25 Oct 2021investor presentation● Neutral
Notice of an investor webinar on 28 October to discuss September quarter results. This version has a typo in the date, corrected in the next notice. No new information.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
22 Oct 2021quarterly activities report▲ GoodMajor
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.
15 Oct 2021listing compliance notice▲ Good
ASX says AXP's trading suspension will lift immediately after AXP releases its announcement on the Supreme Court orders. Administrative step.
15 Oct 2021listing compliance notice▲ GoodMajor
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.
14 Oct 2021capital raising announcement● Neutral
A cleansing prospectus offers one nominal share (up to 10,000 at A$0.007), 300 million options to December placement participants and 95 million broker options. It raises almost nothing and fixes past share-issue paperwork, a step in lifting the trading suspension.
12 Oct 2021director officer appointment● NeutralMajor
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.
5 Oct 2021asset acquisition disposition▲ GoodMajor
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.
1 Oct 2021annual report● Neutral
AXP says it is using regulatory relief to delay lodging its audited full-year accounts, and releases unaudited figures for the year to 30 June 2021. Visible figures show revenue of A$5.68m and a profit of A$5.23m, against a A$9.16m loss the year before; the text does not explain the swing.
27 Sept 2021listing compliance notice▼ Bad
The court application was delayed because ASIC sought clarification. AXP now expects procedural orders on or before 30 September, and the suspension remains until then. This delays the expected resumption of trading.
24 Sept 2021listing compliance notice▼ Bad
AXP answers an ASX query on how Elite Mining's press release on the deal appeared on 13 August, before AXP's own announcement. It calls this a genuine oversight, says Elite's release did not breach Listing Rule 15.7, and says its disclosure policy has been reissued.
16 Sept 2021listing compliance notice▼ BadMajor
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.
15 Sept 2021material agreement▲ GoodMajor
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.
10 Sept 2021production update● Neutral
August net revenue was about A$1.8m, flat on July; gas and NGL revenue rose to A$1.25m while oil fell to A$516k. Unsold oil is 22,152 bbl. The company expects to comfortably beat June quarter revenue. Shares remain suspended pending the Heads of Agreement.
27 Aug 2021listing compliance notice● Neutral
AXP replies to an ASX query on the 9 August revenue release, saying the information was price sensitive and was released within six business days of month end. It says it did not seek a trading halt as the release did not meet ASX guidance.
16 Aug 2021listing compliance notice● Neutral
ASX pauses trading in AXP shares pending a further announcement. Short-term procedural step ahead of the suspension.
16 Aug 2021listing compliance notice▼ BadMajor
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.
9 Aug 2021production update▲ Good
July net revenue was A$1.8m, with gas and NGL revenue up 42% to A$1.18m on the new gas contract price and fewer outages. Oil revenue fell to A$579k as inventory sales slowed. The company expects the September quarter to beat June's A$4.39m.
28 July 2021investor presentation● Neutral
Webinar slides repeat the June quarter results (revenue A$4.39m, cash A$1.39m) and add a well count: 1,009 of 1,460 wells producing, 175 to reconnect, 165 for plugging. KayJay pipeline is over 50% done, due September; independent reserves report still in progress.
23 July 2021investor presentation● Neutral
Notice of an investor webinar on 28 July at 11:00am AEST with the Chairman and Sam Jarvis, covering quarterly results, well inventory and field development. No new information.
22 July 2021auditor change● Neutral
Pitcher Partners (Perth) replaces Grant Thornton as auditor, starting with the year to 30 June 2021, after a tender process. Grant Thornton resigned with ASIC consent. Shareholders will be asked to ratify the appointment at the next AGM.
22 July 2021quarterly activities report▲ Good
First full quarter with Magnum Hunter: net revenue A$4.39m (prior A$1.73m), 24,594 bbl oil sold, gas 694 MMcf. Cash was A$1.39m excluding 23,215 bbl unsold oil. Board says no capital raising is needed. Outages hit volumes; final Trey payment of ~A$585k is due October.
9 July 2021other● Neutral
Fremont Petroleum Corporation (ASX:FPL) becomes AXP Energy Limited, ticker AXP, from 12 July 2021, as approved by shareholders on 10 June. Name change only; no change to assets or operations.
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.