29 Sept 2008annual report● Neutral
Annual report for the year to 30 June 2008. Perry Gilstrap was appointed executive director on 17 July 2008. The extract does not include the financial figures.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
22 Sept 2008drilling spud● Neutral
Rosier #1-27 was spudded 20 September at West Tulsa to about 3,800 ft, the third production well there. With it, the company will have three production wells and one disposal well ready, and is working on infrastructure to bring them on.
17 Sept 2008investor presentation● Neutral
Presentation repeats known facts: 2P reserves about 42 Bcfe, about 1 MMcfe/day production, 91.5m shares, cash A$6.4m at 30 June, no debt. Market cap is shown as A$10m today and A$53.5m fully diluted (figures as presented).
9 Sept 2008drilling result▲ Good
Fuss #2-33 reached 4,014 ft and found Red Fork Sand, extending proven productive area at West Tulsa to 320 acres of an 800-acre trend. Over 20 wells could be supported. Three oil wells are expected selling by end October.
4 Sept 2008resource reserve update▲ GoodMajor
Independent certification at 30 June 2008 lifts 2P reserves 13% to 41.3 Bcfe and total reserves 38% to 85.7 Bcfe. 2P is valued at A$80m (PV10). East Oklahoma carries no 2P and is outside these figures, so the 2P reserve upgrade is from Osage and West Tulsa.
26 Aug 2008drilling progress report● Neutral
Updated schedule shows eleven wells at various stages across Osage, West Tulsa and East Oklahoma, plus four more East Oklahoma wells contracted. All are expected to be selling by early December quarter, the first time all three projects generate revenue. This is later than earlier targets for Osage and East Oklahoma.
21 Aug 2008drilling spud● Neutral
Fuss #2-33 was spudded 16 August at West Tulsa to about 4,000 ft, to serve as a water disposal well for the Fuss #1-33 and #1-34 wells. Another development well, Fuss #1-27, is planned.
19 Aug 2008drilling result▲ Good
Dorsey #2-5, the second East Oklahoma production well, also hit about 50 ft of Woodford Shale. Wells now expected to cost about US$120,000 each, below budget, and pay out in under six months if they reach 100 Mcf/day (company assumption). Sales now expected in the December quarter, later than the earlier five-week target.
12 Aug 2008drilling result▲ Good
Chidester #1-3, the first East Oklahoma production well, hit about 50 ft of Woodford Shale at the predicted depth, with a strong gas show and good porosity. About ten wells are now planned in the initial program, with spot sales targeted within five weeks.
8 Aug 2008farm in farm out agreement▲ GoodMajor
Joint venture with a Dallas-based group to lease a 200,000-acre unconventional gas area in Oklahoma, with up to US$30m available. Red Fork gets about a 20% carried interest, is carried on the first ten wells, is reimbursed about US$800,000 and operates. About 18,000 acres leased so far.
5 Aug 2008drilling result▲ GoodMajor
The first East Oklahoma well, RDFK #1-3, confirmed the Woodford Shale at 480 ft, about 50 ft thick, with a gas show and good porosity. Company says the project could host over 200 Bcf (analogue-based estimate, not certified). Five wells planned.
31 July 2008drilling result▲ Good
Redfork #3-29A, the second Dawson Coal test at Osage, reached 430 ft and also showed strong gas. Casing is cemented on both wells ready for production tests. Continues the shallow coal program started days earlier; no rates yet.
29 July 2008drilling result▲ Good
Redfork #5-29A, the first shallow Dawson Coal test at Osage, reached 521 ft and gave a strong gas show on an open-hole test. The rig moves to #3-29A. No flow rates yet; this opens a new, shallow gas target alongside the deeper oil wells.
24 July 2008drilling spud▲ GoodMajor
RDFK #1-3 was spudded 23 July, the first well at East Oklahoma, and will also serve as a water disposal well. Five wells are planned in the initial campaign, with first gas sales expected in the September 2008 quarter.
