Blue Star Helium Ltd

The helium offtake with the unnamed US buyer, due to expire 31 August 2026, is extended to 31 March 2027 at a fixed price, still covering all Pinon Canyon output. This resolves the near-term expiry catalyst; long-term offtake talks continue.

material agreement

First production tube trailer sold and leaving Pinon Canyon, ending the commissioning phase; the first trailer under the June offtake is being filled. Uptime has risen. Three new wells are planned for H2 2026, subject to permit, with well deepening under review.

production update

First formal helium offtake: a 3-month fixed-price agreement with a major US industrial gases buyer for all Pinon Canyon output, expiring 31 August 2026. Price reflects spot and is confidential. Long-term talks and CO2 discussions continue. Plant still filling trailers intermittently.

contract award

Firm commitments for an oversubscribed A$10.0m institutional placement of 1,666,666,667 shares at A$0.006. Tranche 1 (A$6.0m, 997.7m shares) uses the rights shortfall and existing capacity; Tranche 2 (A$4.0m) needs approval at the May AGM. Funds go to Galactica, Pegasus and working capital.

capital raising announcement

Rights issue closed with applications for 212.7m shares, raising about A$1.06m, roughly 20% take-up. The A$4.4m shortfall (879m shares) may be placed until 23 April 2026 at no less than A$0.005. Total raised so far is far below the A$8.2m headline.

capital raising announcement

Pinon Canyon plant start-up completed and refined helium produced at Galactica, meeting the December 2025 target. Helium sales are expected from January 2026 via short-term contracts, with long-term offtake talks continuing.

production update

Raising up to A$8.2m at A$0.005: a A$2.72m placement of 544m shares with free 0.6c options (1 per 2 shares, expiring 30 June 2026), plus a 10-for-33 rights issue for A$5.46m. Follows cash of A$1.905m at 30 September.

capital raising announcement

Signed a two-year equipment lease with Kinder Morgan for the amine unit that separates CO2 at Galactica, sized for up to 4.2 MMscfd of raw gas and up to 37,000 tons a year of CO2. First helium still due December; CO2 sales H1 2026.

contract award

Blue Star elected not to exercise its option to buy the Wiepking-Fullerton helium assets in Lincoln and Cheyenne Counties after evaluation. It says capital is better spent bringing Galactica to market and developing Las Animas. This ends the growth thread opened in December 2024.

asset acquisition disposition

Raising A$4.5m through a placement of 908m shares at A$0.005, with one free option per two shares (1c, two years) subject to approval. Funds go to plant civils, gathering system and production facilities at Galactica. Tranche 2 needs a September general meeting.

capital raising announcement

The six-well 2025 Galactica campaign is complete, and the company now targets first commercial helium production from the Pinon Canyon Plant in H2 2025. This moves the earlier H1 2025 target back. Plant design, civil works and well tie-ins remain to be done.

production update

Jackson 29 is flowing naturally at over 320 Mcfd, with projected constrained rates of 350-450 Mcfd (max 550). Helium is up to 3.30% air-corrected with 48.66% CO2, the highest helium and strongest flow of the campaign so far.

flow test result

Las Animas County approved a Major Facilities Permit (15 April 2025) for the Pinon Canyon helium and CO2 processing plant. The company calls the plant a critical-path item. This clears a key permitting step on the way to first production; construction funding and timing were not stated.

regulatory community update

Jackson 4 reached total depth at 1,260 feet with 62 feet of gas-saturated Lyons Sandstone, no water, and natural flow like Jackson 31. Lab helium results are pending. The rig moves to Jackson 29, the third well.

drilling result

Ma State 16, on the WFE option assets, held a constrained 2,500 Mcfd with only 60 psi drawdown, and a modelled open flow of 33,000 Mcfd. Helium was 1.32-1.36%. Bubba State 3 is next, and the option decision is still pending.

well test result

Jackson 31 is flowing naturally at about 250 Mcfd, with projected stabilised rates of 300-400 Mscfd and a 500 Mscfd maximum. Early helium is up to 2.2% air-corrected; Blue Star expects 2.3-2.5% in the reservoir, which is an estimate. Beats State 16's 250-350.

flow test result

New wellhead samples at State 16 show helium of 2.17%, up from the 1.65% reported in June 2024 (1.90% air-corrected). Wellhead pressure was 10 psig. Blue Star attributes this to reservoir equilibration and says it could apply to other historic wells.

well test result

Jackson 31 reached total depth at 1,210 feet, with 57 feet of gas-saturated Lyons Sandstone, no water, and natural flow. Helium and CO2 lab results are pending. The rig moves to Jackson 4. First campaign well confirms gas.

drilling result

Jackson 31 spudded, the first well of the Galactica development campaign, after weather delays. It targets the Lyons formation, and Helium One funds the first US$450,000. No results yet.

drilling spud

Blue Star took an option to buy helium assets in Lincoln and Cheyenne Counties, Colorado, about 100 miles north of its Las Animas projects, or the full portfolio including oil and gas. Funding via debt or JV partners is being evaluated; entry cost is staged via well testing. This explains the suspension.

asset acquisition disposition

At Blue Star's request, trading was suspended pending an update on an acquisition. A trading halt was requested on 16 December, and the suspension was to end by 27 December at the latest.

listing compliance notice

The Helium One farm-in is complete: it earns 50% of Galactica/Pegasus for US$1.5m and funding six development wells. Blue Star stays operator. This resolves the August heads of agreement; drilling is expected in Q4 2024 and first production in H1 2025.

farm in farm out completion

ECMC approved the five-well Galactica/Pegasus OGDP I, satisfying a key condition of the Helium One farm-out. Blue Star can now seek final drill permits (Form 2), with drilling planned for Q4 2024.

regulatory community update

Blue Star raised A$3.0m via a placement of 750m shares at A$0.004, far below the 2.1c of the October 2023 placement, with one free option per two shares (1c, 2 years). Tranche 2 needs shareholder approval; Canaccord is lead manager. Heavily dilutive.

capital raising announcement

Helium One will pay US$1.5m and fund six development wells (capped at US$0.45m each) to earn 50% of Galactica/Pegasus; Blue Star stays operator. Conditions include ECMC OGDP approval, with completion by 31 October 2024. First production is targeted for H1 2025.

farm in farm out agreement

Blue Star chose a small, low-capex Serenity CO2 plant (about US$1.3m) processing 500 Mcf/d to make 20-25 tons/day of beverage-grade CO2, targeting first output in H1 2025. This turns the June Serenity acquisition into a development plan; offtake talks continue.

asset acquisition disposition

Blue Star lifts its Serenity CO2 project interest from 50% to 100% (about 18,141 net acres) by assigning 1,640 net acres to Vecta and partners, with no cash or scrip. Sammons well gas is about 98.8% CO2. Adds a CO2 business alongside helium.

asset acquisition disposition

State 16 is declared a helium discovery: air-corrected helium up to 1.90%, about 70% CO2, and flow stabilised at 285 Mcfd under vacuum (peak 313). Contrasts with the anomalous Voyager wells. A new OGDP for 5 more wells has been filed.

flow test result

State 16 reached TD at 1,211 ft, with logs showing about 96 ft of gas-saturated Lyons sandstone and no water. The well flowed naturally while drilling; formal flow testing is about to start. Helium concentration is not yet known.

drilling result

State 16 SWSE 3054, the maiden Galactica/Pegasus development well, was spudded, with conductor set at 38 ft. Target depth in the Lyons is expected in 5-7 days, followed by logging and at least 5 days of testing.

drilling spud

The Voyager plan is no longer expected to be the highest-returning use of capital, though engineering reports still forecast profitable scenarios; other pathways will be reviewed. The Galactica/Pegasus State 16 development well remains on track this quarter, funded from cash.

joint venture update

Blue Star paused Voyager development and put mobilisation of the leased IACX plant on hold, after BBB #33 and Bolling #4 needed more vacuum and compression than expected. A maiden Galactica/Pegasus development well is planned for Q2 2024, funded from cash.

