AXP Energy Limited

The 320kW gas-to-power unit is operating with 99% uptime. Charlie #1 flowed 11 bbl of oil in a one-hour test, choked to ~100 psi; the company says this is not a stable daily rate. A 10-day flow test follows.

flow test result

AXP and Simpora mutually terminated the Syria Block 9 farm-in, citing timing against AXP's Oklahoma priorities. Simpora keeps the US$100,000 deposit; no further payments are due. This reverses the June 'transformational' deal, with the US$1m payment never made.

material agreement termination

AXP will install a 320kW generator at the Edwards Lease in August, fuelled by Charlie #1 gas, powering ASIC miners owned by Pathfinder Partners (formerly Blackhart). AXP sells the gas and has an option to buy the generator within 90 days. Revives the Oklahoma gas-to-power aim.

material agreement

AXP secured a right to earn 25% of Syria's 10,039 km² Block 9 from operator Simpora Latakia (75%). It paid a US$100K deposit, owes US$1m within 60 days, and plans two wells in 2027. Resource figures are historical prospective estimates from former holders, not AXP's.

farm in farm out agreement

Charlie #1 delivered an initial 24-hour rate of about 35 bopd and 60 Mcf/d gas, around 45 boe/d, with ~700 bbl/day of fluid pumped. Oil is still not seen in the tubing. First oil sale was a 160-barrel tanker, about US$14,500 net to AXP. Rate is modest against the 100+ bopd offset-well figures cited earlier.

well test result

This replaced the earlier A$800,000 announcement with a A$946,000 placement of 78.83M shares at A$0.012, a 6.24% discount to the 15-day VWAP. It lifted shares on issue to about 454.7M and funds Oklahoma development and new lease or farm-in opportunities.

capital raising announcement

Tranche 2 of the placement settled on 13 October, raising A$947,409.93 after costs, completing the A$2.7M raise. Charlie #1 fracturing is set for 20 October and Charlie #2 is being permitted on a 40-acre offset.

capital raising announcement

At 1 July 2025, proved reserves (1P) rose 19% to 76 Mboe, from gas booked at Pathfinder 2 and JW Powell. Contingent resources (2C) fell 66% to 69.5 MMboe, as AXP chose not to extend a Colorado sub-lease.

resource reserve update

Charlie #1 reached 4,725 feet with oil and gas shows over about 290 feet of Mississippi Lime and Chat, plus Woodford Shale and Wilcox Sands. Wireline logs and completion decisions are pending, so commerciality is not yet established.

drilling result

AXP will consolidate its shares 25-to-1, cutting about 8.36bn shares to about 334M, subject to shareholder approval on 8 October 2025. The 45M options become 1.8M with exercise price rising from A$0.003 to A$0.075. Mechanical; value per share scales up.

security holder rights change

Charlie #1, AXP's first Oklahoma well, spudded on 17 September 2025, with surface casing set at 260 feet. It targets 4,720 feet in 7-10 days across stacked Mississippian and Pennsylvanian zones. AXP holds 100% working interest and 81.25% net revenue interest.

drilling spud

AXP secured two leases covering 1,400 acres in Kay County, Oklahoma, with 30+ vertical well locations, targeting 6,400 acres. The board will focus on scaling up in Oklahoma, citing faster, cheaper permitting than Colorado; two wells are planned within 60-90 days.

asset acquisition disposition

AXP has firm commitments for a A$2.7M placement of 2.7bn shares at A$0.001 (nil discount to 15-day VWAP), with 1-for-3 free options at A$0.002. Funds go to Oklahoma leases, two vertical wells and bitcoin gas-to-power. Tranche 2 needs shareholder approval.

capital raising announcement

Pathfinder #1 is on pump and producing from the Greenhorn Formation, a first for the Florence leases, with 60 barrels of oil in 7 days. Colorado permits take 9-12 months, so AXP is reviewing other US states for faster sites, a shift from the earlier Colorado-only expansion plan.

production update

The 14-day gas-to-power trial delivered about 1.5MW at roughly 85% uptime, above 90% since. NASDAQ-listed bitcoin miner BitFuFu will supply miners for the next phase, with AXP aiming for 25MW by end of 2025, starting with a 5MW first-site expansion.

material agreement

Non-executive director Dan Lanskey becomes Managing Director and CEO from 1 March 2025, replacing Tim Hart, who steps down and will be available as a consultant. Lanskey targets 25MW of gas-fired power by end of 2025 and more oil production.

director officer appointment

Following Colorado permits, the first two modular data centres are online at Pathfinder #2, running 515 Antminers. Two generators produce 1.2MW from the well's gas, and the well is producing Niobrara oil for the first time on gas flow. A 14-day reliability trial is under way.

production update

AXP received firm commitments to raise A$1.25M through a two-tranche placement of about 833.3 million shares at A$0.0015, a 9.2% premium to the 15-day VWAP. Directors committed A$165,000, subject to shareholder approval, and funds go to the data-centre roll-out and working capital. It was the first placement since November 2020.

capital raising announcement

Dan Lanskey was appointed non-executive director effective 5 December 2024. He brings over 20 years of equity capital markets experience and was founder and CEO of Austex Oil, which drilled over 50 wells in Oklahoma and Kansas.

director officer appointment

AXP signs a binding Joint Development Agreement with Blackhart Technologies, its first data-centre customer, to sell gas-to-power at Pathfinder. Initial term is three years; AXP earns from gas-to-power supply, maintenance and uptime bonuses. Resolves the search for a customer; first two modular data centres are due this month.

material agreement

At 1 July 2024, Colorado-only proved and probable reserves are 64 thousand barrels of oil, with gas reserves now zero because the gas market is uncertain. All gas moves into contingent resources of 202 MMboe (about 744 Bcf gas, 78 million barrels oil), down 5% on last year's 212 MMboe.

resource reserve update

The first generator has run over 60 days at above 95% uptime. A second Gen-Tech generator is on site for the Amerigo Vespucci well, taking capacity to 1,500kWh. Elite Mining has left the site; AXP bought its infrastructure cheaply and now targets data-centre power customers.

production update

AXP signs a lease-to-purchase deal with Gen-Tech for a 750kW gas-fired generator at Pathfinder, run for 90 days to gauge gas and oil flow and restart oil sales. This follows the 2 April plan; electricity buyers are still being sought.

production update

Post-sale Colorado plan for the 100%-owned Pathfinder Field: test the Greenhorn Formation, never tested in the Florence field, and sell associated gas to wellhead generators so more oil can flow. Colorado oil output fell from 3,715 bbl (Apr-Jun 2023) to 2,478 bbl (Oct-Dec).

regulatory community update

The Mountain V sale is completed and all funds received: US$4m plus oil in tank inventory, with closing adjustments due by 7 May 2024. AXP is now a Colorado-focused company; it aims to lift Pathfinder output, keep costs low, and preserve cash for acquisitions. The announcement misstated an inventory date as 2024.

asset acquisition disposition

Shareholders overwhelmingly approve the US$4m sale of the non-Colorado assets to Mountain V. Closing is expected by 8 February, with the final US$2m due then. The chairman promises a fuller Colorado plan later in the month.

asset acquisition disposition

The full sale agreement with Mountain V is signed: US$4m for the Appalachian and Illinois assets, plus US$876,448 for oil in tanks, staged with US$1m already prepaid. Shareholder vote expected late January 2024; the ASX six-month window to show sufficient operations still applies.

asset acquisition disposition

Simon Johnson resigns as chairman but stays on as a non-executive director; Sam Jarvis is appointed chairman. Johnson had been chair since April 2021, so this is a change of chair shortly after the Mountain V sale announcement.

director officer appointment

Reserves at 1 July 2023: 2P down 10% to 6.54 MMboe (from 7.27), with 1P at 5.08 MMboe. Low prices pushed all proved undeveloped reserves into contingent resources. 2C contingent resources are about unchanged at 212.07 MMboe. This reverses last year's 14% gain.

resource reserve update

AXP signs a binding letter to sell all its Tennessee, eastern Kentucky, Virginia and Illinois Basin assets to Mountain V Oil & Gas for US$4m, subject to adjustments. This is a sale of the main undertaking needing a shareholder vote, targeted for 30 November 2023. It leaves Colorado as the remaining project, and ASX has given six months to show sufficient operations or face suspension.

