17 Oct 2011drilling progress report● Neutral
At Triple Crown the cement bond log showed good casing integrity, the whipstock is set and the rig has started milling the casing window for the sidetrack. Nothing new on results.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
10 Oct 2011drilling progress report● Neutral
Equipment is mobilising to Triple Crown. A cement bond log is due Tuesday and the sidetrack should start later in the week, finally getting the long-delayed program going.
22 Sept 2011drilling scheduled● Neutral
A Nabors rig is booked for early November to re-enter the 1978 Mercury Stetson well (clean out to ~11,400 ft, log, case, frac). The Triple Crown rig is expected to mobilise within 14 days, a further slip from the late-August forecast.
22 Sept 2011annual report● Neutral
Annual report for the year to 30 June 2011. The highlights are the Triple Crown gas column over 2,300 ft (9 TCF in place), the Mercury Stetson acquisition and steady Maricopa production. Financial figures were truncated, so none are given.
29 Aug 2011joint venture update● Neutral
Challenger sets up a US operating group headed by Mike Much and is registered as a Texas operator. Triple Crown rig now expected in 4-6 weeks. South Africa's moratorium is now said to run to February 2012, so Cranemere approval is expected early 2012.
29 Aug 2011investor presentation● Neutral
August 2011 investor presentation repeating known projects and strategy. It lists 214.0m shares, 105.2m listed options, a 12c share price, about A$25.7m market cap and cash of about A$5.9m. No new announcement.
10 Aug 2011farm in farm out agreement▲ GoodMajor
Challenger agrees to earn up to 50% of the Mercury Stetson Prospect in North Texas (Barnett and Woodford shales, up to 55,000 acres, OGIP 360 BCF/sq mile) by drilling two wells, renewing leases and running seismic, as operator. Up to US$2.2m is payable; the rest of the terms were truncated.
4 Aug 2011drilling scheduled● Neutral
The rig for Triple Crown is likely onsite in late August, after delays, once it finishes its last well for another operator. The planned Ellenburger sidetrack (1.6 TCF) and Hybrid Zone frac (7.4 TCF) are unchanged; this follows the earlier slip to August.
28 July 2011quarterly activities report● Neutral
June quarter: the Triple Crown testing start slips to August 2011. Maricopa sold 1,802 barrels (#6 at 23 bopd). The Cranemere approval is still awaited, with media speculation that the shale gas study may report soon.
14 June 2011drilling scheduled▲ GoodMajor
Testing at Triple Crown is expected to start next month: a short horizontal sidetrack into the Ellenburger (1.6 TCF), then a large slick-water frac at about 5,200 ft in the hybrid zone (7.4 TCF). Land leasing is progressing. This sets the plan after the 9 TCF estimate.
26 May 2011other● Neutral
Top 20 holders list as at 26 May 2011: the top 20 hold 50.11%, led by LQ Super at 8.22%. Managing director Paul Bilston's family holds 1.87%. Administrative.
2 May 2011regulatory community update▼ BadMajor
South Africa's Department of Mineral Resources said it will neither accept new shale gas applications nor finalise existing ones until a study is completed. Challenger expects the Cranemere exploration right award to be delayed, though the application's validity is unaffected.
21 Apr 2011quarterly activities report● Neutral
March quarter: Maricopa sold 1,962 barrels (#6 at 22 bopd). Silverthread is to be surrendered after Solimar settled, ending that thread. Deer Creek remains under review. Triple Crown core results are due late May, and the $7.1m placement is noted.
20 Apr 2011capital raising announcement▲ GoodMajor
Challenger raises A$7.1m at 15c per share via a placement managed by Patersons: 30.667m shares now (A$4.6m) and 16.66m (A$2.5m) subject to shareholder approval in late May. Funds go to Triple Crown land, fracture stimulation and testing, and the Cranemere application.
5 Apr 2011other● Neutral
48,474,038 restricted shares, issued 20 April 2010, will be released from escrow on 20 April 2011. These appear to be the Bundu consideration shares, an inference from the earlier escrow figure. Administrative.