material agreement

BBB #33 flowed gas with about 3% helium under light vacuum, at 18 mscf/d over 8 hours. Bolling #4 SESW reached TD at 922 ft with gas-filled Lyons (~27% porosity) but showed the same anomalous low flow and pressure as BBB #33.

well test result

BBB #33 reached 935 feet, 51 feet into the Lyons, with logs showing a gas-filled reservoir (about 28% porosity). But initial flow and pressure were limited-to-no, which the company calls anomalous; possible wellbore damage is being investigated. This clouds the expected Voyager first well. The rig moved to Bolling #4.

drilling result

Sproule raised Voyager's net contingent helium resource (2C) to 857 MMscf from 643 MMscf, a 33% increase from the additional leases bought in April 2023. 1C is 388 and 3C is 1,570 MMscf. This delivers the expected resource update.

resource reserve update

The regulator gave final approval (Forms 2) for four more Voyager wells, lifting approved drilling locations to six. This follows the 30 November plan approval and the 5 December lodgement. Drilling is due to recommence in early January 2024.

regulatory community update

BBB #33, the first Voyager development well, was spudded. The surface hole was drilled to 42 feet and 13 3/8" casing cemented. The main rig, delayed from earlier plans, is still to arrive to drill the Lyons reservoir.

drilling spud

The drilling rig for BBB #33 is delayed two weeks, so drilling now completes in January 2024. First helium is pushed from Q4 2023 to Q1 CY2024. Plant installation will be re-timed to match; Form 2s for four more wells are lodged.

drilling scheduled

The regulator approved the second development plan covering four more Voyager wells, resolving the 22 November hearing thread. Six wells will be cleared once final Form 2 permits are granted. BBB 33#1 preparations are complete.

regulatory community update

Raised A$7m via a placement of 333,333,334 shares at 2.1c, a 22.2% discount to the last close of 2.7c. Funds go to the Voyager plant, wells and Galactica/Pegasus studies. A targeted A$2m share purchase plan for existing holders at the same price is proposed. Cash had been falling.

capital raising announcement

Gregg Peters, ex-Linde helium director for North America, joins as non-executive director with 9m options at 2.8c. Neil Rinaldi becomes Non-Executive Chairman; Ross Warner leaves the board but stays as President, Commercial and Legal. Board now has an independent majority.

director officer appointment

Signed the Voyager helium plant agreement with IACX: a leased 2 MMcf/d plant, paid by monthly fee with no plant build cost. About 38 MMcf net helium in the first full year is targeted, first output Q4 2023. Voyager leases are mortgaged as security.

material agreement

Blue Star said a three-well Voyager drilling program would start in August: BBB 33#1, 34#1 and an exploratory well. It submitted a four-well permit application, cut from five. The IACX plant agreements were in agreed form but unsigned, with first helium on track for Q4 2023.

drilling scheduled

Final approval for Voyager wells BBB 33#1 and 34#1 expected this month, with drilling in late Q2 or Q3. New crestal leases of 2,987 gross (1,382 net) acres should lift contingent resources. The plant lease is now expected within weeks, and a five-well permit plan will follow. First sales are still targeted H2 2023.

regulatory community update

The regulator gave final approval (Forms 2) to drill the State 09, 16, 35 and 36 development wells at Galactica/Pegasus, expected to be production wells. This resolves the permits pending since the September plan approvals. Sproule is finalising a resource update; plant configuration decision expected H1 2023.

regulatory community update

Initial Voyager plan of development: 3-4 wells, about US$2.9m pre-production capex, and a leased, third-party-operated 2 mmcf/d plant targeting 38 mmcf net helium in the first full year. First sales are targeted H2 2023; lease contract still under negotiation, expected Q1 2023.

material agreement

Logs confirm JXSN#4 as a discovery: 233.5 ft gas column, 133.5 ft net pay. Air-free helium is 6.06% in the best sample and 4.20% in another, above the earlier three wells. Flowed 124.6 mcfd while drilling; feeds the Galactica/Pegasus resource update.

drilling result

JXSN#4 reached 1,043 ft; both upper and lower Lyons flowed gas. Preliminary air-free helium is 6.5%, about double the 3.14% best of the three earlier Galactica wells. A second lab check and logs are due; results feed the Galactica/Pegasus resource update.

drilling result

Maiden Sproule contingent helium resource for Voyager (100% BNL): 2C 643 MMscf net unrisked, 3C 1,228 MMscf. Follows the BBB#1 discovery (8.8% He). Plan of development and FEED due Q4 2022 (slipped from Q3); Stage 1 plant targeted H2 2023.

resource reserve update

The regulator approved two development plans covering four Galactica/Pegasus helium well locations (100% Blue Star). Final drilling permits will be filed after written orders, with approval expected 30-40 days later. This resolves the hearing deferred from July.

regulatory community update

Scott Fenoglio, ex CFO of Ossidiana Energy with almost 20 years in oil and gas, is appointed CFO in Denver, starting immediately. He is offered 10m performance rights in 5 tranches. His role fits the move to development and offtake planning.

director officer appointment

Sammons 315310C fully penetrated the upper Lyons (1,155-1,238 ft): an 83 ft gas column with no water, flowing up to 500 mcfd. Casing is set at 1,270 ft, and the lower Lyons will be tested next. Helium content is still unknown.

drilling result

Sammons 315310C hit the Lyons at about 1,155 ft and the well blew gas. Flow tests over 48 hours gave 380-465 mcfd, similar to the Galactica/Pegasus discoveries. The operator will drill 40 ft more and retest; no helium percentage yet.

well test result

Sammons 315310C, the first Serenity well (Blue Star 50%, non-operated), has spudded after repeated slips. About 10 days to reach roughly 1,400 ft, then 7 days of testing. Net dry-hole cost about US$150k. Success would prompt a first Sproule Serenity resource.

drilling spud

Peter Kondrat, formerly President and COO of helium producer Tacitus LLC, is appointed Chief Operating Officer in Colorado. He is offered 10 million performance rights in five tranches. The appointment fits the planned move from exploration toward development drilling and production.

director officer appointment

JXSN#3 gas analysis confirms 2.14% helium in a 230 ft column, outside the mapped Galactica P50 contour. This completes the three-well water well program, all with helium. Sproule resource upgrade, with at least contingent resources expected, and SIGIT FEED work continue.

drilling result

Helium discoveries were declared at three Galactica/Pegasus water wells, with helium up to 3.14%, gas columns of 101+ to 230 ft and flows of 202-412 mcfd. JXSN#3 gas analysis was pending, and Sproule was to update resources, with at least contingent resources expected.

drilling result

The regulator approved the final drilling permit for Sammons 315310C, the first Serenity well (Blue Star 50%, operator Vecta). Drilling is expected this quarter. This resolves the permit delay noted in the quarterly report.

regulatory community update

SIGIT is engaged to prepare a plan of development, including a processing plant design study at Voyager, due Q3 2022. Sproule is to give Voyager's first independent resource assessment this quarter. Voyager well permit applications are due to be lodged this week.

material agreement

Enterprise 16#1 reached 1,250 ft and logs show a 13 ft gas column, with a deeper gas-water contact lifting the Enterprise structure's gas column to about 78 ft (from 29 ft). Water inflow stopped testing, so no helium sample yet; a new test procedure is planned in coming weeks.

drilling result

The regulator approved Vecta's Sammons Ranch plan covering four wells. This satisfied the last condition precedent to forming the Serenity area partnership (Blue Star 50%). The final drilling permit for Sammons 315310C is to be submitted shortly, typically approved within 30 days.

farm in farm out completion

Blue Star spudded Enterprise 16#1, its first helium exploration well (100%), targeting the Lyons formation to about 980 ft. Drilling is expected to take about six days, plus about six days for evaluation and testing. It is the first of 10 wells planned for 2022.

