Past year: ▲ 0%(38.0c – 60.0c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
23 May 2014agm notice● Neutral
AGM update: the confidential strategic review proceeds with Petro Capital and Euroz as advisors, with Guggenheim collaborating; any transaction is expected to need shareholder approval. Capex is limited to maintenance and surplus cash goes to payables. Chairman Fry stays until the review ends, rather than retiring at the AGM.
7 May 2014material agreement● Neutral
Petro Capital Securities, a Dallas investment bank, is engaged as exclusive US advisor for the strategic review announced 8 April. It will help run a process that would see assets monetised or developed; the Australian advisor is still being finalised.
1 May 2014quarterly activities report● Neutral
March quarter receipts were US$13.4m (up 4.7%), net production about 2,286 boe/d, and 57 operated wells. The ~7,400-acre sale closed for ~US$11m. Cash fell to ~US$15m from ~US$35m, mostly paying down payables; June quarter outflows estimated at US$4.2m.
10 Apr 2014farm in farm out agreement▲ Good
Farm-out of up to 160 acres in Noble County, Oklahoma to Blue Quail, which must spud a vertical Cleveland Sandstone test well by 21 May 2014 at its own cost. Red Fork then holds 15% of the well and keeps horizontal rights, with no cost to it.
8 Apr 2014other▼ BadMajor
Board says reserve and production growth has not been reflected in the share price, and extra capital cannot reasonably come from conventional debt or equity. Spending will be limited to cash flow and asset sales, and a strategic review will consider asset, joint venture or whole-company transactions.
1 Apr 2014annual report▲ Good
Annual report for the six-month transition period to 31 December 2013 (reporting calendar changed to align with US peers). Revenue was US$26.0m, EBITDA US$10.1m, and net operating loss US$0.7m, against a US$21.0m loss in FY2013. Production was 573.8 mboe.
1 Apr 2014asset acquisition disposition● NeutralMajor
Sold about 7,400 acres of undeveloped Big River acreage, with seismic rights, for roughly US$11m cash. The land lies outside the held-by-production schedule, so the 18.6 mmboe 1P reserves are unaffected. Proceeds will strengthen the balance sheet, described as a first step in the revised 2014 plan.
20 Mar 2014production update● Neutral
February gross production averaged 4,124 boe/d (up 5.6%), net about 2,390. Two wells were spudded and two completed; 79 gross wells (57 operated). The 2014 development review continues, with results due in early April and investor briefings in Australia and Asia.
21 Feb 2014resource reserve update▲ GoodMajor
Year-end 2013 independent reserves rose: 1P to 18.6 mmboe (up 130% on the year) with NPV10 of US$277m, and 3P to 33.5 mmboe (US$491m). The board is also reviewing the 2014 Big River programme to avoid more debt or equity, which would mean slower drilling.
18 Feb 2014production update● Neutral
January gross production averaged 3,904 boe/d, net about 2,276 (stable). Three wells were spudded and three completed, giving 74 gross wells (55 operated). The first extended lateral, Freshwater 1-11H, peaked at 187 boe/d, a modest rate.
31 Jan 2014quarterly activities report▲ Good
December quarter receipts were US$12.8m (up 28%), gross production 335.4 mboe (up 41%), and cash about US$35m. Eight wells were spudded, reaching 53 operated wells. A US$4.5m Noble County acreage acquisition (2,812 net acres) closed. Board renewal continued with Colwell joining and Miller retiring.
17 Jan 2014production update▲ Good
December gross production averaged 3,812 boe/d (up 2.5%), net about 2,270. The company met its year-end target of 53 operated wells and hit a peak net rate of about 2,670 boe/d. The Freshwater extended lateral began flowback, with about 66% of load recovered.
14 Jan 2014production update● Neutral
Two December winter storms briefly interrupted Oklahoma output, with minimal infrastructure damage. Big River production availability averaged about 92% in December, yet the company still expects a modest December production increase and record quarter-on-quarter growth.
23 Dec 2013director officer appointment● Neutral
David Colwell, a retired PwC partner of 34 years, joins as independent non-executive director from 1 January 2014 and will chair the audit committee. He is the first of two planned appointments; Bruce Miller retires 31 December 2013, as previously announced.
17 Dec 2013investor presentation● Neutral
Company interview by the managing director recapping history and strategy. It repeats the 38-well 2013 programme (over US$130m capital), a 2013 net exit rate of 2,600–2,700 boe/d expected once wells are tied in, and up to 45 wells in 2014. Market cap quoted at about $170m.
