net core acres and 1,900 bbl/d of production, taking its core position from 19,000 to 81,000 net acres. Funded by a conditional A$100m placement at $0.23.
ASX lifted the suspension from the start of trading on 28 February 2017, after the material acquisition announcement. Resolves the suspension that began on 27 February.
27 Feb 2017listing compliance notice● NeutralMajor
At its own request, Australis shares were suspended from 27 February 2017 pending an announcement about a proposed material acquisition, following a trading halt on 23 February. The company expects to announce the deal by 28 February.
2016 net loss was $9.529m (2015: $2.285m), including $4.096m non-cash option expense and $813k of IPO and listing costs. TMS position is 38,000 gross acres. Scudamore's 420,000 options await shareholder approval at a meeting expected in the first half of 2017.
December quarter: closing net cash $29m, no debt, $3.4m forecast spend next quarter. TMS grew to 38,000 gross acres. Repeats the doubled resource estimates; several US acquisition opportunities remain under review.
Independent estimates roughly doubled: TMS best-estimate net 2C contingent resource rose 104% to 26.4 million barrels (about 19,000 net acres), and Portugal rose 96% to 458.5 Bcf. Ryder Scott replaced the earlier engineer for the TMS assessment.
350,000 unlisted $0.35 options lapsed after recipients ended their engagement. Shares on issue are 341,556,866, with the remaining options listed. Administrative.
Stephen Scudamore, a former KPMG partner, joined the board as independent non-executive director from 30 November 2016 and will chair the Audit and Risk Committee. He is proposed 420,000 options, subject to shareholder approval.
September quarter: closing cash about $30.8m, no debt, $2.6m forecast spend next quarter. TMS holding rose by 740 net acres to 17,600 net acres (35,200 gross). Search for further US acquisitions continues.
First half 2016 loss was $4.89m, including $0.92m of IPO costs and $2m of non-cash option expense. Cash was $32m at end of August 2016. The TMS purchase closed in two tranches (January and May), and a $10m placement at $0.22 was done in May.
September 2016 corporate presentation describing a counter-cyclical strategy of buying quality onshore assets, mainly in the US, and founders from Aurora Oil & Gas. Repeats known facts; the available text shows no new figures.
ASX confirms admission to the official list on 21 July 2016. Quotation of 279,585,663 shares at $0.25 starts 25 July 2016. Repeats the admission notice with no new information.
Corporate governance statement against ASX recommendations. One departure noted: the remuneration and nomination committee has two members, Alan Watson (independent chair) and Jon Stewart, rather than three. Administrative.
ASX admitted Australis Oil & Gas to the official list on 21 July 2016, with trading to start 25 July. The IPO raised $30 million by issuing 120 million shares at $0.25; 279,585,663 shares are quoted, with escrowed shares and options.
Terms of the Employee Equity Incentive Plan, allowing shares, options and performance rights to eligible employees. Standard administrative document with no new figures beyond the plan's rules.
Admission application form listing corporate details: incorporated in WA on 12 November 2015, CEO Ian Lusted, chairman Jonathan Stewart, auditor BDO, AGM usually in May, no dividends planned. Administrative.
Financial statements of subsidiary Australis Europe Pty Ltd for 2014 and 2015, released pre-listing. Notes mention Portuguese oil and gas concession rights; figures are unreadable.
Securities trading policy setting insider trading rules and blackout periods for directors and staff, starting 23 March, 23 June, 23 September and 23 December each year. Standard governance document with no business news.
Accounts for the three months to 31 March 2016, released pre-listing. Numbers are unreadable in the text; notes mention a Tuscaloosa Marine Shale lease acquisition due to complete in July.
Prospectus dated 29 June 2016 for the offer of 120 million shares at $0.25 to raise $30 million, flagged as speculative. Already summarised by the listing notice; the text provided shows no new asset details.
Top 20 holders list as at 20 July 2016: the top 20 hold 64.59% of shares. Largest are JP Morgan Nominees (11.20%), JK Stewart Investments (9.78%) and Epicure Superannuation (7.66%). Administrative disclosure.
Audited accounts for 12 March 2015 to 31 December 2015 were released before listing, with unreadable figures. The notes say the company was incorporated in November 2015, acquired Australis Oil & Gas Pty Ltd (Portuguese concession rights) in December 2015, and agreed to acquire a Tuscaloosa Marine Shale interest.
Administrative list of documents released before quotation (shareholder distribution, top 20 holders, prospectus, constitution, accounts, incentive plan, governance policies). It carries no new business information itself.
Shareholder distribution table as at 20 July 2016: 432 holders and 341,556,866 shares, with 227 holders owning 97.01% of the shares. Administrative pre-quotation disclosure.
