16 Aug 2017drilling progress report● Neutral
Capillary Energy's radial jet drilling unit is on site at the C11-12 well, with jet drilling of the Greenhorn Formation expected before the end of August. Repeats the 7 August farm-out terms.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
10 Aug 2017drilling spud▲ GoodMajor
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.
8 Aug 2017drilling scheduled▲ Good
Final Colorado permits received for Bird #13-18 and the Math Energy rig is being mobilised, with spud this week. The target is drilling and completion for US$400,000, with completion expected in September.
7 Aug 2017farm in farm out agreement▲ GoodMajor
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.
27 June 2017drilling scheduled▲ Good
Surface use agreement is signed and the Bird #13-18 drill pad is being built in-house for under US$5,000, with drilling due to start in July. This is the first well of the 2017 Pathfinder development program flagged in the June presentation.
8 May 2017resource reserve update▲ GoodMajor
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.
13 Feb 2017drilling result▲ Good
Weatherford analysis of 100 cuttings samples says the Pierre at Pathfinder is at the onset of the oil window and more mature than the producing field to the east. Company says this supports the gas at Marco Polo and Columbus being dissolved in oil. Resolves the pending analysis; no oil rates.
9 Feb 2017resource reserve update▲ GoodMajor
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.
2 Dec 2016resource reserve update▲ Good
Gustavson Associates has been engaged to prepare a reserves and resources report on the Pierre formation at Pathfinder, with Weatherford doing cuttings analysis. This starts the independent report flagged earlier. No volumes yet; the company only expects significant oil and gas remains.
1 Dec 2016drilling progress report● Neutral
Marco Polo #1 and Columbus #1 are still flaring high-volume gas to bleed off pressure, so oil flow tests have not yet started. The company reads the pressure as a sign of potential oil. No oil rates yet, repeating the 17 November update.
17 Nov 2016drilling progress report● Neutral
Strong gas flows at Marco Polo #1 and Columbus #1 are being flared to bleed off pressure before oil flow tests. The company reads this as a possible sign of untouched oil and a Pierre section about 1,000ft thicker than the Florence field. No oil rates yet.
27 Oct 2016drilling result▲ Good
Drilling on Columbus #1 is complete with hydrocarbons in cuttings, finishing the three-well program for about US$1.5m total. Casing is run; Magellan #1 flow testing starts next week. No flow rates yet, so commercial success is unproven.
13 Oct 2016drilling progress report● Neutral
Columbus #1 deviated drilling is going to plan, with hydrocarbons in cuttings. Drilling is expected to finish this month, then flow testing starts with Magellan #1. No flow rates yet.
4 Oct 2016drilling progress report● Neutral
Deviated drilling has started on Columbus #1, the third and last Pierre well at Pathfinder (100%, 15,773 acres). Magellan #1 and Marco Polo #1 are cased. Flow testing of all three follows; no results yet.
14 Sept 2016drilling progress report● Neutral
The rig has been moved to Columbus #1, with deviated drilling due to start shortly. Magellan #1 and Marco Polo #1 drilling is finished. Flow testing of all three wells begins after Columbus #1 is done. No new results.
1 Sept 2016drilling result▲ Good
Deviated drilling on Marco Polo #1 is complete, on budget at about US$500k, with hydrocarbons seen in cuttings and heavy natural fracturing. Casing is run and the rig moves to Columbus #1. Flow testing still expected from end September; no flow rates yet.
11 Aug 2016drilling progress report● Neutral
Deviated drilling has begun on Marco Polo #1, the second well of the three-well Pierre program, after the rig moved from Magellan #1, which is cased and awaiting flow testing. No new results are reported.
2 Aug 2016drilling progress report▲ Good
Magellan #1 has been drilled and perforated production casing run, ready for flow testing. Multiple oil shows were seen through the Pierre. The rig is moving to Marco Polo #1 for deviated drilling. No flow rates are reported.
28 July 2016drilling progress report● Neutral
Deviated drilling has begun on Magellan #1, with multiple oil shows reported, which the company says shows an oil-filled fracture was hit. Operations are on budget. The Math Energy rig is rented at a flat monthly fee for an initial 12 months. No flow results yet.
14 July 2016drilling progress report● Neutral
Columbus #1's vertical section is drilled and Marco Polo #1, the third well, has started. Deviated drilling of all three wells follows, described as on track and on budget. No new oil or flow results are reported.
27 June 2016drilling spud● Neutral
Drilling has started on Columbus #1, the second well of a three-well Pierre program at the 100%-owned Pathfinder project, following Magellan #1. The three wells are to be flow tested in sequence in the September quarter.
26 May 2016drilling result▲ GoodMajor
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.
19 May 2016drilling progress report● Neutral
C18#2 conductor and surface sections are drilled, cased and cemented. The intermediate section is being drilled to about 3,200ft, with a target depth near 4,100ft. No oil result yet.
29 Apr 2016drilling progress report● Neutral
Drilling has resumed at C18#2 Pierre well at Pathfinder (100% WI) after the elk-breeding halt, using the Math Energy rig. Cost is expected near US$500k, with results targeted for late May, weather permitting. This continues the February spud.
1 Feb 2016drilling spud● NeutralMajor
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.
24 Nov 2015drilling progress report● Neutral
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.
19 Oct 2015drilling scheduled▲ Good
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.
14 Oct 2015drilling progress report▲ Good
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.
2 Sept 2015drilling result▲ GoodMajor
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.
28 Aug 2015drilling spud● Neutral
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.