Past year: ▲ 1131%(11.5c – 2.07 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
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.
21 Mar 2012capital raising announcement● Neutral
Notice that 18,461,538 shares at 6.5 cents are to be issued on or about 23 March 2012. This is the A$1.2m placement announced on 20 March.
20 Mar 2012drilling result▲ GoodMajor
Logs show about 600 ft of Barnett shale, roughly 200 ft more than expected, with gas throughout and 8–14% porosity. Woodford top hit at 11,766 ft with gas to 670 units, so the well is being deepened. A further A$1.2m placement at 6.5c was announced.
16 Mar 2012capital raising announcement● Neutral
Notice that 27,000,000 shares at 5 cents are to be issued on or about 19 March 2012. This appears to be Tranche 2 of the February placement (inference; the notice does not say so); it is about 1 million more than the 26m maximum announced.
16 Mar 2012drilling result▲ GoodMajor
Mercury Stetson sidetrack reached 11,750 ft, with strong gas shows (over 550 units in Barnett, ~600 in Woodford). Company says this proves gas is present in the new province; logging, casing then frac expected in 4–6 weeks. Gas shows are not a flow test.
14 Mar 2012half year report● Neutral
Half-year report to 31 Dec 2011 repeats known events: partial Mercury Stetson re-entry and sidetrack plan, Triple Crown Ellenburger test finished, Cranemere approval awaited, Maricopa ~18 bopd. Text is truncated, so financials are not visible.
13 Mar 2012drilling progress report▲ Good
At 11,100 ft, Mercury Stetson hit the Lower Barnett at 10,936 ft with gas shows above 550 units (5.5%). Woodford remains to be drilled, with total depth expected later this week. Early encouraging sign, not yet a test result.
5 Mar 2012drilling progress report▲ Good
Mercury Stetson was at 9,826 ft on 5 March, averaging over 750 ft/day with the PDC bit. Company expects to reach total depth at the base of the Woodford late this week or early next.
27 Feb 2012drilling progress report▲ Good
The Mercury Stetson sidetrack kicked off the cement plug and was at 5,490 ft on 27 Feb, drilling about 20 ft/hr. Company says operations are progressing as planned; a bit change is due later this week.
20 Feb 2012drilling spud● Neutral
Rig 25 is fully mobilised at Mercury Stetson and, as of 20 Feb 2012, has started drilling, kicking off from the cement plug. This begins the sidetrack to about 12,500 ft after the abandoned re-entry.
15 Feb 2012admin correction● Neutral
Administrative notice that 30,000,000 shares were issued on 15 Feb 2012 at 5 cents. This is Tranche 1 of the Feb 2012 placement announced on 7 Feb.
13 Feb 2012drilling progress report● Neutral
Unit Drilling Rig 25 began mobilising to Mercury Stetson and should be rigged up later this week. The sidetrack from ~5,100 ft to about 12,500 ft through the Barnett and Woodford shales follows, then frac and testing. Continues the Jan 2012 rig contract.
7 Feb 2012capital raising announcement▼ BadMajor
Challenger places about A$2.8m at 5c per share, mainly to fund Mercury Stetson drilling and testing. Tranche 1 is 30m shares (A$1.5m); Tranche 2 is up to 26m shares (A$1.3m), subject to a mid-March shareholder vote. The price is well below the 15c April 2011 placement.
31 Jan 2012quarterly activities report● Neutral
December quarter: Mercury Stetson re-entry was partially successful and a sidetrack is planned for February. The Triple Crown hybrid frac (7.4 TCF) is now slated for 2012. Maricopa averaged 18 bopd and Cranemere approval is still awaited.
30 Jan 2012contract award▲ Good
Challenger contracts Unit Drilling Rig 25 for the Mercury Stetson sidetrack, mobilising mid to late February. The plan is a new hole from about 5,100 ft to roughly 12,500 ft, then logging and casing, with frac and testing after.
14 Dec 2011drilling result▼ BadMajor
After failed casing attempts, Challenger abandons the old-well re-entry at Mercury Stetson and will sidetrack from about 5,100 ft, needing a drilling rig in the new year for about 7,000 ft. It says re-entry was only partially successful, and it is discussing adjusted farm-in obligations with the JV.
5 Dec 2011drilling progress report▼ Bad
Mercury Stetson has slowed: the 7-inch casing slipped outside the 9 5/8-inch casing and stuck, and is being recovered. The 10-14 day timetable resets. Triple Crown work is delayed to the new year, so the planned frac slips again.
24 Nov 2011drilling progress report▲ Good
Mercury Stetson re-entry is going well: the rig cleaned out to 10,022 ft and tagged the bridge plug above the reservoir. The company expects the re-entry to succeed. New casing, logging and cementing are expected within 10-14 days, after a Thanksgiving pause.
23 Nov 2011investor presentation● Neutral
AGM presentation repeating known strategy and projects (Mercury Stetson, Triple Crown, South Africa). It shows a 6.5c share price, A$13.9m market cap and cash of about A$4.5m, down from A$5.9m in August. No new announcement.
21 Nov 2011drilling progress report● Neutral
The rig is on site and re-entry at Mercury Stetson began last week. It is drilling out the cement plug at 2,550 ft, on the way to new casing at about 10,000 ft. Nothing new on results.
11 Nov 2011agm notice● Neutral
Directors Much and Bilston offer a 15c minimum exercise price on their proposed AGM options, citing the share price fall after Triple Crown. The company says 15c is a 215% premium to the 7c close on 10 Nov. AGM is 23 Nov 2011.
9 Nov 2011drilling spud▲ GoodMajor
Mercury Stetson operations begin: lease construction approved and equipment mobilised, with the rig due mid-November. The 3-5 week re-entry is followed by a frac, possibly late Dec/early Jan. Management calls it 'transformational' after the Triple Crown disappointment.
31 Oct 2011quarterly activities report● Neutral
September quarter: the Triple Crown Ellenburger test is complete with no commercial gas, and the slick-water frac of the hybrid zone (7.4 TCF) is planned for late 2011. Mercury Stetson re-entry is set for November. Maricopa sold 2,291 barrels; Cranemere approval is still awaited.
26 Oct 2011drilling result▼ BadMajor
The Triple Crown Ellenburger lateral reached 6,112 ft. Significant drilling breaks were seen, but gas shows did not rise and no commercial gas flow was observed. The Ellenburger (1.6 TCF) test is disappointing; the hybrid zone frac is now 6-8 weeks away because of a frac equipment shortage.
24 Oct 2011drilling progress report● Neutral
The Triple Crown sidetrack reached 5,670 ft and is building angle toward the Ellenburger. Minor gas shows were seen but the company draws no conclusions. A broken bit and mechanical issues cost a few days.
19 Oct 2011director officer appointment● Neutral
Mike Much, who already heads the US operations, joins the board as a director. Executive director David Prentice has said he will step down at the coming AGM.