asset acquisition disposition

Half-year to 31 December 2022 shows a loss of US$4.52m (prior year US$718K loss), driven by NGL blending costs and a US$3.68m impairment of the Colorado Cimarex Lease. Sales revenue rose 57% to US$13.03m; net assets fell 27% to US$12.15m; cash US$1.95m. Elite crypto site expected back in March.

half year report

Greg Grotke, formerly of Noble Energy, is appointed Interim Chief Operating Officer from 7 November 2022, overseeing operations, sales and business development. This follows the new CFO appointment; his first task is an operations review.

director officer appointment

Gas sales to Elite Mining in Colorado have begun, with the first two Elite units running on Pathfinder #2 gas, initially about 200 Mcf/day. Pathfinder is flowing over 10 BOPD. This ends Elite's revenue-nil period, though volumes are modest and a third unit is still to come.

production update

Reserves as at 1 July 2022: 2P up 14% in nine months to 7.27 MMboe (from 6.37), with probable reserves up 89% and 1P up 2% to 5.65 MMboe. 2C contingent resources unchanged at 211.95 MMboe; 3C includes 237 Bcf of Appalachian gas. Delivers the flagged reserves report.

resource reserve update

Bradley Mervis, previously Group General Manager – Finance, becomes CFO from 16 September 2022, replacing Lonny Haugen, whose outside firm had provided CFO services. This completes the move of all finance functions in-house, a thread open in earlier updates.

director officer appointment

The DPI-2605 Illinois Basin re-completion initially flowed 310 BOPD and peaked at 555 BOPD, but was choked back and now pumps ~50 BOPD and 300 Mcf/day of gas. This resolves the open question on rates; 9 more drilling locations are identified on the lease.

well test result

AXP rolled forward a gas supply deal with a major customer at US$5.446/dth, up 41% from US$3.841/dth, for 5,000 dth/day to 31 Oct 2022 and 3,000 dth/day to Mar 2023. Workovers on 9 wells lifted output from leases on reliable infrastructure by ~250 Mcf/day to ~1,731 Mcf/day in May.

material agreement

AXP and Elite Mining received Colorado permits for gas-fired power generation for crypto mining on AXP's Colorado gas, for the first three mobile units. This is the first monetisation of Pathfinder gas, following the September 2021 agreement and resolving the permitting delay.

regulatory community update

Christian Paech, a former General Counsel of Santos for about ten years, was appointed an independent non-executive director effective 1 January 2022. He is based in Adelaide and is also a non-executive director of Barton Gold.

director officer appointment

First reserves booking including the MHP and Trey acquisitions: 2P reserves rise to 6.37 MMboe from 0.124 MMboe. 2C contingent resources rise to 211.95 MMboe from 192.93 MMboe. Delayed reports now delivered; figures are for current producing formations only.

resource reserve update

AXP agreed to buy Newtak's 50% of Kentucky Exploration LLC for US$50,000 cash, ending the 50/50 joint venture formed in 2010. It gains full ownership of 44 oil wells; closing is due by end November, and the Dacy Lease is a drilling target.

asset acquisition disposition

AXP has formed an in-house drilling division to run an internally funded 4+4 vertical well program on four Illinois Basin leases, targeting 2,150-3,600 feet. Permits are pending, with drilling due in the coming weeks, aiming to lift oil production beyond workovers alone.

drilling scheduled

September quarter net revenue was A$5.73m, up 31% on June's A$4.39m, with the first cashflow-positive quarter (A$301k) after one-offs. Cash is A$4.07m after option conversions. The Elite Mining crypto-mining units are on site, with operations expected within weeks.

quarterly activities report

The Western Australian Supreme Court granted AXP's orders confirming that share sales were not invalid despite missed cleansing notices on issues since 2013. AXP expects trading to resume on 18 October 2021, ending the suspension that began 16 August.

listing compliance notice

Director Peter Crown, former chair and head of major shareholder Resilient Investment Group, resigned immediately to pursue other interests. AXP and Crown settled all outstanding claims, which appears to close the earlier dispute with RIG, though the text names no amounts.

director officer appointment

AXP paid the final US$450,000 from cash, completing the US$1.9m purchase of about 115 Trey oil wells in Indiana, Kentucky and Illinois begun in October 2020. Management will move to the Lexington team. A reserves and resources report is due later this month.

asset acquisition disposition

ASX has flagged possible breaches of the secondary trading provisions of the Corporations Act. AXP will seek court orders to protect shareholders, and the suspension continues until they are granted. It expects orders before 24 September.

listing compliance notice

AXP signs a binding Heads of Agreement with Elite Mining to supply stranded Colorado gas, starting at 400 Mcf/day, to power cryptocurrency mining units. Upfront capex is US$30,000; expected gross revenue is US$35,000-60,000 a month, mostly from oil freed up from shut-in wells.

material agreement

At its own request, AXP is suspended from quotation pending an announcement of a material Heads of Agreement. The company is consulting ASX on how the Listing Rules apply to it. Shares cannot trade until this is resolved.

listing compliance notice

A legacy gas contract covering about 35% of production (4,000 MMBtu/d) was renegotiated from US$2.76 to US$3.55 per MMBtu, adding over US$100,000 a month in revenue. Most other gas remains uncontracted and sold at spot prices.

contract award

Fremont is asking the NSW Supreme Court to set aside two statutory demands totalling A$303,600 from Resilient Investment Group, controlled by director Peter Crown, and the largest shareholder per earlier context. The board, excluding Crown, rejects the claims, saying it knew nothing of them until May.

other

Total production averages about 2,300 BOE per day. Gas at the Magnum Hunter leases rose from 8.0 to about 9.57 MMcf/d, meeting the 20% target in under 60 days. Oil is ~300 bbl/d, but Colorado, Kentucky JV and Trey gains are not meeting internal targets.

production update

Simon Johnson, a Perth-based former executive at offshore drilling contractors, becomes Non-Executive Chairman immediately. Peter Crown, chairman since before the Magnum Hunter deal, stays on as a Non-Executive Director.

director officer appointment

Completes the 100% acquisition of Magnum Hunter Production, effective 26 February 2021, so its revenue counts from then rather than 9 March. Says production is tracking above the 9 March level. Resolves the pending acquisition announced earlier in the month.

asset acquisition disposition

Fremont will buy 100% of Magnum Hunter Production for US$425,000: ~1,300 gas wells in Kentucky, Virginia and Tennessee, producing ~1,700 BOEPD and ~A$1.01m monthly gross revenue. This is a large step up from the ~130 BOPD oil base, with close expected by end March.

asset acquisition disposition

Raises A$1.8m placing 600,000,000 shares at A$0.003, with a one-for-two option at A$0.005 for 18 months (subject to shareholder approval). Funds go to working capital and workovers. Production is about 131 barrels a day, across roughly 170 wells.

capital raising announcement

Shares are reinstated to quotation from 18 December 2020 after the reissued FY2020 accounts were lodged. Trading resumes after the suspension that began on 2 November.

listing compliance notice

Withdraws and reissues the FY2020 accounts after giving the auditor more evidence on going concern, including deferred creditor terms and ability to raise capital. Only notes 2 and 32 change. Intended to lift the suspension that followed the disclaimer.

financial restatement

ASX suspends Fremont shares from quotation because the auditor disclaimed an opinion on the FY2020 accounts. Shareholders cannot trade until the accounts issue is resolved.

listing compliance notice

Directors confirm Grant Thornton issued a disclaimer of opinion on the FY2020 accounts over going-concern uncertainty; current liabilities exceeded current assets by A$6.38m. They dispute the concern, citing the note conversion, deferred payables of A$1.62m and the Trey purchase, and aim for a clean opinion later.

annual report

Fremont completed the Trey Illinois Basin purchase and took ownership on 1 October 2020 for US$1.9m (US$1m on signing, US$900k by 2 April 2021). The leases hold about 115 oil wells, many inactive, producing about 71 barrels a day. Kentucky and Colorado workovers lifted output to about 45 barrels a day.

asset acquisition disposition

Unaudited FY2020 results, with audit deferred under ASIC relief: net loss A$9.16m including A$6.10m of impairments (mostly Powell and Vespucci write-downs). Revenue fell 44% to A$597k. Cash was A$1.29m at 30 June; the A$3.36m note converted in September.

