6 Feb 2012drilling progress report● Neutral
The Jerry Scott #2 rig was rigging up on 5 February to resume drilling the Abunda #1-21H lateral from about 4,367 feet. Continues the lateral delay flagged in December; no new result.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
30 Jan 2012drilling result▲ Good
McMurtry #1-21H reached 9,833 feet on 25 January, with about 4,437 feet of lateral showing extensive oil and gas, and gas readings above 3,500 units. Logging and liner cementing follow, then frac. Shows only, no flow rates yet.
27 Jan 2012drilling scheduled▲ Good
Red Fork began a 3D seismic and permitting program over 25 more sections, bringing seismic-cleared sections to 45. It will set up two new development pods (NW Noble, East Payne) for four in total, supporting up to 45 horizontal producers.
23 Jan 2012asset acquisition disposition▲ GoodMajor
Red Fork added 13,000 net acres through a federal BLM lease sale, lifting Mississippian holdings to about 73,000 net acres. Leases have a 10-year term and 87.5% net revenue interest, adjacent to its Noble County area.
20 Jan 2012well test result● NeutralMajor
Tahara #1-28H recorded a 30-day peak rate of 304 boe per day (80% oil) while still cleaning up, with about 2,000 feet of fluid above the pump. Company says it is on track for a net 1-to-1 payout in about 8 months and EUR in line with the play average.
11 Jan 2012drilling progress report▲ Good
McMurtry #1-21H was drilling the lateral at 5,410 feet on 11 January after 7-inch casing was cemented at 5,400 feet. Mud logs showed a good oil show in the upper Mississippi Lime; target is about 10,000 feet.
23 Dec 2011drilling spud● NeutralMajor
Red Fork-operated McMurtry #1-21H spudded 21 December in Noble County, targeting 9,500 feet total depth with about 4,200 feet of lateral. Red Fork holds 65.6%, SandRidge 29.8%, Antinum 4.5%, Chesapeake 0.1%. First well of the Noble County program.
22 Dec 2011well test result▲ Good
Tahara #1-28H has recorded over 300 boe per day in the last two weeks while still cleaning up, with about 2,200 feet of fluid above the pump. Rates are not yet stable; a 30-day peak rate will be released once they are.
20 Dec 2011contract award▲ Good
Red Fork secured a 12-month Jerry Scott Drilling top-drive rig contract for continuous 2012 Mississippian drilling. McMurtry 1-21H expected to spud this week, McMurtry 1-22H in about 30 days, Blair 1-24H after; Abunda lateral cleanout continues.
14 Dec 2011asset acquisition disposition▲ Good
Mississippian holdings rose to about 60,000 net acres (from over 55,000), with interests in 302 sections across five counties, 105 of them controlled. All 100% working interest with net revenue interest of 81.25% or better.
9 Dec 2011capital raising announcement▲ GoodMajor
Placement of 40.46 million shares at A$0.69 raises A$27.9m before costs, within the 15% placement capacity, to fund operated drilling, leasing and non-operated wells. Priced well above the A$0.32 raise in March 2011; Euroz led.
What it means for a shareholder
40.5m new shares at A$0.690 to raise about A$27.9m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (1,449 at the issue price), your slice goes from 0.000537% to 0.000467% of the company. To keep it you'd need 217 more shares - about A$150 at the issue price.
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5 Dec 2011well test result▲ GoodMajor
Tahara #1-28H produced 283 barrels of oil equivalent in 24 hours to 4 December (240 bbl oil, 260 Mcf gas) with only about 20% of load water recovered, and the rate is still rising. First flow rate after the frac; the 30-day peak is still to come.
2 Dec 2011farm in farm out agreement▲ Good
Red Fork will take a 12.5% working interest in a non-operated horizontal Mississippian well in Noble County with Crow Creek Energy as operator, spud expected in the March quarter 2012. Its first participation in another group's well in the play.
1 Dec 2011security holder rights change● Neutral
Company cancelled 9,600,000 unlisted options (exercise prices A$0.40 to A$1.00, expiries 2012 to 2016), with an updated Appendix 3B. Likely linked to the board's incentive plan review (inference); the text gives no reason.