17 Dec 2013production update▲ Good
November gross production averaged 3,720 boe/d (up 9.2%), net after royalties about 2,170. Woodford Shale laterals are being used; Jekyll & Hyde 1-14H has averaged over 200 boe/d for four months. Up to 45 operated wells are planned in 2014, with only 28 required.
29 Nov 2013agm notice● Neutral
AGM address from the CEO, who acknowledges a difficult year for shareholders. It restates the US$150m Guggenheim facility and a plan to hold 49% of operated acreage by production by year-end, with 28 wells needed in 2014 to reach about 73%.
14 Nov 2013production update▲ Good
October gross production averaged 3,408 boe/d (up 10.5%), net after royalties about 2,021 boe/d. Four wells were spudded, including the first extended lateral, which hit target depth of 14,323 ft in 21 days. The company now has 66 gross wells, 49 operated.
8 Nov 2013director officer appointment● NeutralMajor
Board renewal: two more independent non-executive directors are to be appointed. Bruce Miller will step down from the board by end 2013 but stay in management. Chairman Michael Fry intends to retire at the AGM before end of May 2014, with a replacement chairman to be chosen.
7 Nov 2013debt financing● NeutralMajor
Closed a US$150m senior secured term loan with Guggenheim Partners, replacing the US$45m F&M Bank facility; US$100m was advanced at closing. Interest is LIBOR (2% floor) plus 8.5%, maturing 25 December 2017, a far higher rate than the 3.25% F&M facility announced in March.
1 Nov 2013quarterly activities report▲ Good
September quarter sales were US$10.02m (up 43.4%) and gross production 238.4 mboe (up 35%). A record 13 wells were spudded; 60 gross wells (46 operated) now exist. The company says it is ahead of its plan to reach 53 wells by end 2013.
31 Oct 2013annual report▲ Good
Full 2013 annual report for the year to 30 June, restating the results already announced on 30 September. The chairman cites 47 gross wells (36 operated) against 9 a year earlier, new directors Warnock and Edwards, and the revolving credit facility funding expansion.
17 Oct 2013production update▲ Good
September gross production averaged 3,085 boe/d, up 25% on August; net about 2,270 boe/d, or about 1,800 after royalties. The first well with the newly contracted top drive rig set a 15-day spud-to-spud record; it is now drilling the company's first extended (~10,000 ft) lateral.
30 Sept 2013annual report▲ GoodMajor
FY2013 (to 30 June) revenue rose 194% to US$18.2m, with gross profit US$11.3m. Group 1P reserves up 73% to 14 mmboe; pro-forma cash A$/US$ stated as $51.5m after the July raise of $47.7m. Credit facility lifted post year-end to US$100m limit, US$45m drawable.
23 Sept 2013production update▲ Good
August gross production averaged 2,467 boe/d (~1,870 net), with current output ~3,100 boe/d. Fifty-six gross wells (42 operated) are in progress. A larger completion design on Jekyll & Hyde shows encouraging early results.
18 Sept 2013resource reserve update▲ GoodMajor
Reserves at 30 June 2013 rise sharply: net 1P to 14.0 mmboe (from 8.1) and 3P to 28.3 mmboe (from 18.0). 1P NPV is US$196.3m, up 120%. This should support a larger borrowing base, following the July US$100m facility expansion.
26 Aug 2013admin correction● Neutral
Red Fork changes its financial year end from 30 June to 31 December to align with its US subsidiaries and peers. A six-month transitional year runs to 31 December 2013, with its annual report due by 31 March 2014.
19 Aug 2013production update▲ Good
July gross production averaged 2,441 boe/d (up 10%; ~1,850 net), peaking at 3,014 boe/d. Fifty-two gross wells (39 operated) are at various stages with three rigs running. Continues the monthly growth trend.
15 Aug 2013other▲ GoodMajor
Red Fork says the Woodford shale beneath its Mississippian acreage could add over 650 gross unrisked drilling locations, covering over 90% of the acreage. It is already committed to seven non-operated Woodford wells at ~12% average interest. This is a company assessment, not a drilled result.
31 July 2013quarterly activities report▲ Good
June quarter receipts were a record US$6.985m (up 72.5%) and gross production 174.8 Mboe (1,942 boe/d, up 33.4%). Proved reserves PV10 is US$144m. Non-operated inventory has grown to 24 wells at ~15% average interest, 13 of them Devon-operated.