drilling spud

The Form 2 permit to drill for Enterprise 16#1 was approved, which Blue Star understands is the first for a helium well in Colorado since the January 2021 permitting changes. This resolves the pending permit; drilling is expected to start in January 2022, weather permitting.

regulatory community update

Blue Star signed a Participation Agreement with Vecta (25%, operator) and Prospero (25%) to jointly develop an Area of Mutual Interest covering its Serenity prospect. Blue Star holds 50%, contributing 4,334 of 14,551 net acres. First well targeted early Q2 2022; resource estimate targeted Q1 2022.

farm in farm out agreement

A redrilled BBB#1 water well at Voyager confirmed a 134 ft gas column in the Lyons formation, about four times the original hole. Hill#2 was reinterpreted to show a 29 ft gas column. Offset appraisal well locations are being selected.

drilling result

Water well BBB#1 at the Voyager prospect, about six miles north of Model Dome, found a gas column in the Lyons formation. Calculated air-free gas is 8.8% helium, similar to Model Dome's 8% average. Enterprise drilling is now targeted for December 2021.

drilling result

Blue Star raised A$15m via a placement of 267,857,143 shares at 5.6c, a 15.2% discount to the last close. Funds go to well and water well drilling, leasing, development studies and working capital. Cash was A$3.3m at June.

capital raising announcement

The regulator approved the Form 2A application for Enterprise 16#1 at an uncontested hearing. The final permit to drill (Form 2) is to be submitted within days, typically approved within 30 days. This clears a major step toward the maiden well.

regulatory community update

Federal leases from the December 2020 auction were issued, confirming 32,858 net acres. Sproule's total P50 net unrisked prospective helium resource rises 39% to 13.4 Bcf. Landholding is 173,000 net (237,000 gross) acres. Enterprise permit still expected in Q3 2021.

resource reserve update

Initial application to drill Enterprise 16#1 lodged with Colorado's regulator, resolving the lodgement delay flagged in March. Final permit is now expected in Q3 2021. Applications for two more wells are planned in Q2 under a rolling permitting strategy.

regulatory community update

Executive Director Trent Spry becomes Managing Director and CEO from 14 April 2021, following Joanne Kendrick's departure. Neil Rinaldi, a finance professional, joins as Non-Executive Director. The Enterprise permit application is expected within days.

director officer appointment

Sproule assessed a new 6.1 BCF P50 net unrisked prospective helium resource across Galactica, Pegasus and Argo. Total P50 across five prospects rises 175% to 9.6 BCF. Historic wells at Galactica and Pegasus show interpreted gas shows; the December BLM acreage is excluded.

resource reserve update

The company says President Biden's orders pausing new federal oil and gas leasing do not affect its drilling plans, which target private and State land. New Colorado permit rules from 15 January 2021 mean the Enterprise application must be resubmitted, with possible delay. It is investigating whether delivery of the December BLM leases may be delayed.

regulatory community update

Won 32,858 acres at the 17 December BLM auction for US$470,253, lifting the position to about 215,000 gross (160,000 net) acres, including over Galactica and Pegasus. Issue of the leases is subject to payment and BLM approval. Drilling permits are expected early in the new year.

asset acquisition disposition

Firm commitments to raise up to A$6m via up to 171.4m shares at 3.5c, to fund a multi-well drilling program, more lease acquisitions and working capital. Pamplona Capital led, with Foster Stockbroking as co-manager. Settlement is due 26 November 2020.

capital raising announcement

Enterprise and Galileo P50 unrisked prospective helium resource rose 16% to 3.5 BCF (from the May 2020 estimate) after new leasing. The maiden drilling campaign expands from the single Enterprise well to a minimum of 3 and up to 5 wells; approvals for new locations are expected early 2021.

resource reserve update

Won 22 BLM leases over 34,848 acres for US$849,492, lifting holdings to about 164,000 gross (108,000 net) acres. This gives large contiguous positions over four more prospects (Voyager, Prometheus, Galactica, Pegasus), and may expand the maiden drilling program.

asset acquisition disposition

96.875m options were exercised at 1c, raising $968,750; the remaining 5m options in the series expired. Total raised in the past month is $3,271,620 (before costs), including the $1.32m tranche 2 still awaiting AGM approval.

capital raising announcement

Placement raises A$2,302,620.88 at 1c per share, in two tranches: A$980,621 (98.1m shares) in about a week, and A$1.322m (132.2m shares) subject to approval at the 2020 AGM. Funds go to the drilling program and working capital. Pamplona is lead manager.

capital raising announcement

Independent assessment by Sproule gives a 3 BCF P50 unrisked prospective helium resource, net to the company, across Enterprise (2,296 mmcf) and Galileo (725 mmcf). It is a first resource estimate for a company with no well drilled. One Enterprise well is planned, with dry hole cost about US$300k.

resource reserve update

Placement of 146,749,450 shares at 0.6c raising A$880,497, the maximum under current capacity, led by Pamplona for a 6% fee. Funds go to helium leasing and exploration. Aims for a 3-5 well drilling campaign starting in the second quarter of 2020.

capital raising announcement

A further 59,510 gross (14,877 net) acres leased, taking the total to 86,614 gross (38,171 net) acres, including new prospects Yamato and Argo. A US$75,000 payment is due on completion by 1 April 2020, subject to due diligence; acreage is still to be verified.

asset acquisition disposition

Acquired 21,824 acres in 63 Colorado state-auction leases for US$73,946, lifting holdings to 27,104 gross (23,294 net) acres across 9 prospects, over 1400% more net acreage. Plans a 5-well drilling programme early next year. No well drilled yet.

asset acquisition disposition

Percy Creek farm-in and option agreement in Wyoming terminated by mutual agreement, with mutual release of claims and of the seismic commitment. The company had earned no interest. It now focuses resources on helium, resolving the earlier question over Percy Creek's future.

material agreement termination

Placement of 117,399,560 shares at 0.5c raising A$586,998, using existing placement capacity, led by Pamplona. Funds go to helium leasing, exploration and working capital. Management says leasing is funded to 25,000 gross acres, then permitting for a 5-well helium drilling campaign.

capital raising announcement

Two more leases take Enterprise to 5,120 gross acres (1,010 net, up from 1,800 gross and 700 net), covering 5 soil-gas anomalies. Terms: 5 years, 12.5% royalty, no work commitment. This meets the 5,000-acre leasing target set in August. Drilling permits are targeted for 1Q2020.

asset acquisition disposition

Reply to ASX query: none of the 188 soil samples came from leased land; they were taken from public open space. The company holds only the 1,800-acre lease and a new 40-acre lease in the Enterprise area, and says it complies with Listing Rule 3.1. This qualifies the earlier survey announcements.

listing compliance notice

Shares suspended at the company's request, pending a clarifying announcement about earlier helium announcements and a response to an ASX query letter. This suggests ASX questioned the recent helium disclosures (inference from the stated reason).

listing compliance notice

First helium lease secured at the Enterprise prospect: 1,800 gross acres, 100% working interest, 5-year term, 12.5% royalty, no minimum work commitment. The company is seeking about 5,000 acres in total and targets drilling permit readiness in 1Q2020. This is the first concrete helium acreage.

asset acquisition disposition

Placement of 138,598,228 shares at 0.5c to raise A$692,991, in two tranches; the second needs shareholder approval at a July EGM. Funds go to Percy Creek, new US leases and working capital. Director Trent Spry takes 3m shares. Follows cash falling to A$0.29m.

capital raising announcement

Trent Spry, a geoscientist and former Entek Energy CEO, joins as Executive Director and will face re-election at the 31 May 2019 AGM. He is granted 16,875,000 options at 1 cent expiring 30 June 2020. Helium is now named in the strategy.

director officer appointment

First acquisition since the restructure: a farm-in and drilling option over 5,228 gross acres at Percy Creek, Wyoming. A US$275k seismic programme earns 20%, with an option to reach 100%. Unrisked best-case prospective oil resource is 75mmbbl gross; drilling is targeted for 4Q2019.

