20 Oct 2010admin correction● Neutral
Correction to the annual report: Prospect Custodian's holding is 12,887,089 shares (9.24%), not 8,821,563 (6.32%). Administrative only.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
11 Oct 2010other● Neutral
Red Fork plans to drill, complete and test about 20 wells over the next twelve months in East Oklahoma to grow reserves, agreed with its certifying engineers. It says this is funded from cash flow and working capital, and cites the current gas price environment.
1 Oct 2010annual report▲ Good
Year to 30 June 2010: revenue up 189% to A$3.01m, gross profit A$1.24m, net assets A$46.3m, no debt. Reserves as certified in September. Management expects higher reserves, production and cash flow ahead.
27 Sept 2010production update▲ Good
Moebius #1-28 began producing 47 bopd and 50,000 cf/d of gas; Moebius #3-28 is still returning load water. The second delivery point is operational, with water disposal tested at 10,000 bbl/d. West Tulsa now has eight of ten wells producing and 36 further locations identified.
14 Sept 2010resource reserve update▲ GoodMajor
Independent certification lifts reserves at 30 June 2010: 2P to 143.1 Bcfe (from 72.8), 3P to 197.6 Bcfe (from 106.5), 1P to 79.9 Bcfe. First East Oklahoma 2P of 78.4 Bcf, largely from the 2009 EOK South acquisition. Resolves the overdue reserve report.
14 Sept 2010investor presentation● Neutral
Presentation of the 2010 independent reserve certification at 30 June 2010: 2P 143.1 Bcfe, 3P 197.6 Bcfe, with East Oklahoma 2P 78.4 Bcf. Share price A$0.52 and cash about A$7.85m. Repeats the same-day reserve announcement.
16 Aug 2010joint venture update▲ Good
Moebius #2-28 at West Tulsa is completed as a water disposal well, possibly able to take up to 15,000 barrels of water a day. A second central delivery point is being finalised, to bring Moebius #1-28 and #3-28 online.
11 Aug 2010production update▲ Good
A new amine processing unit at the Wagoner A plant in East OK South was commissioned, which the company says saves about A$425,000 a year in costs plus about A$300,000 a year of gas otherwise burned as fuel. Processing capacity is 5 MMcf/d.
29 July 2010investor presentation● Neutral
Singapore investor presentation restating East Oklahoma shale gas themes, 2009 reserves (2P 72.8 Bcfe) and per-well economics. Notes 139.0m shares, share price A$0.67, market cap about A$93m, cash about A$7.5m at 30 June 2010 and no debt. No new results.
28 July 2010admin correction● Neutral
Correction: Fuss #2-34's initial gas rate was 120,000 cubic feet per day, not 120 cubic feet. Oil rate stays at 40 bopd.
28 July 2010well test result▲ Good
Fuss #2-34 at West Tulsa's Pawnee prospect began producing 40 bopd and 120 cf/d of gas (later corrected), from about 3,500 ft. This is the sixth producing well there. The company says the low rate is deliberate, to improve ultimate recovery.
20 July 2010drilling result▲ Good
Two more East Oklahoma Central wells, Clemmons #1-9 and Peper #1-21, reached 465 ft and 553 ft, logging 55 ft and 56 ft of Woodford Shale with good gas shows. Both are cased, awaiting completion.
12 July 2010drilling result● Neutral
Scott #1-24, the first well Red Fork has drilled itself at East Oklahoma South, reached 1,371 ft on a 640-acre spacing unit. Logging is under way and completion is to follow. Dates were later corrected.
12 July 2010admin correction● Neutral
Correction to the earlier Scott #1-24 release: the well spudded 8 July and reached 1,371 ft on 9 July 2010, not June. No other change.
9 July 2010drilling progress report▲ Good
East Oklahoma Central now has 12 wells, with two more to be drilled and completion and testing under way. Equipment is ordered for the Mayes A facility, designed for about 4 MMcf/d. First gas sales follow commissioning, still not yet dated.
