28 May 2018drilling progress report● Neutral
Albany 1 is at 1,336 m, drilling ahead in 8-1/2 inch hole through the Jochmus Formation after setting surface casing at 747 m. Total depth is still prognosed at about 2,775 m. No reservoir results yet.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
21 May 2018drilling spud▲ GoodMajor
Albany 1 spudded on 19 May 2018 and was at 711 m by 21 May. It is programmed to reach about 2,775 m in roughly 25 days. It is 220 m from Carmichael 1 and is the first well in Vintage's farm-in.
14 May 2018drilling progress report● Neutral
Rig 101 has been released from its other job and is moving to Albany 1, with first loads arriving that afternoon. Spud is expected late this week, possibly over the weekend. No well results yet.
8 May 2018director officer appointment● Neutral
Peter Harding-Smith becomes full-time CFO, succeeding Don Langdon, who retires after nine years part-time and stays part-time briefly for the handover. COI says the move reflects increased activity after the Mahalo upgrade and the Albany 1 drilling.
7 May 2018drilling scheduled● Neutral
Rig 101 is about to move to Albany 1, with spud expected next week. The well targets roughly 40 m of interpreted net pay in about 140 m of sandstone, drilled with nitrogen. Certified contingent resource is 56/153/417 PJ (1C/2C/3C).
27 Apr 2018quarterly activities report▲ Good
March quarter: Mira 6/2 reached 1 million scf/d, with its limit extrapolated at 1.2 to 1.3 million, held back by a small flowline. The report also covers the reserves upgrade, COI's reappointment as Mahalo agent, the Vintage deal going unconditional and the mid-May Albany 1 spud.
24 Apr 2018drilling scheduled● Neutral
Albany 1 contracts, including Easternwell Rig 101, are in place and the drill site is built, but spud has slipped to mid-May until the rig finishes another job. Earlier target was mid-March to early April. Vintage earns 15% by funding the first well.
28 Mar 2018production update▲ Good
Mira 6/2 gas flow passed 1 million scf/d (about 1 TJ/d) and is still rising, up from 840,000 earlier in March. Water rates are already falling from their peak, consistent with the earlier Mahalo pilot.
13 Mar 2018investor presentation● Neutral
March investor presentation repeats known facts: 2P 172 PJ and 3P 374 PJ at Mahalo, with a final investment decision targeted for late calendar 2018. It shows 673.5m shares, 7.0m performance rights and cash of $13.8m at 31 December 2017.
12 Mar 2018production update▲ Good
Mira 6/2 gas flow passed 840,000 scf/d and is still rising toward 1,000,000 scf/d, continuing the climb from 625,000 in February. Management says it supports the new reserves upgrade and expects future development to use longer horizontal wells.
12 Mar 2018half year report● Neutral
Half-year accounts to 31 December 2017 show a loss of $1.777m (prior year $2.033m). The report restates the 5 March reserves upgrade and the Mahalo program being completed on time and on budget. Cash balance is not visible in the text provided.
6 Mar 2018resource reserve update▲ GoodMajor
Independent certifier MHA lifts COI's net Mahalo 2P reserves 473% from 30 PJ to 172 PJ and 3P 71% to 374 PJ, with a maiden 1P of 18 PJ. The 334 PJ gross trigger is passed, so COI can cash call Santos for $1.348m of 2017 costs.
1 Mar 2018farm in farm out completion▲ GoodMajor
All conditions are met for Vintage Energy's farm-in to the Galilee 'Deeps' (sandstone below the coals); the joint venture and co-ordination agreements are finalised. Vintage's roughly $8.5m earns up to 30%, and Albany 1 is expected to spud next month. COI keeps 100% of the coal 'Shallows'.
26 Feb 2018production update▲ GoodMajor
Mira 6/2 gas flow passed 625,000 scf/d, now above the 2016 Mahalo pilot's output, which had 361 m in coal against Mira's 924 m. Management calls Mira the best performing pilot in the block and expects further increases. The reserves upgrade is still pending.
23 Feb 2018material agreement▲ Good
Santos has re-appointed Comet Ridge under a second agency agreement to run the Mahalo 2018 exploration work program and budget, after the 2017 program was completed. Comet expects the budget to be formally approved next week. It continues the 2017 arrangement.
7 Feb 2018production update▲ Good
Mira 6/2 gas flow passed 390,000 scf/d with the upward trend continuing. All technical data is now with the independent certifier for an updated Mahalo 2P and 3P reserves assessment, due in the first quarter. This follows the 200,000 scf/d mark in January.
