9 Sept 2008drilling progress report▲ Good
Bull 42-4 shows oil in core across the Codell Formation. The crew is trying to run 7-inch casing to 4,267 feet, and a smaller string may be needed if hole conditions require.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
3 Sept 2008drilling progress report● Neutral
Bull 42-4 is at 3,792 feet after cutting five cores, about to resume drilling toward 4,530 feet. No hydrocarbon indications so far. COI's CRR equity is now stated as 27.18%.
3 Sept 2008capital raising announcement● NeutralMajor
Pine Brook invested a further US$9.65m in Comet Ridge Resources on 26 August, lifting its stake to 72.42%. COI's interest fell from 43.75% to 27.18%. Funds drilling, seismic, leases and costs. COI paid nothing; this is dilution in CRR.
26 Aug 2008drilling progress report● Neutral
Rainbow #23-20 reached its planned 3,700 feet total depth and was cased for production testing. Testing of Golden, Apache and Rainbow was due in early September, and the fourth well, Bull 42-4, was drilling ahead at 646 feet.
22 Aug 2008director officer appointment● NeutralMajor
David Bradshaw, a non-executive director and former Tipperary CEO, becomes Managing Director from 1 September 2008, based in Brisbane, to grow the Australian business. Andy Lydyard becomes non-executive director and CEO of Comet Ridge Resources. Bradshaw gets US$320,000 salary and 4.5m options at A$0.25.
19 Aug 2008drilling progress report▲ Good
Rainbow #23-20 is drilling ahead at 2,983 feet toward 3,700 feet, with elevated gas readings and oil observed in the reserve pit.
12 Aug 2008drilling result▲ Good
Apache #33B-20 drilled trouble-free to 3,517 feet, with oil seen in the reserve pit, and is cased for production testing. The rig moves to the third well, Rainbow #23-20.
5 Aug 2008drilling spud● Neutral
Golden's liner is installed and awaiting testing. The second Florence well, Apache #33B-20, spudded on 2 August and is setting surface casing at 693 feet, with a planned vertical depth of 3,500 feet.
29 July 2008drilling result▲ GoodMajor
Golden #33-20 stopped early at 3,606 feet, short of the 4,926 feet plan, because of difficult drilling conditions and strong oil shows in the Pierre Formation. Liner is being run for production testing. Pine Ridge has now earned its 97.25% Florence interest.
22 July 2008drilling progress report● Neutral
Golden #33-20 deviated from its planned course and was sidetracked; now drilling at 1,485 feet. Oil and gas shows were found in the original hole, with controlled flows of flammable gas flared at surface.
21 July 2008investor presentation● Neutral
Investor presentation restates the Pine Brook deal and shifts COI's focus to growing its Australian coal seam gas business. It cites Mahalo above 1 TCF gas in place and Galilee permits potentially 35+ TCF (internal estimates). Mostly repeats known facts.
15 July 2008drilling progress report● Neutral
Golden #33-20 reached 3,248 feet, then paused for rig repairs with drilling to resume within 36 hours. No hydrocarbon indications reported at this stage.
8 July 2008drilling spud● NeutralMajor
First Florence well, Golden #33-20, is drilling at 696 feet toward a 4,926 feet target after a few days' delay from Colorado rig-moving restrictions. No hydrocarbon indications yet. CRR pays all costs; COI holds 43.75% of CRR, which holds 97.25% of Florence.
27 June 2008farm in farm out completion▲ GoodMajor
The Pine Brook deal closed on 26 June 2008, as expected by end-June. COI's US projects went into Comet Ridge Resources for 43.75%; Pine Brook put in US$7m cash plus the Strike Oil Rocky Mountain assets bought for US$2m for 56.25%. US staff now work for CRR; Florence drilling starts this weekend.
19 June 2008investor presentation▲ Good
Managing director interview explains the Pine Brook deal: COI contributes US$7m of US assets for 43.75% of Comet Ridge Resources, Pine Brook can lift to 80% with US$19m more. Plans 3-4 Florence wells and Grays Harbor seismic; rig due by month-end. Largely repeats the 10 June announcement.
10 June 2008business combination▲ GoodMajor
Comet Ridge will contribute its US assets (valued at US$7m) to a new Pine Brook-backed company, Comet Ridge Resources, for 43.75% of its equity. Pine Brook holds 56.25% and can fund up to US$100m, rising to 80%. Closing is due by end-June, with a bridge loan; US staff move across. Australian assets stay.
