15 Feb 2012drilling progress report● Neutral
Live Oak No. 2 has set intermediate casing and is drilling at about 5,400 ft. The Cottonwood A No. 1 frac is pushed to the second week of March, with Aloe Vera No. 2 to follow.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
10 Feb 2012drilling result● Neutral
Cottonwood A No. 1 reached TD of 10,320 ft, the second of 24 planned 2012 Southern Star wells. Live Oak No. 2, the third, has started drilling. Fracs remain planned for early March.
2 Feb 2012drilling progress report▲ Good
Aloe Vera No. 2 reached TD of 10,282 ft in under 12 days, the first of 24 planned 2012 Southern Star wells. Windmill No. 1 is producing over 125 boepd with gas rising. Fracs for the new wells are planned for early March.
1 Feb 2012debt financing● Neutral
Antares drew a second US$10m from the US$200m Macquarie facility, after the first on 16 December. It still plans US$50m drawn by end-2012 for the 30-well program, which would hold all of Southern Star by production.
31 Jan 2012quarterly activities report● Neutral
December quarter net oil rose 38% to 48,949 bo and gas 112%, with a 1,400 boepd exit rate and 2,500 boepd targeted for end-2012. Operating cash outflow was A$12.1m. Shares on issue are about 260m. The 30-well program has started.
25 Jan 2012well test result▲ Good
Live Oak No. 1 (48.6%) peaked at 165 bo and 495 mcf a day, about 250 boe per day, after its early December frac. Two rigs are now drilling Cottonwood A No. 1 and Aloe Vera No. 2 at Southern Star.
18 Jan 2012drilling progress report● Neutral
Coyote No. 1 frac is complete and the well goes straight to production. Cottonwood A No. 1 drilling was delayed by snow and mud. A second rig arrives in about a week for Aloe Vera No. 2, an offset to a well with over 200 MBoe expected recovery.
12 Jan 2012production update● Neutral
December net output averaged 1,204 boepd, slightly below November's 1,242. Live Oak No. 1 is making 45 bopd while flowing back, and Coyote No. 1 is still shut in awaiting its frac.
11 Jan 2012drilling progress report▲ Good
Woodward 7 No. 1 (Big Star) completed a nine-stage frac and is being put on production; pays were indicated in several zones including Dean clastics. Coyote No. 1 gets its upper frac this week, and Cottonwood No. 2 is about to spud.
6 Jan 2012other● Neutral
Notice that the quarterly interest on the AZZG convertible notes, $0.0504 per note, will be paid on 31 January 2012. Routine administrative notice.
3 Jan 2012security holder rights change● Neutral
Antares cancelled 2,924,559 shares under its on-market buy-back, lodged with ASIC. Routine continuation of the buy-back.
3 Jan 2012director officer appointment● Neutral
Kelli Roach joins the board as Director, General Counsel and Chief Administrative Officer. She has been outside counsel to Antares since 2003, so this is an internal legal hire to the board.
23 Dec 2011drilling progress report● Neutral
The five-stage upper frac on Simmons 27 No. 2 (Big Star, 90% before payout) is complete and will be commingled with the deeper Mississippian zones. No rates given; no more operations this year.
16 Dec 2011security holder rights change● Neutral
Antares cancelled 75,441 shares under its on-market buy-back, lodged with ASIC. Routine continuation of the buy-back.
16 Dec 2011debt financing● NeutralMajor
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.
13 Dec 2011production update▲ Good
November net output averaged 1,242 boepd, up from 778 in October and 640 in April. This is the first monthly report, with well-by-well detail. Coyote No. 1 and Live Oak No. 1 are still flowing back at zero.
8 Dec 2011drilling progress report● Neutral
Live Oak No. 1 is flowing back after plug drill-out. Simmons 27 No. 2 passed a long-term test of its deep zones and is getting a further five-stage upper frac. No rates given.
1 Dec 2011drilling result▲ Good
Woodward 7 No. 1 (Big Star) reached TD of 10,975 ft, with logs and cores indicating pay in several zones. Frac is planned for early January 2012. Live Oak No. 1 plugs are being drilled out.
29 Nov 2011investor presentation● Neutral
Presentation for Swiss investor conferences repeats known facts: 263.0m shares, US$11.7m cash at 30 September, a US$200m facility, 2P of 27 MMboe and 3P potential of 90-115 MMboe. Nothing new apart from a top-20 holder list.
28 Nov 2011production update▲ GoodMajor
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.
23 Nov 2011drilling progress report● Neutral
Live Oak No. 1 completed its 11-stage frac and plugs are being drilled out. Woodward 7 No. 1 is past 10,800 ft, close to its 11,000 ft target. No production results yet.
16 Nov 2011drilling progress report● Neutral
Coyote No. 1 acid stimulation succeeded and the well is flowing back. Live Oak No. 1 starts its 11-stage frac on 16 November. Woodward 7 No. 1 is past 6,000 ft of its planned 11,000 ft.
9 Nov 2011drilling spud● Neutral
Woodward 7 No. 1 (Big Star, 90% before payout) started drilling, with surface casing cemented and a planned depth of 11,000 ft. Coyote No. 1 is being acid stimulated in the Strawn. The Live Oak No. 1 frac is brought forward from January to the week of 14 November.
3 Nov 2011drilling progress report● Neutral
Coyote No. 1 had a limited two-stage frac on the Mississippian and Atoka zones. Good porosity in the Strawn zone will get a separate acid treatment next week. No production result yet.
31 Oct 2011debt financing▲ GoodMajor
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.
31 Oct 2011quarterly activities report▲ Good
September quarter: revenue rose to A$2.926m from A$373,000, with net production of 52,246 boe. The US$200m Macquarie facility funds 30+ wells. Tank battery delays have curtailed Southern Star wells, but over 1,000 boepd gross is still expected by year-end. Weekly and monthly reporting will begin.
27 Oct 2011drilling progress report● Neutral
Live Oak No. 1 finished drilling at 10,300 ft with hydrocarbon intervals confirmed on logs. Cozart A No. 1R is recovering load water on a 1/8 inch choke. Woodward 7 No. 1 is due to start mid-November. No new production results.
18 Oct 2011drilling progress report● Neutral
Live Oak No. 1 is near its 10,300 ft TD, with frac planned for January. Cozart A No. 1R was fracked and is being cleaned out. Newbrough No. 1 shows encouraging shallow oil, so testing is extended. Woodward 7 No. 1 (Big Star) is due to start in several weeks.
7 Oct 2011drilling spud▲ Good
Windmill No. 1 was fracked in a 12-stage program, the largest yet at Southern Star. Live Oak No. 1 (49% WI) spudded, the eighth well since Antares took control in June 2011. Cozart A No. 1R frac is due next week.
7 Oct 2011other● Neutral
Notice that the quarterly convertible note interest of $0.0504 per note will be paid on 31 October 2011, record date 21 October. Administrative; no new information.