farm in farm out agreement

The Esmond #20-1 workover ended early after corroded tubing parted at about 4,500 feet, blocking access to the Upper Spraberry; the well is suspended at about US$65,000. Unrenewed exploration acreage fell to 160 net acres. Cash is about A$0.8m; acquisition due diligence is under way.

quarterly activities report

A study found bypassed oil in the Upper Spraberry on all four Big Star wells. A US$140,000 workover of Esmond #20-1 (100% working interest) is planned for October, targeting an estimated 20-40 bopd. It is the first operational step after the recapitalisation.

drilling scheduled

ASX announced the shares will be reinstated to official quotation at 10:00am on Friday 8 June 2018, ending a suspension since September 2015. There will be 331,000,017 quoted shares, plus 75m unquoted options at A$0.01 expiring 30 June 2020.

listing compliance notice

Public offer closed, raising A$1.65m before costs from 165m new shares at A$0.01. It was oversubscribed and applicants were scaled back. The company is now working to complete the recapitalisation and be reinstated to ASX trading.

capital raising announcement

Prospectus for a public offer of 165m shares at A$0.01 to raise A$1.65m, also covering resale of the 150m First Placement Shares. It is a step toward ASX re-quotation; the document warns of the risk re-quotation requirements are not met.

capital raising announcement

First Placement completed: 150m shares at A$0.0025 plus 75m unlisted options, raising A$376,875 before costs, following the 23 January 2018 EGM approval. First cash injected under the recapitalisation.

capital raising announcement

The Pager deed was fully effectuated on 23 March 2018 and terminated, ending the administration; the Creditors' Trust is set up. New board: Ross Warner (chair), Joanne Kendrick (managing director), Michael Pollak; Andrew Whitten is secretary. Next: placement, prospectus, ASX reinstatement.

director officer appointment

The Deed of Company Arrangement for a recapitalisation proposal from Pager Partners was signed 21 December 2016. A shareholder meeting will be convened to vote on it. This follows the creditors' 2 December vote; terms are not given here.

business combination

At the 2 December 2016 second creditors' meeting, creditors voted to put Antares into a Deed of Company Arrangement, with FTI's Olde and Ryan as deed administrators. This moves the company from administration towards a recapitalisation; a deed is still to be signed.

bankruptcy or receivership

Administrators began seeking expressions of interest, closing 23 September 2016, to recapitalise Antares or buy its US subsidiary's Dawson County, Texas assets. About 15,900 acres are leased (about 5,000 expired), with 34 net boe/d and 82,260 net boe reserves.

asset acquisition disposition

FTI Consulting's Quentin Olde and Michael Ryan replaced Pitcher Partners as administrators on 10 May 2016, after a creditors' meeting vote. Shares stay suspended. This ends the board's chosen administrators and puts creditor-backed ones in control.

bankruptcy or receivership

Antares' board appointed Pitcher Partners administrators on 28 April 2016, a day before the noteholder vote. Over 50% of noteholders backed an extension but 75% was needed. About A$47m of notes were unpaid; shares stay suspended and the CEO resigned.

bankruptcy or receivership

Noteholders adjourned the 31 March meeting to 29 April 2016. Redemption notices of A$24.6m exceed cash, and the trustee says non-payment is an event of default. Antares will take no action until the vote, and has sought ASIC relief to delay its annual report.

debt default or forbearance

Antares says the Wade sale agreements remain on foot but missed a 15 January 2016 completion date. A 50/50 joint venture, the KLR sales process (no bids) and a proposed US$45m loan from second-largest shareholder Equity Group Investments all failed to land. Cash is just over A$1m.

joint venture update

The sale to Wade Energy, named as buyer, has not completed. Antares lacks cash to meet redemption notices for 11.9m notes (A$23.8m). It proposes a reset date of March 2017, an interest moratorium and 4 shares per note, or administration may follow. A noteholder-requested investigator is also proposed.

debt default or forbearance

The Northern Star and Big Star sales did not close on 30 November 2015 as contracted, because Antares received a request for an extension. The board is negotiating amendments; this delays the cash the company was counting on from the sale.

material agreement

Antares says the ~USD250m Northern Star and Big Star sale to a private equity buyer is still progressing but subject to closing risk, with ~USD70m of estimated tax and costs. Noteholders hold redemption notices for 11.9m notes (A$23.8m); directors urge a vote to push the reset date to 31 March 2016.

material agreement

ASX suspended Antares from quotation because it refused to name the buyer of Northern Star and Big Star. ASX says the sale needs shareholder approval under listing rule 11.2, so the buyer must be disclosed anyway; suspension continues until compliance.

listing compliance notice

Half-year to 30 June 2015 shows a net loss of $18.3m, including a $12.5m impairment of available-for-sale assets (the Breitburn units, by inference). Cash was $7.0m against a net liabilities position of $13.1m, a sharp drop from the prior year's $504k profit and $20.3m cash.

half year report

Antares signed agreements to sell Northern Star for USD148.8m and Big Star for USD105.1m to an unnamed private equity buyer, about USD250m gross pretax, closing by 30 November 2015. This would sell its remaining Permian projects after the Southern Star sale; shareholder meeting to be announced.

asset acquisition disposition

Antares sold Southern Star to Breitburn for USD50m plus 4.3m Breitburn units, signed and closed 24 October 2014. It says the Macquarie debt is repaid to zero and the facility is being rolled over as a USD200m, 5-year line. Continues the Permian divestment path.

asset acquisition disposition

Antares announced an on-market buy-back of up to 25.5m shares (10% of the 255m on issue), starting 10 November 2014 for up to 12 months, through Hartleys. Follows the Southern Star sale proceeds.

capital raising announcement

June quarter report: Lone Star's seven resolutions all failed at the 22 July general meeting, resolving the activist contest. Net production was 52,173 bbl oil and 255,979 mcf gas, with receipts of $6.19m; horizontal Wolfcamp planning continues at both stars.

quarterly activities report

After a trading halt, Antares disclosed an unsolicited, indicative and incomplete proposal to buy the whole company. It has sought clarification and sent an amended term sheet; shareholders are told to take no action. No price is given.

business combination

Antares received a confidential, non-binding USD300m letter of intent for all its Permian assets, with closing by 1 October 2014 if a sale agreement is signed. Echoes the USD300m deal withdrawn in February 2014; Cruickshank is meeting the bidder.

material agreement

Antares raised $19.5m through 9.75m convertible notes at $2.00, heavily oversubscribed per the company. Notes on issue rise to 29.75m ($59.5m face). Funds go to its three Permian projects and other opportunities.

capital raising announcement

Lone Star, holding 5.01% (12.77m shares), formally requested a general meeting to elect five nominees and remove directors McAppion and Shoemaker. The board is considering its response. Turns the earlier press report into a formal board challenge.

other

Antares received applications for 1,415,000 more AZZG convertible notes at $2.00, raising $2.83m for its Permian projects. Notes on issue rise to 20m ($40m face), continuing the funding path chosen after the sale was withdrawn.

capital raising announcement

Antares withdrew from the USD300m Permian asset sale and will instead fund Northern Star development with 3D seismic and a first horizontal well. It cites funding options: A$70m of unissued note capacity and the Macquarie facility (about USD33m drawn). This reverses the pending sale.

material agreement termination

Antares' shares and notes were suspended at its own request, after a trading halt from 28 January, pending an operations announcement expected by 5 February 2014. This comes while the USD300m Permian sale was still pending.

listing compliance notice

Antares placed 5m more convertible notes at $2.00 to institutions, raising $10m and taking notes on issue to 15m ($30m face). Funds are for faster drilling at Northern Star and the Southern Star northern extension.

capital raising announcement

Addendum details the USD300m Permian sale: shareholder approval is required, with a meeting expected November 2013. Price adjustments are capped at 10%, Macquarie liens must be released, and the buyer stays unnamed. Pro-forma cash is about A$302.6m.

asset acquisition disposition

Antares signed a binding agreement to sell all its Permian assets for USD300m, with closing expected 15 January 2014 subject to conditions. This firms up the June letter of intent; the buyer is not named.