30 Nov 2011drilling scheduled● Neutral
Update across the Mississippian play: Abunda #1-21H awaits the Jerry Scott #2 rig to resume its lateral. In Noble County, 3D seismic cleared three locations (McMurtry 1-21H, 1-22H, Blair 1-24H), with KAL Drilling rig #3 about to spud the first.
30 Nov 2011well test result▲ Good
Tahara #1-28H has pumped for about 72 hours, recovering 6,000 of roughly 70,000 barrels of load water, with increasing shows of oil and rich gas. Company says this matches offset wells; no flow rate yet. This is an early positive sign, not a result.
30 Nov 2011investor presentation● Neutral
AGM presentation largely repeats known FY11 facts: revenue A$3.08m, Mississippian acreage over 55,000 net acres, and reserves held stable (Lee Keeling, excluding Mississippian). Nothing new announced; the text provided is partly garbled and truncated.
14 Nov 2011drilling progress report● Neutral
Tahara #1-28H was fracture stimulated in 12 stages across about 4,200 feet of lateral without operational issues. Plugs are being drilled out, then production testing starts. Flow rates are still unknown.
1 Nov 2011drilling progress report● Neutral
On 31 October the lower section of Tahara #1-28H's first stage was perforated, ahead of the 12-stage frac. Halliburton is on site making final preparations. No flow results yet.
31 Oct 2011annual report● Neutral
Red Fork published its 2011 annual report for the year ended 30 June 2011. The chairman noted depressed US gas prices and a plan to maintain East Oklahoma output, with Big River the growth focus, and a Mississippian reserves update was expected after the 2011 horizontal drilling program.
27 Oct 2011drilling progress report● Neutral
A work-over rig moved onto Abunda #1-21H on 26 October to condition the hole for completing the lateral, with Halliburton on site. No results reported.
18 Oct 2011drilling progress report● Neutral
Completion work has begun on Tahara #1-28H: frac tanks and flow lines are in place and the design is final. The frac will use 12 stages, about 1.2 million gallons of water and 1.1 million pounds of sand. No flow results yet.
17 Oct 2011drilling progress report● Neutral
Abunda #1-21H reached 4,871 feet with different drilling conditions and more pronounced fracturing than Tahara. A second rig will finish its lateral, while the Jerry Scott rig moves off so Tahara can be fracked ahead of schedule and then starts in Noble County.
4 Oct 2011drilling progress report● Neutral
Abunda #1-21H was drilling the lateral at 4,385 feet on 3 October, with 7-inch casing cemented at 4,228 feet. Target remains about 8,400 feet with roughly 4,200 feet of lateral. No results yet.
3 Oct 2011drilling result▲ GoodMajor
Schlumberger logs on Tahara #1-28H give original oil in place of 58.4 million barrels per square mile, with about 835 feet of oil-filled fractures. Company expects recoverable reserves per section could be up to three times industry average (its expectation, not tested). Flow rates still await the frac.
30 Sept 2011annual report● Neutral
Full-year to 30 June 2011: revenue A$3.08m (up 2.3%), loss before tax, depreciation and amortisation A$2.6m, cash A$24.9m, no bank debt. Net assets rose to A$73m from A$46m after A$38.6m net capital raised; exploration spend A$15.4m, mostly Big River leasing.
22 Sept 2011drilling spud● Neutral
Abunda #1-21H, the second Big River horizontal, spudded 21 September from the same pad as Tahara. It targets about 3,100 feet vertical plus 4,200 feet of lateral northward, to about 8,400 feet total depth.
21 Sept 2011resource reserve update● NeutralMajor
Reserves at 30 June 2011 (Lee Keeling): 2P 17.1 mmboe (2.3 Mmbo, 88.7 Bcf), NPV10 US$119.7m, versus 17.8 mmboe a year earlier. Described as stable despite lower gas prices. Mississippian acreage is excluded; an update is expected after the 2011 drilling.
19 Sept 2011drilling progress report● Neutral
Production liner on Tahara #1-28H was cemented by 16 September, and open-hole logs are being processed to design the completion. The rig is being skidded to the Abunda #1-21H location, the second of the five wells, which will spud shortly.
14 Sept 2011drilling result▲ GoodMajor
Tahara #1-28H reached 8,139 feet on 12 September, with about 4,200 feet of lateral in the Mississippi and good oil and gas shows along its length, and no operational problems. It is a first horizontal drilled result only; flow rates await completion and fracture stimulation.