annual report

Two of 14 planned Colorado workovers are done and output has risen to about 30 barrels a day from about 20. Unsold inventory is about 2,434 barrels (about US$103k). Drilling of new Colorado wells has been suspended; completing the Trey acquisition is a priority.

production update

Non-binding letter of intent to buy Illinois Basin producing leases from Trey Exploration, producing about 71 barrels of oil a day. Proposed price is US$1m by 31 Aug 2020, US$500k by 1 Jan 2021 and US$400k by 1 Apr 2021, subject to due diligence. Signals a strategy shift to buying cheap producing assets; some production has restarted.

asset acquisition disposition

A$3m placement from three family offices at A$0.003 per share with a free one-for-one option at A$0.003 (12 months). Convertible noteholders agree to convert debt at A$0.003 versus the original 0.7c; the undrawn portion of the A$6m facility (A$3.025m drawn) is cancelled. Subject to shareholder approval; funds are for working capital and possible US acquisitions.

capital raising announcement

Colorado and Kentucky production is temporarily shut in because of depressed WTI crude prices, and a cost reduction programme has begun. Gas offtake talks are said to have progressed, though still unsigned. The shut-in follows the earlier flaring-limited Vespucci production.

production update

Executive Director Andy Lydyard resigns after about seven weeks (joined 4 Feb 2020), staying on as a consultant for the Colorado and Kentucky assets. Reverses the February appointment meant to lift Pathfinder oil output; no reason given.

director officer appointment

Colorado oil executive Andy Lydyard joins as Executive Director to lift Pathfinder oil output. He previously led the field's former owner, Comet Ridge Resources, completing 23 Pierre producers and reaching a peak of 1,400 BOPD. Pay: US$5,000 a month plus A$48,000 a year director fees.

director officer appointment

Guy Goudy, an executive and director for 11 years, resigns. Tim Hart leaves the board for an operations-focused executive role. Nigel Hartley resigns after a short tenure. Vespucci is online with rising oil flows after unforeseen delays; a geologist-led senior hire is expected.

director officer appointment

Board overhaul: Peter Crown, whose Resilient Investment Group provided the A$6m convertible loan and is the largest investor, becomes Non-Executive Chairman. Ex-Oil Search CFO Nigel Hartley joins. Guy Goudy becomes Executive Director – Corporate; Andrew Blow leaves the board.

director officer appointment

The updated Gustavson report lifts Pathfinder's 1C (P90) contingent resource to 182.4 million boe: oil up 12% to 60.6m barrels, gas up 13% to 609 Bcf. NPV10 of reserves rose 98% to US$34m. This delivers the upgrade flagged since September; the new acreage is excluded.

resource reserve update

Fremont agreed to acquire an adjoining 5,990-acre field, taking Pathfinder to 25,995 acres (+21%) at 100% working interest. Terms are confidential: minimal upfront cash plus royalty payments. Closing is expected by end of 2019. A 1,660-acre non-core block will not be renewed.

asset acquisition disposition

3D seismic interpretation identified nine targets in the shallow Pierre Formation (~4,000 ft). Permits are lodged for a three-well programme, with two wells planned to spud this quarter. Vespucci remains shut in awaiting its production permit; industry partners are being assessed for Niobrara joint development.

drilling scheduled

Vespucci #1 recorded a 24-hour IP of 273 boe/day (82 bbl oil and 900 Mcf gas), above Powell's 220 boe/day. Gas was choked back. Production permit pending; the company says the well roughly doubles field oil output. This resolves the long-awaited Vespucci result.

flow test result

Fremont secured a firm A$6m convertible loan facility (minimum A$4m, at the company's discretion) from major shareholder Resilient Investment Group. It is secured over all assets, converts at 0.7c and costs 1.5% a month for 4 months then 2.5% a month, funding the rest of the 2019 drilling programme.

debt financing

Completion has begun on Vespucci #1, with a multi-stage frac of the Niobrara and Codell. Greenhorn stimulation is dropped because unstable shale above it risked the main Niobrara target. This narrows the earlier plan to stimulate all three zones.

drilling progress report

Vespucci #1 logs indicate oil and gas in three zones: Niobrara 546 ft, Greenhorn 92 ft and Codell (stated as 77 ft in the headline, 72 ft in the text). Free oil continues to enter the well. Stimulation of all three zones is under assessment; no flow rate yet.

drilling result

Vespucci #1 intersected crude oil: 154 of 199 joints of drill string (4,620 ft) came out covered in oil. The company sees early signs of a fracture network producing oil under pressure. Logging expanded to all four Niobrara benches, Codell and Greenhorn. No flow rate yet.

drilling result

Amerigo Vespucci #1 reached its 5,977 ft target depth, with strong oil and gas shows on mud logs through the bottom 1,000 ft. Logging starts within 24 hours and completion later this week. These are drilling shows, not a flow result.

drilling result

Completed a A$5.1m placement of 395.2m shares at $0.013, with Bell Potter as lead manager. Tranche 1 (318.3m shares) is issued; Tranche 2 (76.9m) needs shareholder approval at a May meeting. Funds go to Vespucci, 3D seismic, a resource update and gas sales work.

capital raising announcement

JW Powell #23-25 tested at an initial 220 barrels of oil equivalent per day (peak gas 2.1 MMcf/d, choked back), about 80% gas and 20% oil. Schlumberger's new completion technique was used. Vespucci's Niobrara drilling is planned from mid-April. This confirms the Niobrara is productive at Pathfinder.

well test result

JW Powell #23-25 is flowing crude oil to tanks with a 15-foot gas flare, after about 35% of frack fluid was unloaded. An initial production rate is expected next week. First sign the Niobrara can produce at Pathfinder, but no rate is given.

flow test result

JW Powell #23-25 reached 6,072 feet, with oil and gas shows through a 537-foot-thick Niobrara and oil-covered sidewall cores. Fracking is due late January. This is encouraging but untested; no flow rates yet. It is the first well in section 35 of the 21,500-acre property.

drilling result

Amerigo Vespucci #1 spudded on 9 November and was drilling at about 500 feet. It is a vertical well targeting the Niobrara B and C benches, the first of the 2018 two-well program funded by the September placement.

drilling spud

Raises A$3.75m through a two-tranche placement of 535.7m shares at $0.007, with one free 2c option per two shares. Funds two 2018 Pathfinder wells, Vespucci #1 spudding early October. Tranche 2 (362.9m shares) and the options need shareholder approval; shares would reach about 1.23bn.

capital raising announcement

Gustavson's independent report lifts Pathfinder's P90 contingent gas resource 145% to 540 Bcf and oil 55% to about 54-55m barrels (from 220 Bcf and 35m). It likens the geology to the Wattenberg Field. Delivers the upgrade promised on 5 July.

resource reserve update

Fremont leased a further 2,702 net acres, lifting its 100%-owned Pathfinder Field to 19,500 net acres, on confidential terms of exploration commitments and royalties. The Gustavson resource report will now include this acreage; more leasing is under way.

asset acquisition disposition

Marco Polo #1 gas well flowed initially at 1.5m cubic feet a day, taking the three recent tests (with C11-12 and Columbus #1) to 4.13m cf/day. Fremont engaged Gustavson to upgrade the 220 Bcf P90 resource; gas sales talks are described as advanced. Initial rates only.

flow test result

Columbus #1 gas well, drilled in 2016, flowed initially at 1.03m cubic feet a day; with C11-12 the cumulative rate is 2.63m cf/day. Well is shut in pending a gas sales agreement, which is still not binding. Talks continue with Kinder Morgan and local buyers.

flow test result

Pathfinder C11-12 horizontal well, the only Niobrara producer, flowed initially at 1.6m cubic feet of gas a day plus 50 barrels of oil after a workover. Fremont is talking to Kinder Morgan about a pipeline connection 10 miles away; flow rate is initial only.

flow test result

Colorado production averaged 105 bopd over 30 days from 21 wells, up 43% from 73 bopd the prior 30 days, after workovers on eight wells. Hits the 100 bopd target; company expects to be cash flow positive this quarter at about US$60 oil.

production update

The share purchase plan closed raising $518,245 at $0.007 with attaching 2c options, or $548,245 with directors' participation. Options need approval at a May general meeting. Company says it will reach 100 bopd next quarter; gas sales talks continue.

capital raising announcement

Fremont completes a A$2m placement of 286m shares at $0.007, with one free 2c option per two shares (to March 2020). A further share purchase plan of up to A$500,000 is planned. It is left with only a US$250,000 facility at 6%. Delivers the equity raise flagged on 12 December.