asset acquisition disposition

Antares raised $5.96m by placing 2.98m convertible notes at $2.00 each to institutions, taking notes on issue to 10m ($20m face value). Funds are for faster drilling at Northern Star and the Southern Star northern extension.

capital raising announcement

Noteholders passed the resolution and the trust deed amendment was executed. Maturity extends ten years (to 30 Oct 2023, not 31 Oct as first said), cap is $100m, and each note converts into three shares. Resolves the 5 July proposal.

security holder rights change

Antares asked convertible noteholders to approve changes: maturity extended from 31 Oct 2013 to 2023, issue cap raised from $60m to $100m, and conversion raised from one share to three per note. Interest stays 10%. Needs 75% approval.

security holder rights change

Antares signed a non-binding letter of intent to sell all its Permian assets for USD300m, with a binding agreement to be negotiated within 60 days. This would be a sale of its core business, far beyond the USD10m Hawkville sale; buyer not named.

asset acquisition disposition

The USD10m sale of the non-core Hawkville interests has completed, as expected in early May. This resolves the April agreement; the text gives no detail on use of proceeds.

asset acquisition disposition

Antares signed an agreement to sell its non-core Hawkville interests for USD10m, closing expected early May subject to conditions. This continues the exit from legacy Eagle Ford exposure and sharpens the Permian focus.

asset acquisition disposition

2012 annual report: 2P reserves rose 96% to 53,201 Mboe and 3P to 66,827 Mboe, finally delivering the delayed reserve update. Revenue was A$26.5m (up 197%) and production 224 Mboe. Macquarie debt is about USD45m, down from a USD60m peak.

annual report

Matt Gentry resigned as Director and COO on 16 Jan 2013; no reason or successor is stated. Cozart 19 No. 1 averaged over 150 bopd on pump, with over 200 boepd; Ray No. 6 over 290 boepd. Robinson No. 1 reached 10,500 ft with hydrocarbon-bearing intervals.

director officer appointment

Antares bought 1,120 gross (1,034 net) more mineral acres at Southern Star, taking it to 4,450 net acres and over 205 drilling locations. Deal is complete, with drilling to begin shortly. Price not stated.

asset acquisition disposition

Southern Star is now formally held by production after Alamo No. 2 flowed 166 bopd (about 250 boepd). Achieves the goal set when the project was acquired in April 2011; 55+ further wells needed on 40-acre spacing. Resolves the lease-holding thread.

drilling result

Antares acquired the interests of Big Star Oil & Gas in the Big Star project, giving 18,786 gross (15,215 net) acres, up from about 13,125 net. Targets Lower Mississippian horizontal play where neighbour SM Energy reports 7-day IPs of 571-656 boepd. Price not stated in the text.

asset acquisition disposition

With Alamo No. 2 drilled, all drilling needed to hold the Southern Star project by production is complete. Four drilled wells (Dagwood No. 1, McCann No. 2, Ray No. 6, Alamo No. 2) still await fracs. Resolves the lease-holding goal.

drilling result

May net output jumped to 1,816 boepd from 1,068 in April, up 70%, as 2012 drilling-program wells came on and gas curtailment ended. Company says 30-day rates beat its type curve and reiterates the 2,500 boepd end-2012 target.

production update

Archer 16 No. 1 (Northern Star) is flowing over 90 bopd, which the company calls commercial and says supports more wells there this year. 30-day rates: Live Oak No. 2 313 boepd, Cottonwood A 246, Aloe Vera No. 2 184. Ray No. 5 15-day rate is 387 boepd.

well test result

Cottonwood A No. 1 produced 267 bopd, estimated over 400 boepd with gas, the best rate Antares has achieved in Southern Star. Live Oak No. 2 made over 150 bopd. Archer 16 No. 1 frac is done and Ray No. 5 is being fracked.

well test result

2011 annual report: 1P reserves 15,566 Mboe (up 2,209%), 2P 27,195 Mboe, 3P 42,621 Mboe. Sales revenue A$8.92m (+131%); production 145,602 boe. US$30m drawn on Macquarie facility; 260m shares after buy-back. The A$1.00 share price target for end-2011 was missed. No new shares planned for two years.

annual report

Antares bought Dinero's 1.3-2.7% working interests across most Southern Star leases, plus 224 net acres (320 gross) in western Howard County worth eight more drilling locations. No price given. It adds a little control and acreage to Southern Star.

asset acquisition disposition

Antares completed the first US$10m drawdown of the US$200m Macquarie facility announced 31 October. It plans to keep drawing in US$10m steps for the 30+ well program, drawing US$50m by end-2012. Drilling has reached 16 wells.

debt financing

Southern Star now produces over 1,400 boepd gross, passing the 1,000 target, as equipment arrived. Antares is above 1,350 boepd net to working interest. Targets: over 2,500 boepd gross by end-2012, over 4,000 in 2013, and over 2,000 net in 2012.

production update

Antares signed a committed letter of offer for a US$200m, 36-month Macquarie term debt facility at LIBOR + 4%. It funds a 30+ well program to end-2012, including 24 at Southern Star, with US$50m to be drawn by then. This addresses the falling cash (US$17m in Sept). The share buy-back and no-new-shares stance continue.

debt financing

Harrison No. 3 was fracked and is flowing to sales, averaging over 250 boepd (about 200 bopd and 320 mcfpd). This resolves the F41 low-permeability question. Harrison No. 2 will add a third reservoir, Anomalina B2.

well test result

Antares agreed to buy a producing Wolfberry property in Howard County, Texas, from Clear Water for USD62m cash. It brings 75.3% working interest, 12.6 MMboe proved and 27 MMboe proved plus probable reserves, and 786 boe/d from 24 wells. This is the producing-asset acquisition the company had been seeking.

asset acquisition disposition

Antares set up a 30,000-acre area of mutual interest in the northern Midland Basin with a local operator, acquiring 75% of leases in it. Over 6,000 acres are leased, with over 10,000 expected; drilling starts June 2011 at about USD2.0m per well. It builds on the Permian entry.

farm in farm out agreement

Harrison No. 3 reached 13,453 ft and logs confirm oil and gas in all three targets (F41, Anomalina C and B). The F41 will be perforated and put on production; initial rates to be announced. This resolves the well's drilling thread; weekly updates end.

drilling result

Antares signed a purchase agreement for 7,681.5 net acres in the Wolfberry trend of the Permian Basin, in the northern Midland Basin. This is its first move to redeploy sale proceeds, a new area after Eagle Ford. Price is not stated; more Permian deals are being negotiated.

asset acquisition disposition

2010 annual report shows net profit after tax of A$75.379m, driven by the USD200m Yellow Rose and Bluebonnet sale. The chairman says A$31.5m was raised in 2010 and 20.5m shares bought back at under 40c; no new shares are planned for three years. Reserves detail is truncated.

annual report

Drilling began on Harrison No. 3 at Oyster Creek (Antares 67.5%, Slawson operator), now at 2,412 ft with planned depth of 13,600 ft. It targets the F41, Anomolina C and B sands seen in Harrison No. 2, which makes 222 boe/d.

drilling spud

Sale closed 15 December 2010, giving Antares USD156.2m. It aims to become an ASX top-10 oil and gas company by market cap by end-2011 via buying producing assets, with a purchase agreement expected in Q1 2011. First Term Assignment cheque banked.

other

Chesapeake agreed to buy Yellow Rose and Bluebonnet (23,180 net acres) for USD200m cash, closing expected by 15 December. Antares' share is USD156.2m (about A$0.58/share per the company). This resolves the sale process; Antares keeps its 8,900-acre Term Assignment.

asset acquisition disposition

Trading in AZZ and AZZG, suspended since 27 October 2010, is extended to 30 November. The company says this guards against misinformation during the Yellow Rose and Bluebonnet sale. A buyer shortlist is set; it expects to sign a binding contract or withdraw by then.

