1 May 2006capital raising announcement● NeutralMajor
The company will call 10 cents on each of 18,803,493 partly paid shares to raise $1.88 million for further Gunnedah Basin methane exploration. Payment is due by 2 June 2006.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
28 Apr 2006quarterly activities report▲ Good
March 2006 quarterly: Longlea #1 and Georges Island #2A and #3 were drilled, with good gas quality. Georges Island #2 was lost and redrilled. Drill-stem tests on all four wells await equipment.
27 Apr 2006drilling result▲ GoodMajor
The Georges Island #2A redrill reached 353m with casing correctly set across both seams. The original GI#2 hole was plugged, which completes the drilling program. Drill-stem tests on all four wells await equipment.
19 Apr 2006drilling progress report● Neutral
Georges Island #3 was completed after under-reaming, with the Hoskissons Seam looking very gassy. Further attempts at Georges Island #2 snapped the drill string, so a redrill (GI#2A) starts and the original hole is to be plugged.
7 Apr 2006drilling progress report▲ Good
Georges Island #3 hit the Breeza and Hoskissons seams on target with good methane kicks. It was drilling to about 380m, with completion expected the following week.
5 Apr 2006director officer appointment● Neutral
Mr Bun Kiem Lee was appointed alternate director for Steven Danielson, effective immediately.
3 Apr 2006drilling progress report● Neutral
Tools remain stuck in Georges Island #2, so the hole was temporarily abandoned. The rig moved to the final well of the program, Georges Island #3, with drilling due to start at 200mm to about 360m.
29 Mar 2006resource reserve update▲ GoodMajor
Longlea #1 gas from the Breeza (98% methane) and Hoskissons (80% methane) seams is high quality with no detectable CO2. The company suggests the Benelabri area could hold 500-750 BCF gas-in-place, an unproven estimate based on older coal data.
28 Mar 2006annual report● Neutral
2005 annual report: consolidated loss of $149,846, against a 2004 profit of $613,638 that came from the Magnum Gold sale. The Georges Island #1 workover is called a success, but follow-up drilling was delayed by rig shortages.
27 Mar 2006drilling result▼ BadMajor
Georges Island #2 hit its targets, but the casing string parted during cementing and drill tools became stuck. The company says a complete redrill now appears necessary, a setback to the trial field.
20 Mar 2006drilling progress report▲ Good
Georges Island #2 intersected the Breeza and Hoskissons target seams on depth. It continues to a planned 361m total depth before logging and casing.
17 Mar 2006drilling spud▲ Good
Georges Island #2 was spudded on 14 March in PEL 1, about 350m from the Georges Island #1 discovery. It is the first of two follow-up wells forming a trial field, targeting the Breeza and Hoskissons seams.
14 Mar 2006drilling progress report● Neutral
Longlea #1 was completed and temporarily capped. The Breeza and Hoskissons seams were under-reamed ready for testing, and the rig moved to Georges Island.
7 Mar 2006drilling progress report▲ Good
Wireline logs at Longlea #1 show eight coal seams, over 38m in total. Three seams (over 13m combined) were chosen for gas testing, which is deferred until Georges Island #2 and #3 are drilled.
6 Mar 2006drilling result▲ Good
Longlea #1 reached total depth of 560m. The Hoskissons Seam was hit at about 488-496m, roughly 100m deeper than expected but thicker (about 8m), with sporadic flammable gas recorded while drilling.
2 Mar 2006drilling progress report● Neutral
Longlea #1 was at 360m, with target seams expected about 60m deeper than predicted. The company says this does not affect prospectivity.
27 Feb 2006drilling spud▲ GoodMajor
Drilling began on Longlea #1 in PEL 12 (spudded 24 February) after a wait of more than six months for a rig. Target is the Hoskissons Seam at about 450m; the rig then moves to follow up the Georges Island #1 discovery.
30 Jan 2006quarterly activities report● Neutral
December 2005 quarterly: drilling of trial seam gas wells in Gunnedah Basin PELs 1 and 12 still blocked by rig shortages, with a rig promised for end of January 2006. Exploration spend was $31,350 and cash at quarter end was $751,447.