10 June 2008asset acquisition disposition● Neutral
Strike Oil is selling its Rocky Mountain interests in the Comet Ridge joint ventures to Pine Ridge Oil & Gas for US$2m cash plus about US$0.5m costs, settling end-June. It keeps its 8.34% Comet Ridge shareholding. This is Strike's side of the Pine Brook restructure.
30 Apr 2008other● Neutral
Strike Oil's Texas and Colorado update. On Comet Ridge assets it relays the Florence drilling start in early May and Freedom's withdrawal, which would have cut Strike's Tow Creek interest to 10% and Bear River's to 6.25%. Nothing new on Comet Ridge.
30 Apr 2008material agreement termination▼ BadMajor
Freedom Natural Resources withdrew from the Tow Creek/Bear River farm-in announced on 19 March, giving no reason. This leaves the funding of the next Tow Creek wells unresolved; Comet Ridge has started talks with other interested parties.
29 Apr 2008drilling scheduled▲ Good
Colorado granted drilling permits for four Florence wells. The initial program is cut to two wells, Golden and Apache, from one pad, with the rig due in early May. About 3,000 acres were added north of Florence. Further drilling depends on initial results.
25 Mar 2008other● Neutral
Strike Oil cover note forwarding Comet Ridge's Florence update; Strike holds 39%. Nothing new.
20 Mar 2008drilling scheduled● Neutral
Xtreme Coil Drilling was contracted for the initial three Florence wells (Golden 33-20, Apache 33B-20, Bull 42-4). Drilling is now expected in early May, later than the late March target, pending permits and joint venture approvals. Comet Ridge is operator.
19 Mar 2008farm in farm out agreement▲ GoodMajor
Letter of intent with Freedom Natural Resources: Freedom would fund a new Tow Creek crest well (start by 1 July) and a Peltier 11-12 re-entry, and become operator. Comet and Strike's combined interests would fall to 20% (Tow Creek) and 12.5% (Bear River). Closing expected by 28 March.
10 Mar 2008half year report● Neutral
Half-year report to 31 December 2007 restates the 2008 plan: Florence wells from late March, Grays Harbor seismic in April, over nine wells in 2008. The company has retained a Denver advisory firm to help raise capital, and notes the Chehalis deal. Largely repeats the quarterly report.
25 Feb 2008director officer appointment● Neutral
Non-executive director Simon Ashton, a founder since late 2003 and Strike Oil's managing director, resigned effective 22 February 2008. The board is now three US-based and two Australian-based directors. Final interest notice shows family holdings of about 2.64m shares and 500,000 options.
19 Feb 2008farm in farm out completion▲ Good
The Chehalis deal with Oklaco closed on 15 February as scheduled. US$463,000 was received and St. Helens now holds 10% of over 140,000 acres, free-carried through 5 wells. Drilling is still anticipated in Q2 2008.
6 Feb 2008farm in farm out agreement▲ GoodMajor
St. Helens signed a deal with Oklaco's consortium on Chehalis: it sells 75% of its 40% interest (keeping 10%), gains 10% of another 65,000 acres, and gets US$463,064 cash plus a free carry on 5 wells. Drilling is expected in Q2 2008, resolving the earlier Vader delay.
1 Feb 2008capital raising announcement● NeutralMajor
Comet Ridge withdrew the 1-for-4 entitlement issue at A$0.165 (up to A$4.3m) announced on 18 January, citing positive US business developments. Directors will review capital spending and reconsider any future raising. No money was raised.
18 Jan 2008capital raising announcement● NeutralMajor
Comet Ridge launched a non-underwritten 1-for-4 entitlement issue of up to 26.2m shares at A$0.165 to raise up to A$4.3m, a 16% discount to the 10-day VWAP. Funds go to Florence drilling and Grays Harbor seismic. There is no minimum; a shortfall may mean fewer wells.
What it means for a shareholder
26.2m new shares at A$0.165 to raise about A$4.3m. That's 48% dilution: every existing holder's slice gets 48% smaller. If you held A$1,000 of shares (6,061 at the issue price), your slice goes from 0.0214% to 0.0111% of the company. To keep it you'd need 5,597 more shares - about A$924 at the issue price.
Create a free account to see this worked out for your own holding.
18 Jan 2008drilling scheduled▲ Good
2008 outlook: Comet Ridge plans at least 10 wells this year, starting with three to five at Florence from late March targeting 3.5 million barrels gross. Grays Harbor seismic starts in April, and two Tow Creek wells depend on finding a farm-out partner.