Past year: ▲ 1131%(11.5c – 2.07 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
14 Oct 2013regulatory community update▲ Good
South Africa's Mineral Resources Minister announced Cabinet approval of technical petroleum regulations, including fracking rules, with a 30-day comment period. Challenger calls it a milestone toward awarding its Karoo exploration right, which is still pending. It is a step toward a decision, not an award.
27 Sept 2013annual report● Neutral
Annual report for the year to 30 June 2013. The visible text covers only the directors' report and corporate directory: Michael Fry chairs, Robert Willes is Managing Director, and the auditor is HLB Mann Judd. Financial figures are truncated and not visible.
17 Sept 2013price query● Neutral
ASX queried a rise from a 9.9c close to an intra-day 13.5c. The company knew of no undisclosed information, pointing only to South African press comments on government support for Karoo exploration rights, and confirmed Listing Rule 3.1 compliance. No new news; a repeat of the July query.
12 Sept 2013other● Neutral
Administrative notice of 666,667 shares issued on 12 Sept 2013 under Robert Willes's service agreement. This is the first instalment of the 4m-share equity package announced at his appointment.
7 Aug 2013capital raising announcement● Neutral
Administrative notice for the 6c placement: 16,666,667 shares will be issued, 14,666,667 on 9 Aug and 2,000,000 on 21 Aug 2013. No new information beyond the placement already announced.
7 Aug 2013capital raising announcement▲ GoodMajor
Challenger raised A$1.0m via a placement of 16,666,667 shares at 6c to existing sophisticated shareholders. This follows cash falling to A$282k at 30 June. The company says it supports the South African permit process.
29 July 2013investor presentation● Neutral
July 2013 presentation pitches Cranemere (~800,000 acres) as the main catalyst, with the permit award still awaited. It lists 311.5m shares, 25m unlisted options, A$0.28m cash at 30 June and a ~A$21.8m market cap at 7c. Largely repeats known facts.
25 July 2013price query● Neutral
ASX queried a rise from 5.6c to an intra-day 7c. The company knew of no undisclosed information, citing only third-party press suggesting positive South African government sentiment, and confirmed Listing Rule 3.1 compliance. No new news.
4 Apr 2013director officer appointment● NeutralMajor
Robert Willes, ex-BP and former Eureka Energy CEO, becomes Managing Director from 8 April 2013, replacing Paul Bilston, who stays as non-executive director. Mike Much resigns from the board. Willes is offered A$375k salary plus 4m shares and a 16m-share incentive plan, subject to shareholder approval.
14 Mar 2013half year report● Neutral
Half-year report to 31 Dec 2012. The text shown covers operations only: Cranemere application pending, Mercury Stetson well plugged, Maricopa sold for US$625k net to Challenger's 50%. Financial figures are truncated and not visible.
5 Feb 2013asset acquisition disposition● Neutral
Operator Solimar confirmed the Maricopa sale has formally closed at US$1.25m total, US$625k for the 50% share, effective 31 Jan 2013. This is the partner's release confirming the closing Challenger reported in its quarterly report.
19 Dec 2012asset acquisition disposition● Neutral
Operator Solimar announced the agreed sale of the 120-acre Maricopa property for US$1.25m, with US$625k going to its 50% share. Closing is expected 31 Jan 2013. This is the partner's release of the sale Challenger announced the same day.
19 Dec 2012asset acquisition disposition▲ GoodMajor
Challenger agreed to sell its 50% of the 120-acre Maricopa property; total price US$1.25m, so US$625,000 to Challenger before costs, with closing expected 31 Jan 2013. Proceeds are to fund the South African application and farm-out. Chevron joining Falcon in the Karoo is also noted.
23 Nov 2012listing compliance notice▼ BadMajor
ASX queried cash of only A$155,000 at 30 September against A$379,000 quarterly operating outflow. Company says it will rely on a Cranemere farm-out, Maricopa sale, and possible equity or debt raising, and believes it has sufficient cash. Funding remains dependent on these unfinished deals.
