Past year: ▼ 69%(0.40c – 1.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
5 July 2021production update▲ Good
June quarter oil sales were 24,230 bbl, about 20% above the 20,500 bbl forecast, with unsold stock of ~22,747 bbl. Production was hit by refinery outages, maintenance and Colorado flaring limits. Fremont now leases its own tankers in Kentucky, saving US$2 per bbl.
1 July 2021production update▲ Good
A ~US$25,000 pipeline repair is reconnecting 31 gas wells offline since 2016, adding about 400 Mcf/d and ~US$40,000 monthly revenue, with payback under a month. With the new gas contract, monthly Magnum Hunter revenue is up US$140,000.
29 June 2021contract award▲ GoodMajor
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.
17 June 2021other▼ BadMajor
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.
9 June 2021production update▲ Good
June quarter oil sales are forecast to exceed 20,500 bbl, against 12,894 bbl in March, on a full quarter of Magnum Hunter. Sales to date are ~15,600 bbl. Inventory is expected at ~18,000 bbl as the company holds back oil to sell at higher prices.
27 May 2021production update▲ Good
Oil sales in the first seven weeks of the June quarter topped 13,000 bbl, already above the whole March quarter's 12,894 bbl. Management expects record revenue this quarter and promises a forward workover plan shortly.
13 May 2021production update▲ Good
Unsold oil stock of 28,070 bbl is being sold at about 2,000 bbl a week, with transport cost cut from US$6.50 to US$2 per bbl. Independent reserves and asset retirement reports are commissioned. Kentucky agreement requires plugging only 10 wells a year. Funding relies partly on option conversions.
27 Apr 2021production update▲ GoodMajor
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.
15 Apr 2021material agreement▲ Good
Trey sellers agree to split the US$900,000 final payment: US$450,000 was paid 2 April and the other US$450,000 is now due 2 October 2021. This eases near-term cash needs. Total production is said to be above the 2,040 BOE reported on 1 April.
15 Apr 2021half year report● Neutral
Half-year report to 31 December 2020 now includes the auditor's review section, following the unaudited version of 17 March. Revenue was A$309,304 on 12,417 barrels produced. MHP net assets acquired were A$1.26m. The truncated text shows no new headline figures.
6 Apr 2021director officer appointment▲ GoodMajor
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.
1 Apr 2021production update▲ Good
Magnum Hunter production rose about 20% to 2,044 BOEPD at 31 March from ~1,700 on 9 March, with gas at 9.0 MMcf/day. Gains came from initial well work and pipeline repairs. Delivers early on the 20% target set at acquisition.
31 Mar 2021asset acquisition disposition▲ GoodMajor
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.
23 Mar 2021director officer appointment▲ Good
Appoints two finance executives: Bradley Mervis as General Manager – Finance (Sydney, from early April) and Stephen Lampner as VP Finance (Lexington, Kentucky). Supports the larger post-Magnum Hunter portfolio. Says the acquisition is on track to close by month end.
17 Mar 2021half year report● Neutral
Unaudited half-year to 31 December 2020: loss A$2.196m, revenue A$309k (down 28.7%), net assets A$11.8m. Relies on ASIC relief to delay the audited report. Notes a 15% stake in Magnum Hunter bought for US$75k in November 2020, with the remaining 85% costing US$425k.
11 Mar 2021investor presentation● Neutral
Presentation accompanying the 11 March webinar on the Magnum Hunter acquisition and growth strategy. It repeats the known points: ~1,300 wells, ~8 MMcf/day, a 20% production lift within 90 days, and a US$425,000 price deducted from accounts payable.
9 Mar 2021asset acquisition disposition▲ GoodMajor
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.
9 Mar 2021regulatory community update● Neutral
Lists the oil and gas leases acquired with Magnum Hunter Production, filed separately because of its size under ASX listing rules. A list only, with no new information beyond the 9 March acquisition.
12 Feb 2021drilling result▲ Good
The first nine of 20 planned Trey workovers (chemical treatments) added about 15 barrels a day, lifting Trey from ~75 to over 90 BOPD, roughly 20%. Five more workovers are under way and three refracture jobs are added, the first starting by end February.
2 Feb 2021admin correction● Neutral
Replaces the 29 January quarterly report and Appendix 5B, because the earlier 5B was a draft released in error. The quarterly activities text shown appears unchanged; no new information in the text provided.
13 Jan 2021drilling progress report▲ Good
A 21-well workover programme has started on the Trey leases bought in October 2020, which produce about 71 barrels a day from ~115 wells. First results are due end of January. Management says WTI above US$50 makes the leases more valuable.
23 Dec 2020capital raising announcement● Neutral
Cleansing prospectus offering 10,000 shares at A$0.003 (A$30) purely to lift resale restrictions on shares from the recent placement. No new money or business information.
What it means for a shareholder
10,000 new shares at A$0.003 to raise about A$30. That's 0.000214% dilution: every existing holder's slice gets 0.000214% smaller. If you held A$1,000 of shares (333,333 at the issue price), your slice goes from 0.00713% to 0.00713% of the company. To keep it you'd need 1 more shares - about A$0 at the issue price.
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18 Dec 2020capital raising announcement● NeutralMajor
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.
What it means for a shareholder
600m new shares at A$0.003 to raise about A$1.8m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (333,333 at the issue price), your slice goes from 0.00818% to 0.00713% of the company. To keep it you'd need 49,078 more shares - about A$147 at the issue price.
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18 Dec 2020listing compliance notice▲ GoodMajor
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.
8 Dec 2020financial restatement● NeutralMajor
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.
30 Nov 2020capital raising announcement● Neutral
Completes the second tranche of the April A$3m placement with the last 66,666,667 shares at A$0.003, raising A$200k, plus the attaching options. Closes out the April raising.
What it means for a shareholder
66.7m new shares at A$0.003 to raise about A$200,000. That's 1.6% dilution: every existing holder's slice gets 1.6% smaller. If you held A$1,000 of shares (333,333 at the issue price), your slice goes from 0.00832% to 0.00818% of the company. To keep it you'd need 5,544 more shares - about A$17 at the issue price.
Create a free account to see this worked out for your own holding.
2 Nov 2020listing compliance notice▼ Bad
ASX temporarily paused trading in Fremont shares on 2 November 2020 pending a further announcement. The notice gave no reason.
2 Nov 2020admin correction● Neutral
Appendix 4G corporate governance checklist for FY2020, a routine compliance filing with no new information.
2 Nov 2020listing compliance notice▼ BadMajor
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.
2 Nov 2020annual report▼ BadMajor
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.