listing compliance notice

No. 7H reached 15,417 ft with over 4,500 ft of Eagle Ford drilled and strong shows throughout. The data room for the Yellow Rose and Bluebonnet sale is open with strong interest, tentatively closing 20 October. Operational updates on these projects stop meanwhile.

drilling result

Petrohawk completed the Donnell 457 No. 1H, the first Term Assignment well, at 563 bo/d and 3,628 mcf/d (1,168 boe/d) over 24 hours. This resolves the frac thread; Antares gets a post-payout back-in interest. Petrohawk is now drilling the Dilworth No. 1H, planned at over 8,000 ft lateral.

drilling result

Antares received an unsolicited written expression of interest in its McMullen County leases: Yellow Rose and Bluebonnet (about 24,000 acres) plus the Petrohawk term assignment (about 9,000 acres). With San Isidro it is hiring Tudor Pickering Holt to run a sale process. A possible exit from its core assets; no price yet.

asset acquisition disposition

Antares placed 20.5m new shares at 60 cents to institutions, raising $12.3m for Eagle Ford development. The price is a 7% premium to the prior close of 56 cents. It follows the $19.2m placement at 64c in February 2010.

capital raising announcement

Frances Dilworth No. 3H flowed at an initial rate of 941 bo/d and 1,596 mcf/d, or 1,207 boe/d, beating the No. 2H's 790 bo/d plus 900 mcf/d. It is the first Yellow Rose development well and the second of ten 2010 wells. Weekly reporting on the well ends.

flow test result

Frances Dilworth No. 3H reached 15,735 ft with over 4,650 ft of lateral in the Eagle Ford, longer than the 4,000 ft guided. The company says mudlogging shows exceeded the No. 2H. A 14-stage frac is due in early May, and No. 4H is expected to spud in the first week of May.

drilling result

Reserve and resource evaluation as of 31 Dec 2009 for McMullen, Wharton and Brazoria Counties, using $80/bo and $5/mcf. The annual report headlines proved 1,486 Mboe, proved plus probable 8,155 Mboe and 2P+possible 22,814 Mboe. Detailed tables were truncated.

resource reserve update

Drilling began on Frances Dilworth No. 3H using the Nabors M34 rig, a planned 15,000 ft measured-depth Eagle Ford well. It is the first of nine wells under the Nabors contract, in the 2010 campaign of ten wells.

drilling spud

Antares completed a placement of 30,000,000 shares to raise $19.2m (64 cents per share, calculated), led by Patersons, with a heavy scale-back. It funds ongoing development of the Eagle Ford acreage and adds institutional holders.

capital raising announcement

Frances Dilworth No. 2H initial production is 790 bo/d plus 900 mcf/d, or 15.4 Mmcfe/d on an 18:1 basis, beating the 11.4 Mmcfe/d forecast. This confirms the Yellow Rose Eagle Ford discovery as a producer; oil content is far above neighbouring wells.

flow test result

Antares signed a long-term contract with Nabors for a PACE M-Series rig to drill nine horizontal Yellow Rose wells in 2010, with an option to keep the rig for 2011. The rig is due at the Frances Dilworth No. 3H in mid-February; lateral about 4,200 ft.

contract award

Locations for Frances Dilworth Nos. 3H and 4H are set, with drilling targeted to finish by end of Q1 2010. Antares plans ten Yellow Rose wells producing by end 2010, ten more drilled in 2011 and fifteen in 2012. Weekly updates will follow the No. 2H frac.

drilling scheduled

Antares issued 5,000,000 new shares at 40 cents (about $2.0m, calculated) to Galena Asset Management, a Trafigura subsidiary, introduced by Truestone Capital. The shares are an unsolicited placement to a new top-twenty holder.

capital raising announcement

Anomalina C sand in Harrison No. 2 (Oyster Creek, 75%) was perforated and is flowing about 200 bo/d and 500 mcf/d while cleaning up. This is the recompletion expected for 2H 2009; the lower F-41 sand has already produced over 135,000 boe.

production update

NuTech's NuStim modelling forecast the Frances Dilworth No. 2H at an initial 6,000 mcf/d plus 300 bo/d (11,400 mcfe/d), with ultimate recovery of 6.25 Bcfe. NuTech's 2C contingent resources were restated at 802 Bcfe for Yellow Rose and 298 Bcfe for Bluebonnet.

resource reserve update

NuTech certified contingent resources for Antares's 87.5% of Bluebonnet: 2C of 298 Bcfe (1C 238, 3C 330), including 11.5 million barrels of condensate. This is a contingent resource, not booked reserves, and comes a day after the acquisition.

resource reserve update

Antares acquired the 5,754 acre Bluebonnet project in McMullen County, about four miles north of Yellow Rose, at 87.5% working interest with SIDC operating at 12.5%. Its total Eagle Ford interest is now 32,586 acres.

asset acquisition disposition

NuTech certified contingent resources for Antares's 75% of 17,300 Yellow Rose acres: 2C of 802 Bcfe (1C 746, 3C 855). This is a contingent resource, not reserves, and excludes the 974 newly acquired acres.

resource reserve update

Drilling of the Frances Dilworth No. 2H finished: the lateral reached about 3,400 ft, longer than the 3,000 ft planned, all in gas-filled Eagle Ford. Total depth is about 14,500 ft. Fracture stimulation is expected as early as possible in November, once the gas pipeline is in place. No flow result yet.

drilling result

Chairman Richard Elliott and director William Hassell retire. Four directors join: Matt Gentry (COO), Greg Shoemaker (Chief Scientist), Vicky McAppion (also Company Secretary) and Mark Clohessy (non-executive). James Cruickshank now signs as Chairman and CEO.

director officer appointment

Antares raised its Yellow Rose interest from 50% to 75% across the whole 18,274 acres, with SIDC keeping 25%. An 8-inch pipeline of about 5 miles, able to carry over 60,000 Mcf/d, will be built 50:50.

farm in farm out agreement

Drilling began at the Frances Dilworth No. 2H (75% interest): a whipstock is set in the 7 inch casing and the window is being milled before the horizontal leg starts. This is the Eagle Ford phase following the disappointing Edwards test.

drilling spud

The share purchase plan closed 9 September more than 100% oversubscribed, and the board accepted all valid applications. 16,890,000 new shares were issued, which is more than the 8m shares/$2.0m originally targeted, resolving the open SPP thread.

capital raising announcement

Antares lifted its working interest from 50% to 75% in the first Eagle Ford horizontal well and in the 1,280 acres around the Frances Dilworth No. 2 wellbore. It holds 50% in 16,020 other acres. A roughly 4,000 ft horizontal well is being planned.

farm in farm out agreement

Edwards gas flow fell below Antares's own 2 Mmcf/d commercial hurdle, so it will drill a horizontal Eagle Ford leg from the Frances Dilworth No. 2 well. This sidelines the earlier Edwards resource hope. SIDC will take its 50% of the new 5,387 acres.

well test result

Antares completed a $10.0m placement of 40m shares at 25 cents, scaled back from a planned 27m shares ($6.75m) on strong demand. It also offers shareholders a share purchase plan at 25 cents, capped at $2.0m, to buy more Eagle Ford acreage.

capital raising announcement

June quarter: Antares reports the Yellow Rose discovery, a $10m raise of 40m shares at 25 cents, and a Petrohawk term assignment amendment to 8,558 acres. On 4 Aug it agreed to buy at least 50% of another 5,387 acres at Yellow Rose, with SIDC talks on up to 100% ongoing.

quarterly activities report

Petrohawk began drilling the Donnell 457 No. 1H Eagle Ford well, on the 4,840 acres where Antares gets a working interest back-in after payout. This confirms the Petrohawk well expected in 2H 2009 has started. Antares says it is evaluating more Eagle Ford acreage.

drilling spud

Antares agreed to buy a 50% interest in 3,336 more net acres at Yellow Rose, taking its Eagle Ford position to over 11,900 acres at 50%. With the Petrohawk back-in acreage, it totals over 16,700 acres. Antares claims 650+ Bcfe potential.