31 Jan 2018quarterly activities report▲ Good
December quarter: Mira 6 drilled through nearly 1 km of coal, field work finished under budget, and gas passed 200,000 scf/d. Vintage's funding condition was met on 30 January; Albany 1 spud is targeted mid-March to early April. An updated Mahalo reserves report is expected in Q1 2018.
15 Jan 2018production update▲ Good
Mira 6/2 gas flow passed 200,000 scf/d on a rising trend, rising faster than the shorter horizontal at the Mahalo pilot. Bottomhole pressure remains relatively high, which management says indicates room for more gas as pressure falls.
19 Dec 2017production update▲ Good
The Mira 6/2 combination began producing gas two days after start-up and is now the field's peak water producer. Three Mira pilot wells are producing gas, with rates rising steadily. Pump speed will be raised over Christmas; another update is due in early January.
11 Dec 2017production update▲ Good
The Mira 6 horizontal well, with about 920 m in coal, came on-line on 10 December via the Mira 2 pump, producing water as planned. Rain delayed the start by two weeks. Mira 5 and Mira 3 are already producing gas.
1 Dec 2017capital raising announcement▲ GoodMajor
The Share Purchase Plan drew over $4.4m of applications against a $3m target, and was scaled back to about $3.1m at $0.235. Together with the $10m placement, this completes the November raising; new shares are allotted 1 December.
22 Nov 2017drilling progress report▲ Good
The Mira 2 pump was installed on 21 November and the 2017 field work is finished. Management expects the three-step program to cost under the $5m approved JV budget. Mira 2 is to be reconnected by APLNG; no new gas results yet.
22 Nov 2017investor presentation● Neutral
Managing Director's AGM presentation repeats the existing story: Mahalo moving towards a reserves upgrade, Galilee over 2,200 PJ 3C and Gunnedah over 560 PJ 3C. No new results are visible in the text provided.
14 Nov 2017drilling result▲ GoodMajor
Mira 6 finished at 1,283 m along the well, with about 920 m in coal (99.6% in coal), and the rig is released. Mira 2 will be pumped again within a week. Built in 11.2 days against a 12-14 day plan, the well adds drainage to the Mira pilot.
13 Nov 2017capital raising announcement● Neutral
Comet Ridge opens its Share Purchase Plan: eligible holders at 8 November can buy up to $10,000 of shares at $0.235, the same price as the $10m placement. It aims to raise up to $3m; closes 28 November. Follows the 9 November raising.
10 Nov 2017drilling result▲ GoodMajor
Mira 6 intercepted the Mira 2 vertical well. It reached 777 m along-hole, with about 415 m of coal drilled and the well path 100% in coal. Drilling continues south-southeast to lengthen the horizontal section.
9 Nov 2017capital raising announcement▲ GoodMajor
Comet Ridge raised $10m through a placement of about 42.6m shares at $0.235, a 14.5% discount to the 5-day VWAP, and offered a Share Purchase Plan of up to $3m at the same price. Funds go to Mahalo, the Albany appraisal and working capital. The price is well above June's $0.125 raising.
What it means for a shareholder
42.6m new shares at A$0.235 to raise about A$10.0m. That's 6.5% dilution: every existing holder's slice gets 6.5% smaller. If you held A$1,000 of shares (4,255 at the issue price), your slice goes from 0.000689% to 0.000644% of the company. To keep it you'd need 293 more shares - about A$69 at the issue price.
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7 Nov 2017drilling progress report● Neutral
Mira 6 build section was drilled to 362.6 m at 82 degrees inclination at the top of the Castor seam, and 7-inch casing was cemented. The crew is preparing to steer along the seam towards Mira 2. Progress update with no production result yet.
3 Nov 2017drilling spud▲ GoodMajor
The Mira 6 horizontal well spudded on 2 November 2017, as delayed from October. Surface hole was drilled to 42 m and cased. It is designed to intersect the Mira 2 vertical well and speed up gas and water production, using Silver City Rig 20.
3 Nov 2017investor presentation● Neutral
Managing Director's November 2017 presentation repeats the Mahalo, Galilee (over 2,200 PJ 3C) and Gunnedah (over 560 PJ 3C) story. It shows 617.7m shares, cash of $4.2m at 30 September 2017 and a $0.28 share price on 1 November. No new results.