3 Oct 2012price query● Neutral
ASX queried the rise from 5c (5 Sept) to an intra-day 10.5c. The company said it knew of no undisclosed information and no other explanation, and confirmed Listing Rule 3.1 compliance. No new news.
21 Sept 2012annual report● Neutral
Annual financial report for the year to 30 June 2012. The provided text covers directors, corporate details and the start of the operating review (Mercury Stetson farm-in); financial figures are truncated and not visible.
10 Sept 2012regulatory community update▲ GoodMajor
South Africa's Cabinet approved the shale gas task force report and lifted the moratorium on Karoo exploration applications in place since May 2011. Challenger's 90%-owned Bundu application (~800,000 acres after game reserves) can now progress; the MD hopes to conclude farm-in talks.
4 June 2012well test result▼ BadMajor
Barnett production testing is finished. Gas rates fell as the well loaded with frac water, and the engineer does not expect improvement without artificial lift. Operations have ceased and the well will be suspended. This reverses the earlier positive rates; company blames geological complexity.
30 May 2012well test result▲ GoodMajor
The Mercury Stetson Barnett frac (17 May) has produced gas, building from ~405 mcf/d to ~630 mcf/d over 36 hours while still slugging water. Company calls it the first Barnett gas in the area. Unlike the failed Woodford test, but rates are unstable.
17 May 2012drilling progress report▼ BadMajor
Barnett frac at Mercury Stetson to start within 24 hours across 11,085–11,425 ft. The company attributes the weak Woodford result to a possible nearby shear fault. It will let the core Triple Crown lease expire mid-June to focus on Mercury Stetson and South Africa.
15 May 2012security holder rights change● Neutral
Option expiry notice: listed CELO options (20c exercise) must be exercised by 5pm AEST on 30 June 2012 or lapse. Shares closed at 3.8c, well below the 20c exercise price.
2 May 2012well test result▼ BadMajor
The Woodford test produced enough gas to light a flare, but the flow was not sustained as water influx killed the well. The company says the frac was not effective in contacting the reservoir broadly. Well shut in; Barnett frac planned late May.
30 Apr 2012drilling progress report● Neutral
Woodford flowback continues, with about 55% of pumped fluid recovered and signs of gas seen; tubing with gas lift valves was installed. Gas production testing will begin once liquid rates fall. Still no gas flow rate.
23 Apr 2012drilling progress report● Neutral
The Woodford frac at Mercury Stetson was completed with 180,000 lb of sand and ~500,000 gallons of fluid. Flowback has begun, with about 15% of the fluid recovered. No gas rate yet; 2–4 weeks of testing expected.
19 Apr 2012drilling progress report● Neutral
Fracture stimulation on the Woodford shale at Mercury Stetson is starting: zone perforated, cement integrity confirmed, frac pumps on site. Flow testing of 2–4 weeks follows, as previously advised.
2 Apr 2012drilling progress report▲ Good
Mercury Stetson well is cased and cemented with 7in casing. A Baker Hughes frac slot is booked for the week of 23 April, starting with a single-stage Woodford frac and 2–4 weeks of flow testing, then the Barnett. Initial Flex logs are encouraging.
27 Mar 2012investor presentation● Neutral
Transcript of an FNN interview with MD Paul Bilston repeating known points: Mercury Stetson drilling, 800,000-acre Karoo application awaiting South African decision, and funding through frac and testing after the recent raising. No new announcement.
26 Mar 2012director officer appointment● Neutral
Director David Prentice, a founding director who helped the 2007 IPO, has resigned. The company says this was foreshadowed at the last AGM as part of the shift to US-based operations under Mike Much.
26 Mar 2012drilling result▲ Good
Mercury Stetson sidetrack reached final depth of 11,947 ft after drilling ~150 ft of Woodford, slightly less than the 185 ft expected because of high torque. Logs show porosity of 9–15% and gas shows to 670 units. Casing then frac in 4–6 weeks.
21 Mar 2012investor presentation● Neutral
Presentation on Mercury Stetson and Cranemere repeating known data and recent log results. It shows 289.5m shares, a 7.5c price and A$21.7m market cap, and states Cranemere fraccing moratorium runs until March 2012. No new announcement.
