30 Sept 2019other● Neutral
Corporate governance checklist (Appendix 4G) lodged with the annual report, dated 23 September 2019. Administrative only, with no new information.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
26 Sept 2019flow test result▲ Good
Vespucci #1 is producing daily commercial oil, with peak flow of up to 19 barrels an hour, and about 35% of frack fluid recovered. Oil is going into tanks for sale. The formal IP rate is promised very shortly.
19 Sept 2019flow test result▲ Good
Vespucci #1 has started flowing crude oil and natural gas, with about 20% of frack fluid recovered. No rates are given; the IP rate must wait until roughly 30% recovery.
16 Sept 2019drilling progress report▲ Good
First hydrocarbon shows appeared at Vespucci #1 over the weekend, with about 13% of stimulation fluid recovered. About 30% is typically recovered before an initial production rate can be set.
12 Sept 2019drilling progress report● Neutral
Vespucci #1 flow-back equipment is installed and hydrocarbons are expected within weeks. Fremont says work has begun on an updated resource report, with a material upgrade to the current P90 450 Bcf figure likely and publication expected next month.
10 Sept 2019drilling progress report● Neutral
Vespucci #1 is flowing back stimulation fluid and now has a pump jack installed. Five stages hit all four Niobrara benches, versus one stage at Powell. The IP rate is still to come; the CEO also says the seismic found shallower targets.
16 Aug 2019price query● Neutral
Responding to an ASX query on its June quarter cash burn, Fremont expects further negative cash flow and cites USDA-backed loan talks and possible raisings. Revenue is US$75,000-100,000 a month. It says it relies on LR 3.1A for confidential material transactions.
13 Aug 2019drilling progress report● Neutral
Vespucci #1 stimulation is complete: five frac stages between 5,100 and 5,500 ft in the Niobrara. Flow-back lasts about 21 days, after which an initial production rate is expected. This ends the stimulation step but gives no flow result yet.
1 Aug 2019investor presentation● Neutral
Notice of an Investor Stream audio and video interview with Executive Chairman Guy Goudy on Vespucci operations and gas offtake. The announcement itself contains no new information.
31 July 2019quarterly activities report● Neutral
June quarter: 6,033 barrels produced, steady on the March quarter's 6,043; oil receipts A$255,583 plus A$82,980 Kentucky JV. Operating cash flow was negative A$306,985. Powell is still shut in and the offtake deal is unsigned. Vespucci completion continues.
25 July 2019drilling progress report▼ Bad
Vespucci #1 stimulation, expected the week of 16 July, is delayed by 'minor operational delays' to early next week. It is a further slip with no new results.
16 July 2019drilling progress report● Neutral
Radial tunnels are now drilled into the Vespucci target zones, with the main frac due later that week. Gas offtake talks are said to be progressing favourably, though still unsigned after an extended period. A Kinder Morgan pipeline tie-in is also being pursued.
2 July 2019drilling progress report● Neutral
Schlumberger is again collaborating, using radial jet drilling to cut tunnels into four Niobrara benches and one Codell zone before a multi-zone frac. Frac crews mobilise in coming days. IP rate is still to come.
26 June 2019drilling progress report● NeutralMajor
Completion has begun on Vespucci #1, with a multi-stage frac of the Niobrara and Codell. Greenhorn stimulation is dropped because unstable shale above it risked the main Niobrara target. This narrows the earlier plan to stimulate all three zones.
14 June 2019other● Neutral
Fremont posted website video of oil being removed from the Vespucci #1 well bore, plus Powell flaring and drilling footage. Completion works start next week. No new data.
13 June 2019drilling result▲ GoodMajor
Vespucci #1 logs indicate oil and gas in three zones: Niobrara 546 ft, Greenhorn 92 ft and Codell (stated as 77 ft in the headline, 72 ft in the text). Free oil continues to enter the well. Stimulation of all three zones is under assessment; no flow rate yet.