capital raising announcement

After the Bird setback, Fremont cut staff pay 55% (monthly employee costs from US$77,000 to US$35,000). Directors take fees in shares, and it has begun selling its 50% Kentucky wells. The board resolved on 9 December to raise equity; size and price not given. Production is 70-80 Bopd.

capital raising announcement

Remediation of Bird #13-18 failed: an under-pressured fracture zone creates a vacuum that blocks flow testing. The well will be shut in over winter, with attempts to resume in April 2018. Resolves the 9 November remediation plan unsuccessfully.

drilling result

Bird #13-18 cannot yet produce because of an under-pressured fracture zone that appears to be draining oil. Capillary Energy will fund remediation in exchange for a 5% net revenue interest. Work is to start within 7 days, a setback after the 30 October results.

farm in farm out agreement

Bird #13-18 mud logs confirm three oil zones totalling 729 ft, with a maximum oil column of 1,963 ft. Completion continues as pressures have not stabilised; no flow rate yet. Follows the October reports of oil shows and the reinstatement after suspension.

drilling result

Bird #13-18 reached target depth in the Sharon Springs formation, with oil shows throughout the bottom 1,000 ft of the Pierre. A slotted liner is being prepared, and first flow rates are expected within two weeks. Drilling remains on budget at US$400,000.

drilling result

Bird #13-18 has intersected crude oil in the upper Pierre formation, flowing to portable tanks, with about 1,000 ft still to drill. The company calls it a discovery on the western flank, about 1 km west of the 2017 Magellan well. The C11-12 Greenhorn test is paused to free crew.

drilling result

Second tranche of the July placement is completed after shareholder approval, taking the total raised to $2,078,000. Funds go to Pathfinder development drilling and working capital. Completes the raise announced 11 July (originally A$1.7m at 2c).

capital raising announcement

Bird #13-18 has spudded at Pathfinder, the first well of the 2017 development program, targeting about 4,000 ft. Drilling is expected to take four to six weeks.

drilling spud

Capillary Energy will fund 100% of re-entering the C11-12 well to test the deeper Greenhorn Formation by radial jet drilling, earning a 5% net revenue interest if productive. Independent analysis estimates 9.53m barrels of oil in place per square mile. Bird #13-18 drilling starts this week.

farm in farm out agreement

Raises A$1.7m placement at 2c a share (48.9m shares in Tranche 1), with one free 4.5c option per two shares. A further 50m shares need approval at an August meeting. Funds go to Pathfinder drilling; total shares could reach 297m.

capital raising announcement

Updated Gustavson report lifts Colorado reserves value (NPV10) 126% from February to A$20.54m, with reserves now assigned over 21% of the 17,698 acres. P90 resource is 34.9m barrels of oil and 220 Bcf gas. Company is in talks on senior debt and plans 3-5 wells this year.

resource reserve update

Austin secures an A$860,000 (US$650k) loan facility from ANB Bank for field operations and confirms the Florence purchase has completed. It says it is well advanced on a much larger project financing to speed 2017 drilling.

debt financing

Austin plans to seek approval to rename itself Fremont Petroleum Corporation and consolidate shares 10-for-1, cutting 1,975m shares to about 197.5m. Says exploration of the Pierre is complete and focus is Pathfinder development; a strategic review of non-core assets is planned.

security holder rights change

Austin signs the purchase agreement for Incremental Oil and Gas (Florence) LLC at US$2m, with US$200k deposits paid. Closing is expected within 50 days. It would then hold 100% of 18,208 Colorado acres; Incremental keeps a 2.5% Niobrara royalty.

asset acquisition disposition

Shortfall from the priority offer placed: A$1m (166.7m shares at 0.6c) on top of A$576,158 raised, taking the offer past A$1.5m. With the December placement, company says the Florence purchase is fully funded. Each share gets a free 1:4 2019 option.

capital raising announcement

Gustavson's maiden Pathfinder report assigned 3P reserves of 1.148m barrels of oil and 451 MMcf of gas over 1,800 acres (11% of the project), with an NPV of US$16.1m. It also estimated P90 contingent resources of 30.5m barrels of oil and 187.4 Bcf of gas.

resource reserve update

Patersons terminated its underwriting of the priority offer after the share price closed at 0.5c on 16 December, below the 0.6c trigger. The offer now has no minimum, and the A$1.7m placement alone may not cover the US$2m Florence purchase. Any shortfall may need another placement.

capital raising announcement

Prospectus offers eligible shareholders up to 250m shares at 0.6c (about A$1.5m, plus A$1m oversubscriptions) with one free option per four shares, plus 70.8m placement options and 20m contractor options. Patersons underwrites; all subject to shareholder approval. Funds the Florence acquisition.

capital raising announcement

Austin agrees to buy Incremental Oil and Gas (Florence) LLC for US$2m: 2,436 Florence Oilfield acres, 22 wells, ~52 bbl/d, taking Colorado holdings to 18,208 acres. Funded by an A$3.2m raising at 0.6c; closing is 6 March 2017.

asset acquisition disposition

Non-binding MOU with Lionheart Refining & Recycling to sell Pathfinder gas to Lionheart-funded turbines, restarting the shut-in 2012 C11-12 Niobrara well (up to 1 Mmscf/d) in the first half of 2017. Also plans a 1,500 bbl/d refinery, viable only above 500 bbl/d.

material agreement

Magellan #1 oil is now being trucked to Suncor's Commerce City refinery under completed sales agreements, with first revenues expected shortly. Company says the crude is light sweet (API 35-37, sulfur <0.1%) with no water. Weatherford cuttings analysis is underway; field ramp-up is planned from 2017.

production update

Magellan #1 is on production at an initial 98 barrels of oil a day plus gas and no water, the first Pathfinder oil flow after the May 790ft oil column. Company cites a 127% IRR and US$1.77m NPV at US$45 oil; these are its own estimates.

production update

Austin raises A$1.65m by placing 276m shares at 0.6c, with one free option per three shares (exercisable at 0.6c to June 2019). Patersons leads; the raise is not underwritten. Shares on issue rise from about 1.119bn to 1.395bn (19.8% dilution), funding drilling and more 3D seismic.

capital raising announcement

Austin completes a 491-acre acquisition next to its drilling, lifting Pathfinder to 15,773 acres at 100% (from 15,282). It also holds an option over a further 1,000 acres, with terms confidential. Purchase price is not stated; target is 20,000 acres.

asset acquisition disposition

From 15 July 2016 Guy Goudy becomes Executive Chairman, COO Tim Hart becomes CEO and Managing Director, and Aaron Goss becomes COO. Chairman Mark Hart moves to Vice-Chairman, retiring 1 October; Dominic Pellicano retires 15 July. The company says this follows a succession plan announced in 2012.

director officer appointment

Austin announces a A$1.7m placement of 200 million shares at 0.7c, a 75% premium to the 0.4c rights issue, led by Patersons. Funds will drill two more Pierre wells in June-July, at about US$500k each, ahead of back-to-back flow tests of all three.

capital raising announcement

The C18#2 Pierre well, now named Magellan #1, intersected a 790ft column of oil, with the drill string saturated in crude. Production facilities are ordered and a roughly one-month test is planned. This resolves the open C18#2 result; flow rates are not yet known.

drilling result

Austin says it has fully repaid and cancelled the Magna convertible note facility using part of the rights issue funds, and confirms the US$1.5m ANB bank facility is extinguished. It now reports being debt free, ending the Magna dilution risk.

debt financing

The rights issue closed with 49.8% take-up (215.9m shares, A$863,604). Underwriter Patersons takes the 217.5m-share shortfall, so the full A$1,733,433 is raised before costs. Funds go to Colorado drilling, working capital and offer costs.

capital raising announcement

Austin completed the sale of its 50% interest in five Mississippi wells for A$1.21m (about US$925k), below the A$1.28m agreed in February, and repaid the remaining US$350k ANB loan. Drilling in Colorado is on track to resume in April.

asset acquisition disposition

Austin announces a renounceable 1-for-1 rights issue at 0.4c to raise A$1,733,433, plus a A$150,347 placement at 4c, with free options at 0.6c expiring June 2019. Patersons to underwrite; part proceeds repay the Magna note, with no more shares issued under it. Existing holders are heavily diluted if they don't take part.

