2 Jan 2014director officer appointment● Neutral
Non-executive director Neil Fearis retired from the board on 31 December 2013 after more than 14 years, having joined in 1999. He remains a significant shareholder.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
24 Dec 2013farm in farm out agreement▲ GoodMajor
Apache will fund Carnarvon's share of Phoenix South-1 and contingent Roc costs up to a raised cap of US$70m per well (from US$50m). Apache gets an option, by 3 July 2014, over 40% of WA-436-P and WA-438-P, cutting Carnarvon to 30%. Carnarvon says it is now fully funded.
20 Dec 2013capital raising announcement▼ BadMajor
The entitlement offer was heavily undersubscribed: applications for 48.5m shares raised A$3.1m, against 187.6m shares offered. That left 139.0m shares unsubscribed, well short of the roughly A$12m target.
12 Dec 2013investor presentation● Neutral
Broker presentation: Phoenix South-1 spud now expected late January/early February 2014, with Roc late 2014 if successful. Plans 10-17 Thai wells in 2014 funded from operating cash flow. Repeats the entitlement offer terms.
9 Dec 2013drilling progress report▲ Good
WBEXT-2BST2 reached its casing point at 1,206 m MD after entering the top five metres of the primary igneous V2 target, with strong oil shows and gas readings. It will now drill through the reservoir to about 1,400 m. No flow test yet.
3 Dec 2013capital raising announcement● Neutral
Administrative notice that the entitlement offer prospectus was dispatched on 3 December. The offer is open and closes 17 December. No new substance.
21 Nov 2013investor presentation● Neutral
MD interview explaining the raising: the board saw a reasonable possibility Phoenix South-1 costs could exceed the US$50m carry, given Apache's proposal to drill deeper than 4,500 m and cyclone risk. Rig window is mid December to mid January.
20 Nov 2013capital raising announcement● NeutralMajor
Prospectus for the 1-for-5 non-renounceable entitlement offer at A$0.064 per share, with a free A$0.10 option per share expiring 29 December 2015, to raise up to about A$12m. Offer closes 17 December. Not underwritten.
20 Nov 2013capital raising announcement● NeutralMajor
Carnarvon launches a 1-for-5 entitlement offer at A$0.064 with a free A$0.10 option, to raise up to about A$12m. Funds are to cover possible Phoenix South-1 costs beyond the US$50m free-carry, such as deeper drilling or cyclone delays. Non-participants are diluted.
15 Nov 2013investor presentation● Neutral
AGM presentation slides covering strategy, the Phoenix blocks and Thai operations, plus proxy vote tallies. Resolution 4 drew about 46m votes against versus 117m for. Phoenix South-1 described as spudding imminently. Nothing materially new.
15 Nov 2013agm notice● Neutral
Chairman's AGM address: a challenging year, focus on rebuilding Thai production with operator Towngas, and Phoenix South-1 about to spud. Says exposure to some exploration projects was reduced and new opportunities are being assessed. Executive bonuses not granted, director fees frozen.
15 Nov 2013drilling spud▲ Good
Rig is on site in Thailand and the WBEXT-2BST2 sidetrack is due to spud within days, targeting the 50 m igneous V2 reservoir to about 1,400 m. This restarts drilling after WBEXT-2C, which has produced over 15,500 bbls. 3-7 further wells follow.
13 Nov 2013investor presentation● Neutral
MD interview ahead of the AGM: October output about 540 bopd net, steady. Plans 4-8 more Thai wells from late Nov/early Dec, funded from cash and JV cash flow. Phoenix South-1 spud now mid December to mid January. Market cap about A$65m.
16 Oct 2013annual report● Neutral
Full 2013 annual report, repeating the earlier preliminary results: revenue A$18.3m, pre-tax profit A$1.5m, loss after tax A$8.4m. Chairman notes no executive bonuses and frozen director fees. Nothing new beyond the August release.
16 Oct 2013quarterly activities report▲ Good
September quarter: 48,299 bbls net produced, a 9% rise on the June quarter, with net sales A$4.9m and operating cash flow A$2.7m before tax. Cash is A$20m, no debt. Water injection began. Phoenix South-1 spud best estimate is now December 2013.