12 June 2019regulatory community update▲ Good
Recording for the 3D seismic over 1,173 acres around the Powell well is finished. Processing and about six weeks of interpretation follow before results are reported. Vespucci logging is nearly complete and frac crews are mobilising.
5 June 2019drilling result▲ GoodMajor
Vespucci #1 intersected crude oil: 154 of 199 joints of drill string (4,620 ft) came out covered in oil. The company sees early signs of a fracture network producing oil under pressure. Logging expanded to all four Niobrara benches, Codell and Greenhorn. No flow rate yet.
4 June 2019drilling result▲ GoodMajor
Amerigo Vespucci #1 reached its 5,977 ft target depth, with strong oil and gas shows on mud logs through the bottom 1,000 ft. Logging starts within 24 hours and completion later this week. These are drilling shows, not a flow result.
4 June 2019security holder rights change● Neutral
Fremont's 74,088,963 listed 6c options (FPLOA) expire 30 June 2019; ASX waived individual expiry notices as the options are well out of the money. Shares closed at $0.010 on 31 May. Exercise is unlikely.
27 May 2019other▲ Good
Independent lab tests on Powell production show gas of 1,201 BTU and sweet 34.8 API oil. Powell stays unproduced until a first gas offtake agreement is finalised; negotiations continue and no agreement is signed.
22 May 2019investor presentation● Neutral
Notice of an audio interview with CEO Tim Hart on Investor Steam about the petrophysical analysis. The announcement itself contains no new information.
21 May 2019other▲ Good
Schlumberger's petrophysical evaluation of the Powell well says the Niobrara there is analogous to DJ Basin/Wattenberg examples, calcareous and mostly organic rich. Three intervals were chosen for stimulation. It is a log interpretation, not a new flow result.
16 May 2019drilling progress report● Neutral
Vespucci #1 is at about 5,000 feet, at the top of the Niobrara, with ~1,000 feet left to the ~6,000-foot target. Drilling is on schedule and the 3D seismic is on track to finish in May. No hydrocarbon results reported.
15 May 2019capital raising announcement▲ Good
Shareholders approved Tranche 2 of the March placement: 76,920,045 shares at $0.013, completing the A$5.1m raise announced 26 March. This resolves the open approval and funds continued Pathfinder drilling.
What it means for a shareholder
76.9m new shares at A$0.013 to raise about A$999,961. That's 4.6% dilution: every existing holder's slice gets 4.6% smaller. If you held A$1,000 of shares (76,923 at the issue price), your slice goes from 0.00483% to 0.00461% of the company. To keep it you'd need 3,718 more shares - about A$48 at the issue price.
Create a free account to see this worked out for your own holding.
13 May 2019listing compliance notice● Neutral
In reply to an ASX query on its March cash flows (outflow A$1.281m, cash A$3.874m, A$2.35m outflow forecast), Fremont expects negative cash flow to continue but says it can keep operating. It earns ~A$100,000 a month; Tranche 2 (A$999,960) goes to an EGM on 15 May.
10 May 2019drilling progress report● Neutral
Vespucci #1 intermediate casing is cemented and drill string is going back in. Target depth of ~6,000 feet is expected within 12 days, followed by a five-day logging program. No hydrocarbon results yet.
2 May 2019drilling progress report● Neutral
Rig is on site and Vespucci #1 drilling restarts this week to finish the remaining ~1,200 feet. The 3D seismic program is well advanced, with completion expected mid-May and results to be published afterwards.
30 Apr 2019quarterly activities report● Neutral
March quarter: 6,043 barrels produced (below the December quarter's 8,003), revenue A$195,500 plus A$46,004 Kentucky JV. The Powell well is shut in awaiting a gas offtake agreement. Placement funds the drilling and seismic; Powell cost about US$1.5m.
11 Apr 2019drilling scheduled● Neutral
Vespucci #1 rig mobilisation starts 16 April, with drilling of the final ~1,200 feet likely late April or early May. Schlumberger will again collaborate on completion. Drilling was halted at 4,800 feet in December; this confirms the planned restart.