capital raising announcement

Austin agrees to sell its 50% interest in five Mississippi wells for A$1.28m (US$925,000) cash, closing within 45 days. The proceeds will clear the remaining US$350k debt. The company says the Pierre well is funded from existing cash. These are the Mississippi wells that struck oil in November.

asset acquisition disposition

Austin closed the Birch sale for A$1.5m (US$1.05m) cash, keeping two Texas wells making about 10 BOPD. The reserves loan is down to US$350,000 from US$1.5m. The Mississippi sale is said to be advancing, completing the Birch thread.

asset acquisition disposition

Austin agrees to sell its Birch Eagle Ford interest in Texas for A$1.5m (US$1.05m) cash, with proceeds to pay down its reserves-based loan, and starts selling its Mississippi property and five oil wells. This resolves the long-running Birch sale thread, ending the earlier rejected offers.

asset acquisition disposition

Austin signs a term sheet for an A$1.9m (US$1.35m) unsecured, interest-free convertible note facility from Magna, convertible at a 20% discount to the 5-day VWAP, with US$275k available at once. It replaces the shortfall placement, which the company says failed on weak market demand; conversion would dilute shareholders.

debt financing

Austin spudded the C18#2 Pierre well at Pathfinder (100% WI), drilling the first 100ft conductor section. Work has been halted for elk-breeding wildlife rules and resumes in April. Target depth is about 4,000ft, so no result for months.

drilling spud

The Board Of Education #1 well in Mississippi is producing at an initial 53 barrels of oil per day, a fifth oil strike from five wells. Austin holds 50% working interest (37% net revenue). Payback is expected in about 12 months. This resolves the pending flow rate.

production update

Austin rents a drill rig and related equipment from Math Energy Drilling for a flat monthly fee, initial term 12 months, giving it its own rig for Pathfinder. Chairman Dr Mark Hart has an interest in Math Energy; the company says terms are arm's length. Pierre Energy JV covers only C18#3 and C18#4.

material agreement

The rights issue closed with applications for 42.4m shares, raising only $635,573 (a 19.6% take-up) against up to $3.326m sought. Directors may place the remaining 173.5m shortfall shares (up to $2.6m) within three months. This resolves the offer but leaves most funding unsecured.

capital raising announcement

Austin launches a non-renounceable rights issue of two new shares for every three held at 1.5c, raising up to $3.326m, with one free option (3c, expiring 18 Sept 2017) per two shares. The price is a 25% discount to 2c. $1.5m is earmarked for Pathfinder drilling.

capital raising announcement

The Board Of Education well in Mississippi logged two zones totalling 28 feet of oil-saturated pay, and an injection well was also drilled. Completion starts next; flow rates are not yet known. This extends Austin's record of oil in every Mississippi well drilled.

drilling result

Austin rejected the offers received for its Texas Birch property as too low and will keep it on the market. The board says selling at very low oil prices is not in shareholders' interest. This resolves the June tender with no sale.

asset acquisition disposition

Pathfinder well C18#4, a deviated Pierre well drilled to 4,210 ft, intersected wet natural gas and a resistivity spike, but has not yet flowed oil. Austin holds 50% and did not pay drilling costs. Gas tests follow; this updates the pending C18#4 status.

drilling result

Austin acquired 3,721 acres adjacent to Pathfinder, taking its 100%-owned Colorado DJ Basin acreage to 15,281 acres. The 3D seismic over section 18 is complete and identified several high-grade Pierre and Niobrara targets. Drilling has recommenced in section 18.

asset acquisition disposition

Austin hired Meagher Energy Advisors to run a tender for a possible sale of its 30% interest in the 5,040-acre Birch Eagle Ford project, with bids due 8 July. No sale decision has been made. The stated aim is to focus funding on Colorado, reversing earlier hopes of resuming Texas drilling.

asset acquisition disposition

Guy Goudy becomes Managing Director and CEO from 1 July 2015, and Dr Mark Hart moves to Non-Executive Chairman. Austin says this follows a succession plan announced in March 2012. It reverses Hart's CEO and MD resumption of just two months earlier.

director officer appointment

Austin secured a $1.5m reserves-based loan from ANB Bank, interest-only monthly and secured against company assets. Funds are for low-cost conventional wells in Colorado, Kentucky and Mississippi. It is Austin's first loan of this type, after the larger US$40m debt effort was cancelled.

debt financing

Austin forms a JV with Pierre Energy Partners on Pathfinder: Pierre carries drilling of C18#3 and C18#4 in April-May, earning 50% of their oil. Austin pays completion costs. A 10-well deal for 50% of the Pierre formation is under negotiation, not yet agreed.

farm in farm out agreement

Chairman Richard Cottee retires effective 21 April 2015. Philip McCarthy and Stuart Middleton join as Sydney-based non-executive directors from 15 April. Dr Mark Hart resumes the roles of Chairman and Managing Director.

director officer appointment

Lanstead Capital, a UK investor, takes a 19.8% stake: A$4.513m for 59m shares at 7.65c, plus 5.9m fee shares, with a two-year hold. An equity swap lets Austin receive more or less than the amount depending on share price against a 10.2c benchmark. A proposed debt program was cancelled.

capital raising announcement

Curington A #1H, the fifth Birch Eagle Ford well, recorded an initial rate of 996 BOE per day (91% liquids), TD 16,620 ft with a 7,095 ft lateral. Red Bud is now producing and sixth well Seaducer is drilling at 16,700 ft. Resolves the Curington completion thread.

well test result

Austin postpones the large debt facility, pending clarity on oil prices and drilling programs. It has instead secured an incremental revolving facility with CHASE Bank at a 3.5% margin to fund scheduled Eagle Ford drilling. This ends the GEMCORP/US$40m effort for now; facility size not stated.

debt financing

Austin said it had turned cash flow positive on a monthly basis, helped by the Red Bud well in Texas, record Kentucky output, higher Colorado oil production and Mississippi output, plus cost control after the oil price drop. Excess cash will fund more drilling.

production update

Austin closed an unsecured A$2m bridging facility at 12% a year, drawable at its election, to meet Eagle Ford drilling calls and two shallow Pierre wells at Pathfinder while the US$40m facility is finalised. Three more Eagle Ford wells expected to spud in coming weeks.

debt financing

Austin proposes a 10-for-1 share consolidation, subject to shareholder approval at the 7 November 2014 AGM. Management says it aims to attract longer-term institutional investors. Share count and option terms would adjust under ASX rules; this follows the 1.0c placements.

security holder rights change

Austin agreed commercial terms with GEMCORP CAPITAL on a $40m debt facility, subject to due diligence and credit committee approval. It would fund Eagle Ford drilling with Halcón and Pathfinder. This replaces Mizuho as the named lender in the long-running US$40m debt talks; not yet closed.

debt financing

Red Bud 1H, the fourth Birch Eagle Ford well, has flowed over 20,000 BOE (80% oil) under natural pressure during flow-back. Austin calls it the fourth consecutive success. This is an early flow-back figure, not a 30-day rate; it resolves the pending Red Bud result.

well test result

Nemo 1H, the third Halcón-carried Birch well, made 18,390 BOE in its first 30 days, averaging 613 BOEPD (91% oil). That completes the three carried wells; Red Bud 1H and Curington A #1H are still in completion.

well test result

Kaiser 2H, the second Halcón-carried Birch well, made 20,550 BOE in its first 30 days, averaging 685 BOEPD (91% oil). This is below Stifflemire's 25,890 BOE, though Halcón says the acreage is de-risked and results repeatable.

well test result

Gustavson moves all Birch Eagle Ford resources into reserves: Austin net 12,687,266 BOE, total property 61,031,300 BOE. Austin's net NPV is US$401.56m (3P) and NPV10 US$91.61m, at $80 oil. Proved only (1P) is NPV0 US$64.71m, NPV10 US$22.32m.

resource reserve update

Austin is preparing two shallow Pierre wells at Pathfinder, C-01#1 and C-25#1, to about 4,000 ft, due to complete in Q4 2014. They would meet its lease drilling obligations. It says it is fully funded for current drilling and the debt facility is progressing well.

drilling scheduled

The Pathfinder gas processing plant began producing on 9 August, so heavy gas sales start as the first revenue from the project, with Austin getting a share of proceeds under the confidential GPA deal. Pipeline talks continue; flow-back is underway on three Texas wells.

