21 Dec 2009drilling spud● Neutral
Mobius #1-28 spudded 17 December at West Tulsa, a 40-acre offset to Fuss #3-33, targeting about 4,000 feet. It is the seventh well drilled at the 100%-owned project and would bring production wells to six.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
18 Dec 2009drilling result● Neutral
Posey #1-17 reached 635 ft, logging about 27 ft of Woodford Shale with gas shows, the thinnest of the three northern wells. Rig moves to East Oklahoma Central the week of 21 December; completion and flow testing expected early January.
14 Dec 2009drilling spud● Neutral
Posey 1-17 spudded 12 December as the third of about ten wells in the East Oklahoma North campaign, targeting roughly 550 feet to test the shallow shale. No results yet.
10 Dec 2009well test result▲ GoodMajor
Testing of a Simpson Sands zone in Rosier #2-27 at West Tulsa's Pawnee prospect gave good shows of 1200-1300 BTU gas with some oil, below the Red Fork sand. Testing continues; the company expects commercial production, but no rates are given. Red Fork sand completions follow.
2 Dec 2009drilling result▲ Good
Wattenbarger #1-22 at East Oklahoma North reached 485 ft with about 52 ft of Woodford Shale and gas shows throughout, similar to the first well. Rig is in short maintenance before drilling resumes.
30 Nov 2009investor presentation● Neutral
AGM presentation dated 30 November; the text is mostly unreadable due to garbled encoding. Legible fragments suggest it repeats known facts (2P 72.8 Bcfe, 130,000 acres, ~138m shares, about A$15m cash, no debt). Nothing new is confirmed.
30 Nov 2009drilling result▲ Good
Steinhoff #1-2, first East Oklahoma North well, reached 713 ft and logged about 65 ft of Woodford Shale with gas shows throughout. Confirms the target shale in the northern JV area; no flow rates or reserves yet.
26 Nov 2009drilling spud● Neutral
Wattenbarger 1-22 spudded 25 November as the second of about ten wells in the East Oklahoma North campaign, targeting roughly 400 feet. No results yet.
24 Nov 2009drilling spud● NeutralMajor
First of ten initial wells spudded at East Oklahoma North, the northern JV where Red Fork holds 20-25%. Company expects about 100 wells in various stages across East Oklahoma by year end. East Oklahoma South is producing about 1.125 MMcf/d; first East Oklahoma Central sales slip to Q1 2010.
6 Nov 2009director officer appointment▲ GoodMajor
Steve Miller, president of Tulsa-based private company Orion Exploration, joins the board as a non-executive director. Red Fork also gets access to Orion's technical team, with an option for both to co-invest in new projects, supporting its planned scale-up.
30 Oct 2009annual report▲ Good
Annual report for the year to 30 June 2009 (a second release after the 1 Oct extract). The chairman's letter says about A$8m was raised, market cap grew over 150% to about A$140m, 2P reserves rose to 72.8 Bcfe and the company has no debt.
30 Oct 2009quarterly activities report▲ Good
September quarter: gross production A$604,000 and net income A$509,000, up from A$220k in the June quarter; net revenue up 133%. Recaps the 2P 72.8 Bcfe reserve upgrade, East Oklahoma step-outs, West Tulsa tests and the A$24m raising at $1.20.
29 Oct 2009admin correction● Neutral
Re-issue of the same-day acquisition closing release, adding a claim that the deal fast-tracks East Oklahoma development by at least two years. The deal terms (63,000 acres, 100% working interest, 80+ wells) are unchanged.
29 Oct 2009asset acquisition disposition▲ GoodMajor
Closed the East Oklahoma South purchase announced 13 October: 100% working interest in about 63,000 acres with 80+ wells and 25 miles of pipeline. Lifts East Oklahoma holdings to 110,000 acres and total output to about 3 MMcfe/d, roughly US$5m a year gross at current spot prices.
26 Oct 2009drilling scheduled● Neutral
Two rigs are being deployed in East Oklahoma, one on the company's own acreage and one on the northern JV. Ten wells in the initial program are now targeted by end of the December 2009 quarter, and the gas pipeline by the same date.
22 Oct 2009material agreement▲ GoodMajor
Secured a gas market for West Tulsa's Pawnee prospect, receiving 80% of spot price and liquids proceeds. This ends the long wait for shut-in gas, over 300,000 cf/d, expected to add over US$1m a year. A ~US$15,000 pipeline link is due to finish with first sales before end 2009.