24 June 2008drilling result▲ GoodMajor
Redfork #1-20 reached 2,205 ft with five zones showing potential hydrocarbons, including about 10 ft of Wilcox pay, and a Mississippi Limestone find. Completions are planned. Production from the four new oil wells is expected in the September quarter.
16 June 2008drilling spud● Neutral
Redfork #1-20 was spudded 14 June at Osage to about 2,300 ft, a step-out from the #1-17 oil well. This is the last of the deeper Osage wells that had been delayed since January.
10 June 2008asset acquisition disposition▲ GoodMajor
East Oklahoma holdings rise to about 50,000 acres, lifting total Oklahoma holdings to about 70,000 acres, from 45,000 earlier. Sales infrastructure there is due by end July, and about six wells are due to start before end June. Partnership talks are under way.
4 June 2008investor presentation▲ Good
Company says development is on time and on budget, with nine of about 20 planned FY2008 wells drilled and up to 40 planned for FY2009. East Oklahoma drilling is due this month. It expects significant production and cash flow in the first half of FY2009.
21 May 2008drilling result▲ GoodMajor
Fuss #1-33, the second West Tulsa well, reached 3,450 ft with about 45 ft gross pay in three zones. A production test result is expected in about 30 days, and a third well is committed. Company says the program is on time and budget.
14 May 2008drilling result▲ GoodMajor
Redfork #1-18 reached about 2,275 ft with 10-12 ft of potentially productive Simpson Sands showing free oil and good fluorescence. Completion and production testing will follow as soon as possible. No flow rates yet.
13 May 2008drilling spud● Neutral
Fuss #1-33 was spudded 10 May at West Tulsa to about 3,500 ft, as the second well of the program. Two rigs are now running, at West Tulsa and Osage. A schedule shows #3-29, #5-29 and #2-32 still in testing.
9 May 2008drilling spud● Neutral
Redfork #1-18 was spudded 6 May at Osage to about 2,300 ft, a step-out from the #1-17 oil well. Rig then moves to #1-20. This continues the deeper Osage wells that had slipped from January.
8 May 2008drilling result▲ GoodMajor
The first West Tulsa well (Fuss #1-34) reached 3,434 ft with about 30 ft of potential pay in the Red Fork Sand. A production test result is expected in about 30 days. If it succeeds, six to eight further locations open up.
30 Apr 2008drilling spud▲ GoodMajor
Fuss #1-34 was spudded on 28 April, the first well of the 2008 West Tulsa program, to about 3,500 ft. A second rig is secured for Osage #1-18 and #1-20, and 10-12 further wells are committed for the first half of 2008.
24 Apr 2008well test result▲ Good
The first well from the nine-well Osage completion program is in production, flowing about 50 Mcf/day initially and expected to peak near 100 Mcf/day. The company expects all four new wells (#4-28, #3-29, #5-29, #2-32) tied-in by end April.
15 Apr 2008material agreement▲ GoodMajor
Terms agreed with a regional gas transmission company for a tap linking Osage to a transmission line so gas can be sold at spot, expected by end of September quarter. Red Fork will not exercise its option to buy the gathering system, saving about US$350,000.
14 Apr 2008admin correction● Neutral
ANZ says its Opes Prime holdings are unchanged as at 11 April 2008 and corrects the issued share count for Citadel Resources. Not specific to Red Fork.
11 Apr 2008other● Neutral
ANZ's Opes Prime update to 10 April 2008 shows its Red Fork interest falling to 5,724,929 shares (6.553%) from 12,868,068, consistent with the placement of the stake announced on 4 April.
11 Apr 2008other▲ Good
Red Fork confirms the roughly 12.9m shares (about 14.1%) held for Opes Prime were placed with existing substantial holders and institutions, with the last trade settled 10 April. It says the overhang is removed. Confirms the 4 April announcement.
10 Apr 2008other● Neutral
ANZ's Opes Prime update to 9 April 2008. Red Fork is shown at 12,868,068 shares (14.729% of 87.4m), unchanged from the prior day. The figure may include shares sold but not yet settled.