production update

Curington 'A' #1H, the fifth Birch Eagle Ford well, has spud, planned to about 18,700 ft. Comstock Resources operates it via the Halcón farm-out program, and Austin says it is fully funded for its share. Completion is underway on three other wells.

drilling spud

A placement of the SPP shortfall, 171,790,241 shares at 1.0c, raises $1,717,902 through lead manager DJ Carmichael. With the SPP's $4,350,459, total equity raised is $6,068,361 before costs, alongside the US$40m debt still under negotiation.

capital raising announcement

Austin's first Pierre well, C-18#1 at Pathfinder, hit oil at about 4,500 ft that flowed naturally to the surface. Management calls it a likely large, naturally fractured, over-pressured reservoir. No flow rate or test data yet.

drilling result

Red Bud #1H, the fourth Birch Eagle Ford well, is drilling. It is Austin's first paid participation well, with a 20.2119% working interest, since Halcón's three carried wells are done. Austin targets closing the US$40m debt in the third quarter.

drilling spud

Austin closed its share purchase plan having raised $4,350,459 through 435,045,900 shares, with support from over 70% of shareholders. The funds are to support Birch Eagle Ford development, and the fourth Halcón well was expected to start in coming weeks.

capital raising announcement

Gustavson upgrades Birch: P50 oil rises 87% to 22.41 MMbbl and gas 34% to 67.02 BCF. Reserves are now classed as proven, with 27 wells booked (2 producing, 25 undeveloped). Austin says this lets it progress the US$40m debt facility.

resource reserve update

Stifflemire 1H averaged 863 BOEPD (86% oil) over its first 30 days, 25,890 BOE total, below the 1,066 BOEPD initial rate. Austin says it supports pursuing debt funding. Two more Halcón wells are being drilled.

flow test result

Austin launched a share purchase plan at 1.0c per share, up to $15,000 per holder, closing 2 June, to fund its share (US$2.4-2.7m) of the fourth Eagle Ford well. It is a bridge until the debt package. The price is below February's 1.1c placement; total size not stated.

capital raising announcement

Austin engaged Mizuho Securities USA to raise US$40m of debt for Colorado and Texas development, and has begun due diligence. It expects to close in 90-120 days. This is only an engagement to arrange funding, not a committed facility.

debt financing

Austin spudded C-18#1, its first Pierre shale well at Pathfinder, a shallow (3,000-4,000 ft) well it says can cost under US$1m. It also bought out the 15% partner for a 1.55% royalty, no cash, giving 100% working interest and 75% net revenue.

drilling spud

Halcón has spudded the second and third Birch wells (Kaiser 2H and Nemo 1H) together, after Stifflemire's 1,066 BOEPD result. Austin remains carried. It plans to pursue debt and has re-engaged Gustavson to update reserves, expected to be proven.

drilling spud

Stifflemire #1H, the first Halcón-carried Eagle Ford well on the Birch project (Austin 30%), flowed at 1,066 BOEPD, 87% oil. Austin says it should lift proved reserves and help it obtain debt funding. The first big result from the farm-out.

flow test result

Austin signed the Gas Processing Agreement with Gas Processing of America, turning the February letter of intent into a final deal. GPA funds and operates the Pathfinder plant, heavy-gas revenue is shared, and construction is expected to take 90-120 days (the LOI said ~180).

material agreement

Austin signed a letter of intent with Gas Processing of America to fund, own and operate a Pathfinder plant to process and sell heavy gases, with proceeds shared. Construction is about 180 days. It looks to replace the company-funded pipeline plan; not yet a definitive agreement.

material agreement

Mississippi #4 reached 6,400 ft with oil shows in the Campbell and Parker sands, plus the Wilson sand; cores show a 6.5 ft Campbell oil column. Casing is set for production. Halcón's Stifflemire #1H is now drilling its horizontal section. No flow rates yet.

drilling result

Austin raised $2.86m by placing 260m shares at 1.1c, a 15% discount, with DJ Carmichael as lead manager. Funds start the Pierre shale drilling at Pathfinder. The price is below the 1.2c August 2013 raise, so existing holders are diluted at a lower price.

capital raising announcement

Drilling has started on the Stifflemire #1H, the first of three Eagle Ford horizontal wells Halcón is drilling with Austin free-carried on the Birch project. This is the long-awaited start of the farm-out program; a fourth carried well follows with PetroMax in 2014.

drilling spud

Austin cancelled the April letter of intent to farm out 30% of Pathfinder and is instead talking to several US companies about long-term development funding. It plans its first Pierre shale well there in early 2014. Mercator gas contract work continues.

farm in farm out agreement

The PEL 105 sale to Tellus completed, with Austin taking the $1.75m scrip option: 19,776,020 Tellus shares, about 14.9% of Tellus, escrowed 12 months. This resolves the May sale agreement, leaving Austin with no cash from it but equity exposure.

asset acquisition disposition

Gustavson's updated report puts Birch (Texas) P50 at 11.98 million barrels of oil and 50.06 BCF gas, up 26% and 19% on the 2012 report. Kentucky P50 is 517.3 thousand barrels of oil and 1,104 MMCF gas.

resource reserve update

Austin closed the 645-acre Birch farm-out with PetroMax Operating, which fully funds the first horizontal well (US$8-9m); later wells split 70/30 in PetroMax's favour. Drilling is expected in first half 2014. With Halcón, four carried wells total US$32-36m.

farm in farm out agreement

Austin raised $1.7m from an institutional placement of 141.6m shares at 1.2c, a 14% discount, lower than the 1.6c April-May raise. Funds go to the Pathfinder gas pipeline, costing about $1.2m and expected to earn about $150,000 a month (company estimate).

capital raising announcement

Austin signed the Birch farm-out with Halcón Resources: Halcón funds three Eagle Ford horizontals (US$24-27m) and earns 70%, Austin keeps 30%. Austin gets $1.9m upfront, and 70% of Krueger and Schwartz Galbreath wells is sold. This closes the earlier unnamed-partner deal.

farm in farm out agreement

Austin agreed terms with an unnamed major US company to fund the next three Birch Eagle Ford wells (about US$24m) and earn 70%. Austin gets a $1.95m upfront payment and keeps 100% of a 645-acre parcel. Partner to be named by 30 June.

farm in farm out agreement

The SPP and placement closed, raising about $1.5m at 1.6c in total, well below the up-to-$8m SPP target. The company lists cost cuts and deals: Pathfinder commitment well replaced by a $250,000 payment, Birch commitment wells replaced by $1.25m, and PEL 105 sold.

capital raising announcement

Austin signed a Heads of Agreement with Mercator Energy, which would fund and build Pathfinder gas gathering and processing, in return for a share of the NYMEX gas price. Stage one is expected in 6-9 months. Austin also bought out its third (30 June) commitment well.

material agreement

Austin agreed to sell its 50% of PEL 105 (Cooper Basin) to PNC AUST for $1.25m, due 30 September 2013, or alternatively $1.75m in shares of a PNC-related listed company. Proceeds are earmarked for US gas gathering; this ends the Beach JV exposure and Pirie-1 spending.

asset acquisition disposition

Austin signed a non-binding letter of intent to farm out 30% of Pathfinder to a new partner. Austin would be carried on the next two horizontal wells (capped at US$12m), keep a 55% interest and stay operator. A 90-day exclusivity period for final due diligence has begun.

farm in farm out agreement

Austin launches a Share Purchase Plan to raise up to $8m at 1.6c per share, after a $1.471m placement at the same price, to cover about $2.7m of drilling commitments. It also reports farm-out talks for Pathfinder and a possible Birch horizontal well in July.

capital raising announcement

Austin says it hit its Project 500-Squared targets: 547 boe/d gross company-wide, three months ahead of schedule, and over $1m of overheads removed. Pathfinder contributes 403 boe/d of this, and the well is still stabilising. Figures are gross, not Austin's net share.

production update

Pathfinder #1 flowed 341.7 boe over a 12-hour natural test (210.4 bbl oil, 131.3 bbl gas equivalent), with gas above expectations. This follows January's unquantified flows. Austin plans to compress and sell the gas, and the chairman says the result could open debt funding.

flow test result

Pathfinder C11-12 No.1 HZ averaged 350-400 boe/d over a three-day high-pressure test. Austin calls this proof the field is economic and has shut the well in to build commercial production facilities, possibly including a gas line within five miles.

