Each one in plain English, with the numbers worked through for a shareholder.
26 Mar 2019capital raising announcement▲ GoodMajor
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.
What it means for a shareholder
395m new shares at A$0.013 to raise about A$5.1m. That's 24% dilution: every existing holder's slice gets 24% smaller. If you held A$1,000 of shares (76,923 at the issue price), your slice goes from 0.00604% to 0.00461% of the company. To keep it you'd need 23,878 more shares - about A$310 at the issue price.
March 2019 investor presentation repeats known points: Powell flowed 220 BOE/d, Schlumberger collaboration, 500+ potential locations, P90 resource of 54m bbl oil and 540 Bcf gas, and ~100 bopd current production. No new results disclosed.
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.
Half-year to 31 December 2018: production 15,923 barrels and oil revenue A$650,561 (plus A$185,088 from Kentucky JV). Gas offtake with a large industrial company remains in final negotiation and unsigned. Largely repeats the quarterly report; financial statements were not in the text provided.
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 back on JW Powell #23-25 has recovered about 24% of frack fluid, aiming for ~30%. Natural gas appeared during flow back, described as an encouraging sign. No flow rate yet.
Fracking and completion of JW Powell #23-25 were done and flow back of frack fluids has begun, likely to take about 14 days. The CEO says the logs look excellent. No flow rates are reported yet.
Completion of JW Powell #23-25 is under way, with frac tanks and water arriving on site. The fracture stimulation is scheduled for next week, a week behind schedule because of poor US weather.
Notice of a Boardroom Media audio interview with Chairman Guy Goudy following the 16 January Powell drilling result. The announcement itself contains no new information.
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.
JW Powell #23-25 has been drilled through the Pierre to 4,896 feet, cased and cemented, and is now drilling the production section to about 6,000 feet. Drilling and completion are still expected before end of January; Vespucci #1 will be flow tested after Powell.
JW Powell #23-25 spudded on 16 December; it has drilled and cased the conductor to 100 feet and is drilling the surface section to about 1,000 feet. Target depth is ~6,000 feet in the Niobrara; drilling and completion are expected before end of January.
JW Powell #23-25 is set to spud this weekend, with completion targeted by end of January. Vespucci #1 is shut in to build pressure ahead of a Pierre flow test next month. Management stresses gas wells matter as a very material gas offtake deal is in late-stage talks.
Prospectus offering options linked to the September placement: 257.1m options to placement participants (one per two shares), 50m to advisors, 13.6m to directors and 357,143 to a previous placement subscriber. No new cash is raised from the shares; this is the paperwork for the promised options.
Vespucci #1 is at 4,800 feet after passing through the shallower Pierre Formation, where cuttings showed strong signs of oil and gas. Fremont will production-test the Pierre first and drill the final ~1,200 feet to the Niobrara after Powell #1. Powell is expected to spud mid-December.
The board cancelled the long-term incentive performance rights (Classes E to I) proposed for related parties in the AGM notice. The short-term incentive rights (Classes A to D) still go ahead, subject to shareholder approval.
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.
Fremont received its Colorado drilling permit for Amerigo Vespucci #1, with machinery on site and spud due this week, about a month after the early-October target. A permit for the second well, Powell #1, has been submitted.
Vespucci #1 spud slips from early October, due to well design work and awaiting the drilling permit. An unnamed global service firm is appointed to fracture stimulate Vespucci and Powell #1. Production has risen to 120 bopd from 100 after workovers.
Annual report for the year to 30 June 2018. The chairman/CEO letter says production stabilised at 100 bopd, resources rose to 540 Bcf gas and 55m barrels oil, and a gas sales solution is close. Text provided is truncated, so no financial figures are available.
Notice that CEO Tim Hart gave a Boardroom Media interview on production growth, acreage, gas sales strategy and the drilling program. No new information is in the announcement itself; it only links to the interview.
Vespucci #1, a vertical Niobrara well ~540 metres from C11-12, is scheduled to spud in early October, first of two back-to-back wells this year. Digital Formation estimates up to 470,000 barrels of oil equivalent in place in one section. Rig and crew secured.
Oil production is steady at about 100 bopd, 80% from Pathfinder, after fire-ban shut-ins were lifted. About 2,170 barrels in tanks (A$214,000 gross, A$148,000 net) await collection. Company says revenue covers monthly costs of about US$105,000.
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.
What it means for a shareholder
536m new shares at A$0.007 to raise about A$3.8m. That's 44% dilution: every existing holder's slice gets 44% smaller. If you held A$1,000 of shares (142,857 at the issue price), your slice goes from 0.0207% to 0.0116% of the company. To keep it you'd need 110,696 more shares - about A$775 at the issue price.
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.
Corrects transposition and line-item errors in the June quarter cash flow report: receipts from customers were $344k, not $334k, and some planned outflows were reclassified. Section totals are unchanged.
Replying to an ASX query on its cash position, Fremont says it expects similar revenue and costs next quarter, but negative cash flow once $250k of development spending is included. It says it could raise capital and is confident of continued quotation.
Fremont lodged an interconnection request with Kinder Morgan's pipeline and plans to fund gas infrastructure with bank debt backed by US Department of Agriculture guarantees. Pipeline costs are being finalised; no binding gas sale or loan is yet signed.
23 July 2018security holder rights change● Neutral
51,950,014 unlisted 4.5c options held by 125 holders expired unexercised on 15 July 2018 and were cancelled. No new money came from them. Administrative notice.
Fremont signed an option to acquire another 1,660 net acres, taking Pathfinder to about 21,500 acres. Terms are confidential, with activity not required until 2020. The pending Gustavson resource report will not cover this new acreage.