asset acquisition disposition

Frances Dilworth No. 2 is a gas discovery. Logs confirm 140 ft net Edwards limestone gas pay and 146 ft net Eagle Ford gas shale, well above the pre-drill 50 ft and 75 ft. This resolves the Yellow Rose drilling question; Antares puts Edwards resource potential at 40-80 Bcf.

drilling result

Drilling began on Frances Dilworth No. 2, the first Yellow Rose well (Antares 75%), with a preliminary depth of 12,500 ft. Management says a 40+ Bcf Edwards result would be company-making; the Eagle Ford shale will also be evaluated. Weekly updates follow.

drilling spud

Antares sold a term assignment over about 4,840 net acres near Yellow Rose to Petrohawk for an undisclosed sum, keeping a working interest back-in after payout. Petrohawk must spud a first Eagle Ford test well within one year; Antares expects it in the second half of 2009.

asset acquisition disposition

Antares agreed with SIDC to drill the Yellow Rose Edwards limestone prospect, paying 100% of dry hole costs (under US$1.1m) and 75% of completion to earn 75% working interest, up from 50%. This resolves the farm-out question; drilling is due this quarter, with pre-drill expectations of 40+ Bcf.

farm in farm out agreement

Stewart-1 sidetrack is a dry hole: about 22 ft of net gas sand needed fracturing, and the well was deepened to 12,750 ft without further shows, then plugged and abandoned. Antares (49.28%) says no more capital goes to West Wharton for now; Outlar-1 should repay all capital deployed there.

drilling result

The Stewart-1 sidetrack began drilling on 15 February 2009 and is at 8,600 ft, targeting 11,700 ft. Antares holds 49.28%. It targets the channel sand missed by the original well, about 900 ft north.

drilling spud

Antares will place 24 million shares with US investor HEP Oil at $0.10 to raise $2.4m, a 43% premium to the prior close, mainly to fund Yellow Rose. HEP will hold about 13% afterwards.

capital raising announcement

Independent estimate at 30 June 2008 by LaRoche: proved oil reserves up over 85% and proved gas up over 225% since the end of 2007. 2P future net cash flow is about USD44.4m (PV10 USD26.9m). Driven by Harrison-2 and high prices.

resource reserve update

Stewart-1 reached 11,922 ft but the targeted Cook Mountain turbidite channel sand was poorly developed, and good sands may have been missed by several hundred feet. The Jackson sand will be tested; a sidetrack is under evaluation. A setback after the Outlar-1 success (26.25%).

drilling result

AGM chairman's address calls the year difficult, citing lack of success at Little Bear and New Taiton, cost cuts and 'straightened circumstances'. Sales revenue now exceeds ongoing non-capital spending. Yellow Rose farm-out is being re-evaluated; Shaffer Ranch farm-down sought. Director Campbell is departing.

other

Executive Director James Cruickshank will become Managing Director and CEO from 1 July 2008, as Howard McLaughlin's contract expires 30 June and he had said he would not renew. Cruickshank's terms stay the same.

director officer appointment

Harrison-2 (75%) was perforated over five feet and put on sales, producing about 400 bbl/d oil and 550 Mcf/d gas on a small choke. It follows the earlier lost hole and sidetrack. Stewart-1 hit an unexpected 10 ft shallow gas sand; target depth 11,900 ft.

production update

2007 annual report: the Board calls it a terrible year with a collapsed share price. LaRoche reserves: 1P 0.49 Bcf gas and 22,339 bbl oil; 2P 3.43 Bcf and 44,259 bbl. The board shrinks from five to three, MD McLaughlin will not renew, and costs are cut.

annual report

The operator recommended temporarily suspending Freeborn-1 to evaluate the data and seek a farminee for a second well, and Antares agreed. At Harrison-2, Orion reset the cement plug and drilled the sidetrack back down to 8,191 ft, with 13,000 ft the target.

drilling result

Antares declined to fund the operator's recommended frac of Freeborn-1's second and third sands, and will seek a farminee for a second Rowena well. Outlar-1 is above 3 MMcf/d (over USD250,000 a month); Stewart-1 is planned for April; Yellow Rose acreage is now about 8,300 acres.

joint venture update

Stim-gun perforation of Freeborn-1's second 41 ft sand brought no pressure or gas flow increase, read as very low permeability. Antares believes fracture stimulation would be ineffective. The well's hopes are now in doubt.

drilling result

The first Freeborn-1 test, a 15 ft interval near 14,700 ft, flowed gas and load water at an unstable rate. The company blames likely near-wellbore damage and plans fracture stimulation. It calls the unstimulated flow encouraging, but there is no proven rate yet.

well test result

Sale of the Anadarko basin (South Goodwin) assets to Exoma Energy settled for USD4.35m, with USD3.9m received on top of the USD450,000 deposit. Effective date is 1 December 2007. It completes the July agreement and brings cash in.

asset acquisition disposition

Outlar-1 (West Wharton) began production at 2.4 MMcf/d of gas and 158 bbl/d of condensate, with no water, ending the wait for the pipeline. Antares' interest fell from 30% to 26.25% at first sales. Follow-up wells are planned.

production update

Antares secured an A$20m equity line with Cornell Capital (YA Global) over 36 months. It can draw up to A$300,000 per 10 trading days at a 2% discount to the lowest daily VWAP, with a 3% commission. It is optional funding, not cash raised.

capital raising announcement

IPR has withdrawn its offer to sell its Kenedy Ranch Group A interest, ending the deal announced 10 October that would have lifted Antares from 5% to 60%. Antares stays at 5% in Group A and 50% in Group B and is weighing options, including drilling Group B.

asset acquisition disposition

Freeborn-1 reached 16,030 ft. Logs show potential gas sands across four intervals between 14,180 and 14,760 ft with good reservoir quality. A liner will be run to test about 75 ft of net sand. Also, a Harrison-2 appraisal well at Oyster Creek (75%) is planned before year end.

drilling result

Outlar-1 flowed about 1.7 MMcf/d of gas and 120 bbl/d of condensate with no water on a restricted choke, at over 7,000 psi. The company believes a higher rate is sustainable. Well is shut in pending a pipeline. Confirms a West Wharton discovery (30%).

flow test result

Antares agreed to buy IPR's (formerly Santos USA's) interest in Kenedy Ranch Group A, lifting its stake there from 5% to 60%, and will become operator. This enables testing of the gas sands found in KMF 228-1, with another well planned for early 2008. Price not stated.

asset acquisition disposition

Jean H. Freeborn-1 spudded 20 September on the Rowena Wilcox prospect, targeting 16,000 ft with potential over 200 BCF. Antares holds 50% with minimum dry cost about USD2.85m. Turnkey contract fixed at USD4.9m. The CEO calls it transformational if it succeeds.

drilling spud

Half-year to 30 June 2007: net loss $11.4m including $9.1m of write-offs and impairment on failed wells and Oklahoma assets. Oklahoma assets are to be sold to Exoma for USD4.35m. $11.2m of new convertible notes were issued.

half year report

Outlar-1 reached 11,911 ft. Preliminary logs suggest the primary sand is hydrocarbon bearing, with two deeper sands possibly productive and very good reservoir quality. Production casing is being run ahead of testing. Early encouraging sign for the West Wharton project (30%).

drilling result

San Isidro signed a fixed-cost turnkey contract with Orion to drill Jean H. Freeborn-1, the first well on the large Rowena Wilcox prospect (over 200 BCF P50). Antares holds 50%, with minimum cost about USD2.75m dry. It may farm down to 40%.

contract award

Outlar-1, the first West Wharton well, spudded 12 August and is drilling at 1,536 ft toward 11,500 ft. Antares holds 30% (26.25% after first sales). Minimum cost has risen to about USD1.3m dry or USD1.6m completed, under a fixed-cost contract.