flow test result

Pathfinder #1 is flowing oil and wet gas naturally to surface at about 66 MCF per hour after the well was opened on 20 January; gas exceeded the flaring equipment, so new equipment was installed. Oil volume cannot yet be quantified; at least 30 days of monitoring are needed.

flow test result

Pathfinder C 11-12 #1 (85% interest) drilled a 4,100 ft horizontal leg to 9,870 ft with no problems and hydrocarbon shows throughout. Frac expected by end October, oil results by November AGM. Birch #3 still flowing back drilling fluids. Beach plans to drill Pirie-1 on PEL 105 in Q1 2013; Beach funds the first $1.75m.

drilling result

Gustavson's independent report puts P50 ultimate recovery at 31.28 MMbbl oil and 66.53 Bcf gas across Pathfinder and Birch (P90 22.3 MMbbl, P10 45.87 MMbbl). It is the first independent estimate for the two projects. Company says it is funded for the June 2013 drilling commitments.

resource reserve update

Pathfinder C 11-12 #1 reached 5,920 ft with logs the company calls excellent, showing about 200 ft of potential Niobrara pay. It will drill a second Niobrara well from the same pad before completing the horizontal. Specific log numbers are withheld; flow rates are not yet known.

drilling result

Bourke #4 in Mississippi (50% interest) flowed 248 bbl/d on a 24-hour test, beating pre-drill expectations and the earlier wells' 135 and 82 bbl/d. Talks on a fourth well are advanced. This moves Project 500 Squared forward.

well test result

Pathfinder C 11-12 #1 spudded 30 June, the first Niobrara horizontal well (85% interest), planned to about 9,100 ft with a 4,000 ft horizontal leg. Austin is operator for the first time. Cash is over A$22m; the second Eagle Ford vertical and Bourke #4 are also drilling.

drilling spud

Chairman Cottee's first address announces 'Project 500-squared': cut A$500,000 of non-technical costs by 30 June 2012 and reach about 500 bopd. Management is reshuffled: Hart becomes President and CEO, Goudy Deputy President, Lonny Haugen acting CFO. He says he wants no further option issues.

other

Richard Cottee joined as non-executive chairman on 22 March 2012. Subject to shareholder approval, he is to receive 5m shares and 15m options (5.5c, July 2013); Hart and Goudy get 10m options each, plus a performance rights plan tied to 2012 targets.

director officer appointment

Krueger #1, the first Eagle Ford well (93.5% interest), flowed 95 barrels of oil equivalent per day on a 24-hour test, about 75% oil, above the 60 bopd high case. Taylor Sand testing follows in April. Two more verticals and a horizontal are planned.

flow test result

Austin plans to raise up to about A$20m via a placement of up to ~690m shares at 2.9 cents with 1-for-2 free options (5.5c, July 2013), plus a A$5m share purchase plan. Funds a multi-well program: Eagle Ford, Niobrara horizontals and a Mississippi well. Described as oversubscribed.

capital raising announcement

Placement of 40 million shares at 2.7 cents with free attaching options (exercisable 5.5c, expiring July 2013) to raise A$1.08m for US exploration. Company says it is on track to secure a reserves-based debt and equity facility.

capital raising announcement

Richard Cottee, former Queensland Gas Corporation managing director and most recently Nexus Energy CEO, to become non-executive chairman from 24 February 2012. Dr Mark Hart steps down as chairman but stays as president and executive director; Guy Goudy remains CEO.

director officer appointment

Krueger #1, the first Eagle Ford well (93.5% interest), reached 9,325 feet, 125 feet deeper than planned, with oil and gas shows in the Eagle Ford (8,829-9,102 ft) and Georgetown. Frac and flow testing now targeted for end of January 2012. Shows are not flow results.

drilling result

Krueger #1, the first Eagle Ford well on the ~5,000-acre project (93.5% interest), spudded 8 November, ending the delays since the original 19 September date. Planned depth is 9,200 feet, with drilling expected to take 12-15 days. Weekly updates promised.

drilling spud

Cooper Basin PEL 105 has dried out after flooding and rig selection is starting. Pirie-1 is now expected in Q1 2012, with Adelaide funding the first A$1.75m. This ends the flood suspension; the company cites a chance of over one million barrels.

drilling scheduled

Independent expert report on the Niobrara (Pathfinder) acreage, said to confirm prospectivity. Text is mostly unreadable; the later quarterly cites 200,000–500,000 barrels per horizontal well and spacing for about 70 wells.

resource reserve update

Settlement completed on the Niobrara (about 11,000 acres, 65% NRI) and Eagle Ford (about 5,000 acres, 70% NRI) shale acreage, described as fully funded. The first Eagle Ford well is set to spud 19 September 2011. Guy Goudy is named as the new CEO.

asset acquisition disposition

Announces a new director and a change of Chairman and CEO. Text is mostly unreadable; a later release shows Guy Goudy as CEO and Mark Hart as Chairman. Details of the new director cannot be confirmed.

director officer appointment

Sells its option to farm into up to 4% of Seychelles licences to WHL Energy for A$420,000, versus A$340,000 paid in 2010. Closes the Seychelles thread and refocuses funds on the new Eagle Ford and Niobrara shale projects.

asset acquisition disposition

Independent expert report on the Birch Eagle Ford acreage; text is mostly garbled. Later releases cite 179,000–810,000 barrels per well and potential for 32 development wells. This is the reserves report due in early July.

resource reserve update

Agrees terms with Newmont, Cimarex and Prize Energy to buy 10,486 acres of Niobrara mineral rights (Pathfinder, Fremont County, Colorado) for about A$2m, with at least 85% WI and 65% NRI. Title checks and final contract still pending; Birch reserves report due early July.

asset acquisition disposition

May 2011 total well output topped 5,000 barrels, revenue over $200,000, the best month since the 2006 listing. Commencement well is stable at 130 bopd. Niobrara acquisition is said to be imminent, pending shareholder approval at the 17 June meeting.

production update

Placement prospectus lodged 23 May for the capital raising, offers closing 13 June with a general meeting on 17 June. The visible text carries no raise size or price; it flags Birch and Niobrara as early-stage and high risk.

capital raising announcement

Says US operations were cash flow positive for a full quarter, a first since the 2006 listing. Armstrong #1 peaked at 195 bbl on 11 May, sold at $115 per barrel. An independent reserves report is commissioned on the first 900 Birch acres; Birch drilling is expected late July.

production update

Armstrong #1 at Commencement began producing 6 May and was flowing 135.4 barrels of oil per day by 10 May, rising daily. Company says its investment would be recouped in under 6 months. Confirms the April discovery as commercial; talks begin on a third Mississippi project.

flow test result

Announces a Niobrara Shale acquisition and a capital raising. Text is largely unreadable, so the size, price and acreage terms cannot be confirmed here; later releases describe Niobrara acreage with at least 85% WI and 65% NRI.

capital raising announcement

Signs an option to acquire 5,000 acres of Eagle Ford Shale (Birch Prospect, Burleson County, Texas) at US$400 per acre, for a 93.5% working interest and 70.125% NRI. Option runs to 31 July 2011; due diligence is expected within 30 days. New US shale push.

asset acquisition disposition

Bombing Range reached target depth with 11 feet of potential sand pay seen on logs; a 60-day review follows and the next step may be a horizontal well, not before US summer 2011. Cost to date US$203,625. Commencement spud set for 17 March.

drilling result

The placement closed, with 39.9 million shares placed at 3 cents to raise $1,197,000 before costs. Confirms the 17 January announcement.

capital raising announcement

Announces a placement of up to 40 million shares at 3 cents to raise $1.2m before costs, for US exploration. No shareholder approval needed, using the 15% capacity. Priced well below the earlier 5c rights issue.

capital raising announcement

Settles the Newtak dispute via a 50/50 Kentucky Exploration LLC joint venture holding Park City and Sebree. Newtak converts its US$2.25m loan to equity; Aus-Tex adds US$1.75m. Replaces the old participation agreement; needs shareholder and regulatory approval.

joint venture update

Acquires a 50% working interest (37.5% NRI) in the Commencement Prospect, Adams County, Mississippi, with the Armstrong operator; about US$500,000 to drill and complete, reserves 55,000-78,000 barrels. Bombing Range spud slips after a rig problem, now to follow Commencement.