4 Oct 2013investor presentation● Neutral
Singapore conference presentation. It now says Phoenix South-1 should spud late Q4 2013, tentatively December, and a contingent second Roc well could follow in early 2015. Farm-in opportunities are being prepared for other permits, starting with Bandy in WA-436-P.
30 Aug 2013investor presentation● Neutral
Results presentation repeating the full-year figures: 200,147 bbls produced at A$91.50, revenue A$18.3m, pre-tax profit A$1.5m. Production averaged 1,370 bopd gross; first Phoenix South well still due between November 2013 and January 2014. No new facts.
30 Aug 2013annual report▼ Bad
Year to June 2013: revenue A$18.3m (down from A$30.4m), pre-tax profit A$1.5m but net loss A$8.4m, which the chairman mainly attributes to deferred tax from exchange rate adjustments. NTA 3.0c per share; no dividend. Chairman says Thailand development is slower than expected.
26 Aug 2013investor presentation● Neutral
MD interview on the reserve report: reserves are broadly in line with last year despite 570,000 bbls produced, with more sandstone offsetting weaker igneous. He says 2012 drilling had good sandstone results but mixed igneous results, and the consultant changed with the new operator.
26 Aug 2013resource reserve update● NeutralMajor
Chapman's assessment at 31 Dec 2012 gives Carnarvon net 1.5 MMbbl developed, 2.4 MMbbl proved undeveloped, 8.3 MMbbl probable and 21.3 MMbbl possible. Company says overall levels are similar to the prior year's Gaffney Cline assessment. Development needs drilling and approvals.
26 Aug 2013resource reserve update● Neutral
Independent consultant Chapman assessed Thailand reserves at 31 December 2012. Net to Carnarvon: 1.5 million barrels developed producing, 2.4 million proved undeveloped, 8.3 million probable undeveloped and 21.3 million possible undeveloped.
12 Aug 2013well test result● Neutral
WBEXT-2C is flowing about 330 bopd of oil with 700 bwpd of water (gross) from the deeper igneous. Field output is about 1,600 bopd gross (640 net), still below the 3,000 bopd target. Shallower zones are yet to be tested.
29 July 2013drilling result● Neutral
WBEXT-2C reached 1,235 m MD. The shallower WBV1 igneous showed oil across about 20 m; the deeper WBV2 showed gas but no oil. It will now be completed and tested over some weeks. No flow rate yet.
26 July 2013quarterly activities report● Neutral
June quarter: 44,035 bbls net produced, down on the prior quarter due to wells shut in for workovers and natural decline. Net sales A$4.1m, cash about A$21m, no debt. PTT renewed the oil sales contract; Phoenix South still due between November 2013 and January 2014.
17 July 2013drilling spud● Neutral
The operator spudded the WBEXT-2C appraisal well on 16 July in L44/43 (Carnarvon 40%), targeting two fractured igneous zones to about 1,280 m. It is the first drilling since the early-2013 rig stand-down, expected to take about 12 days.
24 June 2013investor presentation● Neutral
Update says Thailand output is steady at about 1,300 bopd gross, below the 1,700 exit rate of December. Water injection is expected in July; Phoenix South is due to spud November 2013 to January 2014, free-carried. Cash is about A$20m, no debt.
17 Apr 2013quarterly activities report● Neutral
March quarter: cash rose to A$21.1m, no debt, with 51,498 bbls net produced and A$4.9m net sales revenue. Phoenix South drilling by Apache is planned for late 2013; the Thai 3D seismic is nearly processed and sandstone water injection is still being arranged.
25 Mar 2013joint venture update● Neutral
Carnarvon and operator Towngas agreed to jointly finish the WBEXT 1B water-flood, with equipment installation about eight weeks after subsurface work. Six ALRO wells (about 200 bopd) remain shut in. Carnarvon plans to drill the Tha Chana prospect (80 million barrels mean) in early 2014 for about $3m and is seeking a farm-out partner.
6 Mar 2013investor presentation● Neutral
Technical presentation on L52/50 and L53/50 in Thailand's Khian Sa Basin, now 100% Carnarvon since December 2012. Pitches a low-cost onshore work program to access prospects of up to 100 million barrels recoverable, by analogy with nearby Chumphon Basin fields.
5 Mar 2013admin correction● Neutral
Carnarvon lodged forms cancelling employee plan shares forfeited by former employees. Administrative only; no figures given in the text.