drilling spud

Zwernemann-1 on Shaeffer Ranch found only sub-commercial gas and will be plugged and abandoned, costing Antares about USD350,000 net. Oyster Creek pipeline is complete and production has started, ending the long wait. Garcitas tests were below expectations.

drilling result

The Ilse-1 pressure build-up test was not encouraging, so the Middle Wilcox zone probably has limited commercial potential. The well is shut in while Upper Wilcox options are reviewed. This weakens the earlier hopes for the New Taiton prospect, where Antares holds 25%.

well test result

Garcitas C-2 flowed 2.2-2.5 MMcf/d and 100-120 bbl/d condensate from a 13 ft Middle Wilcox interval with no water. Zwernemann-1 reached 6,100 ft with indicated oil and gas pay. Oyster Creek first gas sales have slipped from May to early July.

flow test result

Antares takes a 30% interest in the new West Wharton project in Wharton County, Texas, to drill a 12,000 ft Cook Mountain prospect with potential of 40-80 BCF. Minimum commitment is about USD0.9m dry hole and USD1.15m completed; interest falls to 26.25% at first sales.

farm in farm out agreement

Antares takes a 50% interest in the new Gemini project in Wharton County, Texas, with operator Lighthouse Exploration. The first 8,000 ft well, Castor, targets 5-15 BCF potential. Minimum commitment is about USD 0.85m; interest falls to 45% at first sales.

farm in farm out agreement

Scott-2 flowed gas at 2 MMcf/d with condensate from a 6 ft zone and is deemed a commercial producer (Antares 67.5%). Three more zones remain to test after the pipeline, expected May 2007. Extends the Oyster Creek success after Harrison-1.

flow test result

Ilse-1 stopped at about 17,000 ft, short of the planned 17,300 ft, because of over-pressure and safety concerns. Preliminary logs show 10-50 ft of possible hydrocarbon sands in the Lower Wilcox plus Upper Wilcox zones. Testing is yet to be decided.

drilling result

Harrison-1 testing is complete; dual completion expected at 4-6 MMcf/d and 100-300 bbl/d condensate, with about six weeks to connect a pipeline. Garcitas C-1 shows possible reservoir damage needing stimulation. Lonesome Dove-1 will be plugged and abandoned after the shallow oil re-completion failed.

drilling result

Six months to 31 Dec 2006: net loss $2.9m, neutral operating cashflow, $13m exploration spend, including a $1.6m unrealised currency loss. Management calls Harrison-1 and Garcitas C-1 discoveries and says Scott-2 is believed to be one. Santos is exiting the US, leaving KMF 228-1 options under review.

half year report

Harrison-1's lower Anomalina A zone flowed about 2.5 MMcf/d plus roughly 120 bbl/d condensate on a small choke; upper zone flowed over 2 MMcf/d. Garcitas C-2 started drilling 6 March and is at 5,023 ft.

flow test result

Garcitas Ranch C-1 reached 13,030 ft; Middle Wilcox gas sands met pre-drill expectations. Casing will be run ahead of testing. The operator declared a 'tight hole', so further details are limited. Management says more wells will be needed.

drilling result

Scott-2 (Antares 67.5%) spudded 25 January in an adjacent fault block to Harrison-1, with surface casing set at 2,582 ft. Minimum cost is about USD 1.85m dry. Oyster Creek potential is quoted at 4-20 BCF.

drilling spud

Garcitas Ranch C-1 (Antares 23.5%) hit strong gas shows at 10,700 ft in a secondary Upper Wilcox target. Logs show 120+ ft of good net sand, and gas samples were confirmed. The primary objective is still about 1,500 ft deeper.

drilling result

After a trading suspension, Antares reports Lonesome Dove-1 missed its reservoir sands at 10,500 ft, with only shale gas shows; a sidetrack may follow. Harrison-1 reached 12,805 ft with gas sands, will be completed for testing, and follow-up Scott-2 (67.5%) is committed.

drilling result

Garcitas Ranch C-1 (Antares 23.5%) spudded 16 December to 13,000 ft in 30-40 days, following the 25 October deal. It is 80 ft up-dip of a 1987 well that flowed 10 MMcf/d. Potential 45-75 BCF; minimum cost about USD 1.3m under a fixed turnkey drilling cost.

drilling spud

Lonesome Dove-1 spudded 4 December at Shaeffer Ranch (Antares 50%), planned to 9,500 ft in about 21 days. The prospect is rated at 30-50 BCF, 3-5 BCF per successful well. Exposure is USD 750,000 dry or USD 940,000 completed. First well on the 3D seismic.

drilling spud

Ilse-1, the first well on New Taiton (Antares 25%), spudded 1 December to a planned 17,300 ft, about 60 days if trouble-free. Mean potential is 40 BCF. Dry-hole exposure about USD 1.2m, plus USD 0.4m if completed. This ends the long wait for a spud.

drilling spud

Antares takes a 23.5% interest in Garcitas Ranch C-1, a 13,000 ft Wilcox gas well in Victoria County, Texas, operated by Hollimon Oil. Potential is 45-75 BCF; minimum commitment is about USD 1.3m. Spud is expected within two months.

farm in farm out agreement

Harrison-1, the first Oyster Creek well (Antares 75%), spudded 26 September 2006 after months of rig delays. It tests the lower Frio with 4-20 BCF project potential; minimum commitment is about USD 2.2m.

drilling spud

Profit after tax for the year to 30 June 2006 was $5.5m, driven by the Turkish subsidiary sale. Exploration write-offs and impairment totalled $12.98m after early Ellis wells declined faster than expected. US exploration spend was $12.6m.

annual report

Antares takes 50% of Yellow Rose, a 61 square mile 3D seismic survey in South Texas, operated by San Isidro, its Shaeffer Ranch partner. Acquisition is tentatively planned for about March 2007; cost to first well is about USD 2.2m net.

joint venture update

Kelln 94-1 spudded 23 July (Antares 19%). Antares farmed out 50% of Section 9, Ellis County, to Mewbourne, which funds 62.5% of the well; Antares keeps 46.3% and a 3% override. Ellis-2 was re-completed to the Des Moines. Harrison-1 slips to August.

farm in farm out agreement

KMF 228-1 was suspended for possible re-entry. Evaluation shows four potential gas-bearing reservoir units, but results were not conclusive enough for all partners to fund further casing. Not a declared discovery or dry hole; the outcome stays open.

drilling result

Antares signs a participation agreement with Slawson Exploration to take a 75% interest in the Oyster Creek prospect in Brazoria County, Texas, testing a 13,000 ft lower Frio well. Potential is 4-12 Bcf; minimum commitment about USD 2.2m; spud planned July 2006.

farm in farm out agreement

The KMF 228-1 well in Kenedy County, Texas, spudded 3 April 2006 and should take about 80 days to reach 18,200 feet. Antares holds 5%; Santos USA operates. The unrisked potential is 225 Bcf, but the company calls it high risk.

drilling spud

Kelln Trust #5-1 in Ellis County, Oklahoma, (Antares 34%, operated by Mewbourne) is producing gas and condensate from the Atoka formation at 1.0 MMcf/d and 84 barrels of condensate a day, and is now generating revenue. This follows an earlier disappointing deeper zone.

well test result

Ellis-4 in Oklahoma (Antares 79.46%) flowed gas at about 1.7 MMcf/d on test, stabilising at about 0.9 MMcf/d, and is being tied into the sales line. Ellis-3 is to be abandoned; the company says faulting explains the mixed results across the Ellis wells.

well test result

Antares signs a 50/50 deal with San Isidro to fund an 85 square mile 3D seismic survey in South Texas (Shaeffer Ranch). Antares' cost to the point of choosing leases is about USD 2.2m. It secures lease options over about 43,000 acres until January 2008.

joint venture update

Adelphi Energy, announcing under a letter of intent, will take a 25% interest in the New Taiton gas prospect in Texas, with Antares also taking 25%. Mean potential is 40 BCF; drilling is expected in the first half of 2006. This is Adelphi's announcement, not Antares'.

farm in farm out agreement