asset acquisition disposition

Aus-Tex moves its US headquarters from Texas to Denver and hires new engineers; employment of Kenny Hill and Stan Lindsey ends. Former MD David Schuette's wrongful dismissal claim settled for no consideration. Bombing Range operations due within 10 days.

director officer appointment

Acquires a 34% working interest (25.5% net revenue) in the Bombing Range Prospect, Vernon Parish, Louisiana, with the same operator as Armstrong. Aus-Tex's well cost is about US$320,000; spud expected second week of December 2010; recoverable estimate 505,000 barrels.

asset acquisition disposition

WHL Energy announced it will acquire SEYCO Energy, which holds rights to 35 Seychelles offshore blocks. Austin has a right to farm in for up to 4% on a non-promoted 1-for-1 basis. This is a new frontier exploration thread, with no cost or commitment stated in this text.

farm in farm out agreement

Dr W. Mark Hart, a director since 3 June 2010, is appointed CEO of Austin Exploration and Chairman of Aus-Tex. He is to receive 1,000,000 shares and 1,000,000 options (10c, expiring 30 Nov 2011), subject to shareholder approval at the 19 November AGM.

director officer appointment

Yolanda Villarreal #1 is on production at 243 barrels of oil a day under natural pressure, since 1 August. The company says it is now cash flow positive and expects to recover the well's cost within six months. Rates are expected to settle near 300 bopd on pump.

production update

Drilling of Yolanda Villarreal #1 is finished, with both laterals reaching target (B 2,500 ft, E 2,000 ft) and 951 ft of cumulative oil and gas shows. The rig is being removed and completion work comes next; no production rate yet.

drilling result

Yolanda Villarreal #1 at North Carrizo spud on 16 June, with drilling expected to take 30 days. Plans are 2,500 ft laterals in the B Zone and E Zone. Aus-Tex holds 45% WI to casing point, 36% after, and 27.36% NRI.

drilling spud

Dr W. Mark Hart, a US energy executive formerly of Newmont and NRG Energy, is appointed a director. The announcement links his hiring to the Cooper Basin start with Adelaide Energy, though it does not give a start date.

director officer appointment

Aus-Tex acquires the North Carrizo Austin Chalk oil prospect in Dimmitt County, Texas: 45% WI to casing point, 40% after, 27.36% NRI. Reserve potential is 200,000-250,000 barrels. Well cost is about US$1.93m (100% basis), with spud scheduled early June.

asset acquisition disposition

Ellislie Plantation #1 at Armstrong tested at 82 barrels of oil a day, with all infrastructure complete and the pump enlarged. It is the first oil producer for Aus-Tex under the Armstrong deal (50% WI). Testing continues toward 1,500 barrels of fluid a day.

production update

Heavy rain in the Cooper Basin has delayed the first PEL 105 well, Pirie-1, from the planned early June spud to the December half of 2010. This pushes back the Adelaide Energy/Austin 50:50 joint venture's main Australian drilling event.

joint venture update

Core tests at Ellislie Plantation #1 found 21 of 29 sidewall cores oil-saturated. The Armstrong sand averages 27% porosity and 555 millidarcies, the Benbrook 27% and 433. This supports the logs; production casing is being set ahead of completion.

drilling result

The 31 January 2010 deadline passed without shareholder approval of the Newtak settlement (US$2m cash plus shares and options). The parties must now negotiate an alternative settlement in good faith. This leaves the Newtak dispute unresolved.

material agreement termination

Aus-Tex acquires a 50% interest (37.5% net revenue) in the Armstrong prospect near Natchez, Mississippi, as a non-operator. Three Wilcox wells of about 6,500 ft are planned, at about US$500k each; the first, Ellislie Plantation #1, is due to spud early March. A new US oil asset.

asset acquisition disposition

Independent report on Sebree's 157 acres gives 132,000 barrels ultimate recoverable and 379,000 barrels proved undeveloped (100% basis; Aus-Tex holds 50%). Management values the recoverable oil at US$7.92m at a flat US$60. This resolves the pending Sebree reserve report.

resource reserve update

Independent report on Park City's roughly 857 acres: oil 290 Mbbl proven and 623 Mbbl probable; gas 121 MMcf proven and 879 MMcf probable, plus 9.79 Bcf in place. Management values these at US$50.2m oil and US$34.9m gas at assumed prices. Atmos plant reopening now late January.

resource reserve update

Aus-Tex completes a joint development deal with KOS Energy for the Sebree oil project in Kentucky's Illinois Basin, paying US$245,000 for a 50% interest (37.5% net revenue). One well makes 10-22 bopd; four more are targeted by end-March 2010. A new asset beyond Park City.

asset acquisition disposition

Shareholders took up only 43.8m shares ($2.19m, 31.98%) of the rights issue. The underwriter, Allegra, must cover the 99.2m-share shortfall ($4.96m), so the full roughly $7.15m is expected within 5 working days. Funds Park City and PEL 105.

capital raising announcement

Adelaide Energy takes a 50% interest in PEL 105 for $250,000 cash, with the farm-in work program deemed complete. It operates Pirie #1 and carries Austin for the first $1.75m of well costs. Austin owes $400,000 if the well is dry. Conditional on SA Government approval.

farm in farm out completion

Settles the Newtak dispute over the 2008 Park City funding for US$5m: US$2m cash plus US$3m of shares at 5c and 33.7m options. Conditional on raising at least A$7m. Newtak keeps its royalty on the existing 17 wells only. Director Pellicano is a beneficiary of Newtak.

material agreement

Austin plans a fully underwritten 1-for-1 rights issue at 5 cents to raise about $7.2 million, underwritten by Allegra Capital. One free option (10c, two years) comes per two shares. Proceeds fund PEL 105, Kentucky expansion, acquisitions, working capital and paying down a loan facility.

capital raising announcement

Fourth Park City well, Harlin Tarter #1, tests above 29 bopd, lifting cumulative flow to over 82 barrels per day. All four wells in the first completion program succeeded. A phase two drilling plan is being prepared during September, and 22 barrels were sold to the refinery on 26 August.

drilling result

First Park City oil well, Spillman #1, tested at 12 barrels of oil per day, and 15 of 17 drilled wells appear to have oil zones. Strategy shifts from gas to oil. Austin now holds 100% WI and 78.125% NRI (up from 56.25%). First oil sales are expected in August.

well test result

Managing Director David Schuette leaves the company with immediate effect and no longer runs the US subsidiary. New director Guy Goudy becomes president of Aus-Tex, and Kenny Hill stays as VP. The focus is now Park City.

director officer appointment

Park City litigation with RET is settled on confidential terms. Austin's subsidiary takes operatorship of the 17 wells and 100% WI (87.5% NRI before Newtak and California Service interests) from 1 July 2009. It also places 16m shares at 4c to raise $640,000.

material agreement

Chairman Paul Teisseire, a director since May 2006 and chairman since October 2007, retires to spend time on other business and family interests. Director Dominic Pellicano, an accountant, becomes chairman immediately.

director officer appointment

Austin adds a 160-acre Giddings Field lease with three producing wells. Spudding of the ODC #4 re-completion and deepening to the Georgetown formation is expected within days, run by Bruington Operating. Austin holds 70% WI (43.75% NRI) in the Georgetown; Newtak and California Services take 30%.

drilling scheduled

A private Houston-based investor takes a AU$1 million placement of 5 million shares at A$0.20, well below the $0.31 of the recent share purchase plan and placement. The money is restricted to Moses Austin recompletions; further capital raising is said to be under way.

capital raising announcement

Acid stimulation of Polecat Creek Ezell 4-H (35% WI) lifted gas from 15 mcf/day to a post-treatment high of 190 mcf/day plus 5 barrels of oil/day. Austin expects it to stabilise at 200-350 mcf/day. Treatment cost US$12,506.55. Early results, while the well is still unloading fluid.

well test result

Austin asks a US federal court for a preliminary injunction against Park City operator RET, to force an audit and place gas revenues in a court-managed account. It alleges breach of duty and misrepresentation. It also launches a 90-day plan with other investors, including removing RET as operator. A sharp break with the operator.

regulatory community update

Austin acquires 731.88 acres of mineral rights in the Giddings Field, Texas, as the new Moses Austin project, with a 78.3% net revenue interest. A vertical re-entry and deepening of one of five existing wells is planned this calendar year. A new US oil and gas area for the company.

asset acquisition disposition