15 Mar 2011half year report● Neutral
Text not readable.
28 Feb 2011resource reserve update▲ GoodMajor
Challenger assesses 9.0 TCF of original gas in place across its 45,000 acres: Canyon Sands 1.5, unconventional 5.9, Ellenburger 1.6 TCF. It will focus on the Canyon hybrid play and drill a new horizontal Ellenburger well, since lost-circulation material likely filled fractures in the current well.
28 Feb 2011security holder rights change● Neutral
Revised notice corrects the loan conversion to 43.7m shares: $2.9m settled at 8.5c and $1.1m at 14c, plus 27.65m free options. Issued capital is now 166.7m shares. It corrects the 24 February notice, which showed 48.8m shares.
24 Feb 2011security holder rights change● Neutral
Notice of 48.8m shares issued to settle loans, at 8.5c ($2.3m) and 14c ($1.1m), plus 27.65m free 20c options. This is the planned conversion of the loan facilities into equity. Revised four days later.
31 Jan 2011quarterly activities report● Neutral
December quarter report largely repeats the Triple Crown results (over 2,300 ft gas, 7,431 ft TD). Maricopa sold 2,281 barrels, with Maricopa #6 at 23 bopd. South Africa BEE partners are finalised and the environmental plan is under review.
28 Jan 2011drilling result▲ Good
Logging is complete and the well is temporarily secured. The company calls the unconventional gas a new discovery and plans a fracture stimulation. Ellenburger interpretation awaits image-log processing (end February). A resource estimate is expected in 4-6 weeks.
21 Jan 2011drilling result▲ GoodMajor
The first Triple Crown well reached TD of 7,431 ft, with a gross gas column over 2,300 ft and over 1,300 ft of gas-charged Ellenburger. It appears to have missed fracture swarms, so a horizontal well or fracture stimulation is the likely next step.
18 Jan 2011drilling result▲ GoodMajor
Petrophysics confirms high gas saturation across the Lower Canyon Sands from 4,530 to 5,685 ft, a mix of conventional and unconventional zones. The Ellenburger top is at 6,020 ft with dry cuttings. The well is at 6,533 ft and is to be suspended for testing.
17 Jan 2011other● Neutral
Challenger publishes its amended securities trading policy for directors, executives and employees under ASX Listing Rule 12.9. Governance document with no operational or financial news.
12 Jan 2011drilling result▲ Good
Wireline logging and sidewall coring are complete. Preliminary analysis shows Canyon sands with properties similar to successful analogous fields, and the logs support the unconventional gas shows. Full petrophysical results are still to come.
10 Jan 2011drilling progress report● Neutral
The top of the Ellenburger was intersected at about 5,800 ft, slightly deeper than expected, with gas shows continuing. Circulation was lost, so casing will be set at this point after logging rather than drilling further. At least 2,000 ft of Ellenburger is anticipated.
4 Jan 2011drilling result▲ Good
Strong gas shows continue between 4,500 and 5,560 ft, and the well appears to have over 1,000 ft of potentially gas-charged zones, subject to log analysis. Drilling continues toward the top of the Ellenburger, expected within about 200 ft.
29 Dec 2010drilling result▲ GoodMajor
The Triple Crown well hit a gross gas-charged Canyon Sands interval from 4,520 to 4,790 ft, with stronger gas shows and a main sand over twice as thick as expected. Evaluation awaits logs; the Ellenburger remains the primary target.
22 Dec 2010security holder rights change● Neutral
Notice that 13,350,000 free attaching options (20c exercise, expiring 30 June 2012) are issued around 22 December under the loan agreement. They match the 10 options per $1 attached to the facility; administrative.
20 Dec 2010debt financing● NeutralMajor
More gas sands are reported between 3,370 and 3,620 ft, with the well at 3,740 ft; assessment awaits logs. Challenger also agrees a second unsecured facility of up to A$1.5m at 10% interest with 10 options per $1, to be converted to equity at a general meeting in early 2011.