13 Oct 2009asset acquisition disposition▲ GoodMajor
Agreed on 9 October to buy 100% working interest in about 60,000 acres of producing Oklahoma gas assets, with over 80 wells and 25 miles of pipeline. Closing is due 2 November, subject to due diligence. Funded from cash; a US$1.15m deposit is paid and about A$16m cash remains, no debt.
1 Oct 2009annual report● Neutral
Annual financial report for the year to 30 June 2009. The extract provided covers only the directors' details, corporate directory and contents, so no financial figures can be taken from it.
10 Sept 2009drilling result▲ Good
Fuss #3-33 at West Tulsa reached 3,756 ft, with three oil-bearing intervals and Redfork sand thickening to about 90 ft. It is cased and awaiting testing; the company expects higher oil output and still targets 10 West Tulsa wells by year end.
4 Sept 2009admin correction● Neutral
Compliance notice naming Lee Keeling and Associates as the engineers behind the reserve figures, with their written consent. Administrative only, no new figures.
3 Sept 2009investor presentation● Neutral
Notice of an audio broadcast by the Managing Director on the reserve upgrade. No new information beyond the reserve announcement of the same day.
3 Sept 2009resource reserve update▲ GoodMajor
Independent certification at 30 June 2009 lifts group 2P reserves 78% to 72.8 Bcfe and 3P 24% to 106.5 Bcfe (from 2P ~41 and 3P ~86 a year earlier). A maiden East Oklahoma 2P is booked at about 0.3 Bcf per well; West Tulsa reserves doubled.
1 Sept 2009drilling spud● Neutral
Fuss #3-33 spudded 31 August at West Tulsa, targeting about 3,900 ft as a Wilcox test. It is the sixth West Tulsa well, with up to 20 locations identified, funded from cash and production revenue.
27 Aug 2009capital raising announcement▲ GoodMajor
Plans to more than double East Oklahoma acreage via a northern JV with Dallas investors (carried for 25% of 10 wells plus 60,000 acres), and to fast-track West Tulsa to 10 wells by year end. Funded by a A$24m placement of 20m shares at $1.20, subject to shareholder approval around 1 October.
What it means for a shareholder
20.0m new shares at A$1.20 to raise about A$24.0m. That's 15% dilution: every existing holder's slice gets 15% smaller. If you held A$1,000 of shares (833 at the issue price), your slice goes from 0.000713% to 0.000609% of the company. To keep it you'd need 143 more shares - about A$172 at the issue price.
Create a free account to see this worked out for your own holding.
6 Aug 2009drilling result▲ Good
Rosier #2-27 at West Tulsa reached 3,724 ft, with about 70 ft of oil-bearing Red Fork sand (35 ft net pay), better developed than earlier nearby wells. It is cased and awaiting production testing. Note: the July spud report named a Wilcox target.
31 July 2009quarterly activities report▲ Good
June quarter: gross production A$310k, net income A$220k (up from A$180k); net oil revenue up 120%. A$2.97m option proceeds and the A$5m placement received, about A$8m funding, no debt. East Oklahoma drilling ramps up; Osage development under review.
30 July 2009drilling result▲ Good
First two East Oklahoma step-out wells, Couch #1-34 and True #1-33, reached target depth, showed gas and were cased. They sit 1.25 miles north of existing wells. Drilling cost about US$34,000 for both; first gas sales still targeted by end 2009.
20 July 2009drilling spud● Neutral
Rosier #2-27 spudded 18 July at West Tulsa, a second rig, targeting the Wilcox Sand at about 4,000 ft. It is the fifth West Tulsa well, with up to 20 locations identified, funded from cash and production.
16 July 2009drilling scheduled▲ Good
Next East Oklahoma drilling phase starts: Couch #1-34 spuds this week, True #1-33 follows, with continuous activity for five months. Company still targets gas to sales by end 2009 and ten wells testing within four weeks.
6 July 2009well test result▲ Good
A single West Tulsa well tested about 85 bbl/day oil plus 40-60,000 cf/day gas, over double its earlier rate. Oil revenue now about A$4m a year at US$65; up to 20 well locations identified, funded from cash and production.