6 July 2010drilling progress report● Neutral
Completion has begun on Posey #1-17 in East Oklahoma North, with about 63 ft of productive Woodford Shale logged and fracture stimulation under way. Test results are expected in the September quarter, so the flow results remain pending.
30 June 2010admin correction● Neutral
Administrative notice: the share registry moves to Security Transfer Registrars Pty Ltd, Applecross WA, effective 1 July 2010. No effect on the business.
8 June 2010drilling result▲ Good
Moebius #3-28 reached 3,577 ft with about 75 ft of Red Fork Sand logged, which the company says confirms the field's continuity. Five West Tulsa wells still produce; three more drilled wells await production testing once new infrastructure is commissioned.
28 May 2010investor presentation● Neutral
Investor presentation pitching East Oklahoma as a large shale gas discovery with potential for multi-TCF reserves. Per-well figures: 0.31 Bcf reserves, US$0.10m cost, US$0.53m NPV (company estimates), ~150 sections held. Largely restates known themes.
27 May 2010drilling spud● Neutral
Moebius #3-28 spudded 25 May at West Tulsa, a direct offset to Moebius #2-28, targeting the Red Fork Sand at about 3,400 ft. It is the 8th production well at Pawnee, supported by a new central delivery point under construction.
21 May 2010drilling result▲ GoodMajor
Moebius #2-28 at West Tulsa reached 5,604 ft and logged three new sand sections totalling 120 ft with strong gas shows, on top of about 80 ft of Red Fork Sand. It will likely become a water disposal well; next well due week of 24 May.
18 May 2010regulatory community update▲ Good
Red Fork says refined drilling methods cut East Oklahoma single-well drill, complete and tie-in cost by 33% to about US$100,000, saving US$50,000 per well. It now estimates finding and development costs below US$0.50 per Mcf.
14 May 2010other● Neutral
Top 20 shareholder list at 14 May 2010: the top 20 hold 63.69% of 139.5m shares. Robert Healy now holds 17.40% and Luigi Ghirardello 13.00%. Administrative, no new events.
12 May 2010drilling result▲ GoodMajor
Moebius #2-28 at West Tulsa hit about 40 ft of oil pay in the Red Fork Sand, a step-out 2,700 ft from the nearest well. The company says this extends the discovery and starts phase two; the well is still drilling toward 6,000 ft.
4 May 2010drilling result▲ Good
All four East Oklahoma Central wells reached target depth and hit the Woodford Shale at the predicted depth, about 50 ft thick with gas visible throughout. They are cased and awaiting completion; on 640-acre spacing, they will hold acreage once producing.
4 May 2010investor presentation● Neutral
Launch of a new website and an updated April 2010 investor presentation. It repeats known figures, including 138.0m shares, nil debt, about A$13.5m cash at 31 Dec 2009 and reserves as at 30 June 2009. Share price quoted A$0.76.
30 Apr 2010drilling spud● Neutral
Two more East Oklahoma Central wells, West #1-28 and West #1-29, were spudded on 27-28 April to about 600 ft to test the Woodford Shale thickness and productive capacity. Continues the current drilling phase; no results yet.
27 Apr 2010drilling spud● Neutral
Two East Oklahoma Central wells (Steins #1-17, Holland #1-17) were spudded to about 600 ft to test the Woodford Shale. At West Tulsa, Mobius #2-28 began a new development pod, targeting about 5,500 ft as an Arbuckle test.
13 Apr 2010drilling spud▲ Good
A rig moved onto East Oklahoma Central on 12 April, starting a phase of up to 14 new production wells. The first three are to be drilled to 400-700 ft this week; this resumes drilling that was slated for December, with first gas sales still pending.
29 Mar 2010production update▲ GoodMajor
East Oklahoma South plant optimisation is substantially complete, with about 40 km of new pipeline letting 20 new wells tie in, taking wells in production to 49. Output is about 1 MMcf/d now; the company says the increase will show in September 2010 quarter revenue.