Each one in plain English, with the numbers worked through for a shareholder.
3 Feb 2016capital raising announcement● Neutral
Cleansing prospectus for up to 6,250 shares at 1.6c to raise up to $100. It exists to lift trading restrictions on shares already issued, not to raise funds. Text truncated.
What it means for a shareholder
6,250 new shares at A$0.016 to raise about A$100. That's 0.00167% dilution: every existing holder's slice gets 0.00167% smaller. If you held A$1,000 of shares (62,500 at the issue price), your slice goes from 0.0167% to 0.0167% of the company. To keep it you'd need 1 more shares - about A$0 at the issue price.
1 Feb 2016asset acquisition disposition● NeutralMajor
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.
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.
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.
ASX lifts the trading suspension immediately after receiving an announcement about a convertible note facility. This ends the suspension that began on 9 December 2015 pending the shortfall raising.
Non-executive director Phillip McCarthy resigned, citing other work commitments. The board is left with Chairman Mark Hart, MD Guy Goudy, and non-executives Dominic Pellicano and Stuart Middleton. Not a leadership change at chair or CEO level.
Austin's shares stay suspended while it finalises its capital raising; the suspension will lift when the raising is announced. This continues the shortfall placement thread, which has now run past the two days expected on 9 December.
Austin's share registry moved from Computershare to Boardroom Pty Limited, effective 14 December 2015. Administrative notice only, with no operating or financial information.
Austin's shares are suspended at the company's request pending an announcement on completing the rights issue shortfall raising. A trading halt had expired on 7 December; the company expects suspension of no more than two days.
November investor presentation restates known points: C18#2 Pierre well in December, 57 producing wells, net resources over 45m BOE. It shows cash of $750k at 1 November 2015 and 374m shares on issue, with headcount cut to 6. Text truncated.
About 90% of drilling equipment is on site at Pathfinder, with the C18#2 Pierre well expected to start soon after 26 November. Austin says the drill pad and access road cost US$5,000. No drilling result yet.
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.
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.
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.
Austin identifies Pierre Shale oil targets at Pathfinder and plans to drill C18#2 in December, with rights issue funds going to it. The well would satisfy lease commitments to retain all acreage. Permits are still expected. It follows the C18#4 gas show of 30 July.
Completion of the Board Of Education well in Mississippi is on track, with first oil expected in November; this is the fifth oil strike in five Mississippi wells. Austin holds 50% working interest. Flow rates are not yet known. Pierre drilling in Colorado is scheduled to begin in November.
Austin confirms the rights issue prospectus and entitlement forms were mailed to all shareholders on 7 October. The timetable is unchanged, with closing on 19 October and issue on 26 October. Administrative notice only.
Replacement prospectus dated 6 October replaces the 24 September original for the rights issue: up to $3,326,078 at 1.5c, two-for-three, with free 3c options expiring 18 September 2017. Terms unchanged; closing date 19 October. Text truncated, so reasons for replacement are not shown.
Corporate governance checklist lodged with the annual report for the year to 30 June 2015, pointing to pages 13 to 27 of the annual report. Administrative filing with no new operating or financial information.
Annual report for the year to 30 June 2015. The letter cites over US$1.6m annualised cost savings (70%), the US$1.5m ANB loan, Pathfinder at 15,282 acres, and net resources above 45m BOE. Financial statements are not shown in the truncated text.
Sample copy of the shareholder letter mailed 25 September about the rights issue. It repeats the existing terms (two-for-three at 1.5c, up to $3.326m, record date 1 October, closing 19 October). No new information.
Investor presentation restating known points: low-cost vertical drilling in Colorado, Kentucky and Mississippi, two Pierre wells planned, and 57 producing wells. It cites $1.8m cash at 30 June 2015 and 332m shares on issue. A Pierre discovery is called a potential game changer.
Prospectus for the rights issue of up to $3,326,078 at 1.5c, two shares for every three held, with free 3c options expiring 18 September 2017. It describes the shares as highly speculative. Closing date is 19 October. Text truncated.
Re-release of the 23 September rights issue announcement with a corrected timetable: shareholder notice moves to 25 September and prospectus despatch to 7 October. Terms are unchanged: up to $3.326m at 1.5c, two-for-three.
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.
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.
31 Aug 2015asset acquisition disposition● NeutralMajor
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.
Drilling has started on the Board Of Education well in Mississippi, where Austin holds 50% working interest and 37% net revenue interest, after four successful wells there. Funded by the ANB Bank loan. Workforce is cut from 30 to 8 staff.
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.
16 July 2015asset acquisition disposition▲ GoodMajor
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.
