7 Sept 2016capital raising announcement● Neutral
Offer booklet for the 0.8-cent Share Purchase Plan announced earlier the same day, with $1,000 to $15,000 parcels. It states 215,393,561 shares were on issue. No new terms.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
7 Sept 2016capital raising announcement● NeutralMajor
OBL announced a Share Purchase Plan at 0.8 cents per share, a premium to recent trading, open 14-28 September 2016 with applications of $1,000 to $15,000. If fully subscribed it would raise about $516,000 from some 64.6 million new shares.
What it means for a shareholder
64.6m new shares at about A$0.008 to raise about A$516,000. That's 23% dilution: every existing holder's slice gets 23% smaller. If you held A$1,000 of shares (125,194 at the issue price), your slice goes from 0.0581% to 0.0447% of the company. To keep it you'd need 37,548 more shares - about A$300 at the issue price.
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24 Aug 2016asset acquisition disposition● Neutral
Ochre Group says the $400,000 of loans to OBL would be the price for buying OBL's royalties subsidiary (2% royalties in Vic/P47, EP487 and Cyrano). The Ochre mandate would be terminated. Subject to due diligence, a sale agreement and approvals.
24 Aug 2016asset acquisition disposition● NeutralMajor
OBL agrees to sell its royalties subsidiary, holding 2% royalties in Vic/P47, EP487 and Cyrano, to Ochre, with the $400,000 of loans extinguished as payment. The mandate would end, replacing the planned rights issue. Subject to due diligence and a formal agreement.
15 Aug 2016director officer appointment● NeutralMajor
OBL appoints Justyn Peters (Leigh Creek Energy chair) and Vaz Hovanessian as non-executive directors; Nigel Harvey resigns after over six years. Board changes come as the executive team faces notice and a shareholder challenge.
11 Aug 2016capital raising announcement● NeutralMajor
OBL places 36.5 million new shares at 0.7 cents, raising $255,500 gross from sophisticated investors for working capital. A small raise that adds to dilution after the post-consolidation share count rose.
What it means for a shareholder
36.5m new shares at A$0.007 to raise about A$255,500. That's 14% dilution: every existing holder's slice gets 14% smaller. If you held A$1,000 of shares (142,857 at the issue price), your slice goes from 0.0663% to 0.0567% of the company. To keep it you'd need 24,208 more shares - about A$169 at the issue price.
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9 Aug 2016material agreement▲ GoodMajor
OBL signs a six-month mandate with Ochre for an underwritten renounceable rights issue of $3 million, up to $5 million with options. Ochre adds a $250,000 convertible loan to the earlier $150,000. Depends on Ochre finding an underwriter and approvals. Follows the 13 July deal.
9 Aug 2016debt financing▲ Good
OBL repays the full $155,000 owing on the Lind convertible funding agreement of 5 November 2015. This closes out the facility whose conversions drove share dilution through 2016.
1 Aug 2016quarterly activities report▼ Bad
OBL confirms it lost the Supreme Court dispute and Rey Lennard Shelf became EP487 operator on 2 June. No work was done on Vic/P41 and Vic/P47. Shares are about 178.9m and the Lind loan is $155,000. Staff cut to the minimum.
1 Aug 2016quarterly activities report▼ Bad
June quarter cash fell to $24,343 from $91,994, with $113,815 operating and investing outflow. Next-quarter outflow is estimated at $65k. Financing included $50,000 of share proceeds and Lind conversions. Continues the very low cash position.
20 July 2016director officer appointment● NeutralMajor
Shareholder Rocket Science (Troy Harry, over 5% holder) requisitions a general meeting to remove Executive Chairman Kim McGrath and CEO Neil Doyle and appoint Michael Jeffries and Troy Harry. This challenges the board that earlier gave the two executives notice.
13 July 2016debt financing● NeutralMajor
OBL signs a conditional provisional agreement with Ochre Group Holdings (OGH) for advice and financing, receiving a $150,000 interest-free unsecured loan. A later underwritten rights issue is contemplated; the loan would then convert to equity on the offer's terms. Subject to approvals.
10 June 2016resource reserve update● Neutral
OBL re-issues its resource tables for Listing Rule clarification, now showing EP487 as 50% non-operated. Net 2C contingent resources stay at 20.1 MMBOE. Per-share figures use 145,845,718 shares on issue at 8 June 2016, up from about 113.96m after consolidation.
30 May 2016director officer appointment▼ BadMajor
OBL has resigned as EP487 operator, with Rey Lennard Shelf taking over, and keeps its 50% interest. As a cost-cutting measure it gave six months' notice to Executive Chairman Kim McGrath and CEO Neil Doyle, who will then stay as non-executive directors.
26 May 2016joint venture update▼ BadMajor
Rey says the Supreme Court ordered Oil Basins to resign immediately as EP487 operator, with Rey Lennard Shelf designated operator. This is a loss for OBL in the dispute it vowed to defend, and removes its control of the Derby Block drilling.
26 May 2016joint venture update● Neutral
Rey Resources says the Supreme Court of Western Australia heard its EP487 operatorship case against OBL on 25 May, with the decision reserved to noon on 26 May. Procedural notice only.
17 May 2016resource reserve update● Neutral
OBL re-issues its Derby Block (EP487) resource figures for ASX Listing Rule compliance. OBL's net 50% P50 prospective resource is 12.3 Tcf gas and 307 MMbbl condensate. These are undrilled prospective estimates and the figures are not new.
29 Apr 2016quarterly activities report▼ Bad
March quarter cash fell to $91,994 from $149,091, with $57,097 net outflow. Next quarter outlay is estimated at $250k, more than the cash on hand. No loans are shown in facilities. This continues the low-cash position flagged earlier.
29 Apr 2016quarterly activities report● Neutral
March quarter report: OBL, as Derby Block operator, has set Year 2 and 3 well targets and sent a draft work plan and budget to its partner. It restates net P50 prospective resources of 12.3 Tcf and 307 MMbbl condensate. Nothing new on funding.
19 Apr 2016security holder rights change● Neutral
The 1-for-10 share consolidation is complete, cutting shares on issue from 1,139,587,360 to 113,959,055. Unlisted option prices rise tenfold. Normal trading in consolidated shares starts 21 April 2016.
15 Apr 2016security holder rights change● Neutral
Administrative timetable confirming the 1-for-10 share consolidation approved on 8 April. Normal trading in consolidated shares starts 21 April 2016. No new substance beyond the earlier notice.
14 Apr 2016admin correction▼ Bad
OBL amends its 13 April resource release to use a more appropriate condensate-to-oil conversion. Net P50 prospective falls from 2.889 to 2.822 billion BOE, of which 2.289 billion is Derby Block. Contingent figures are unchanged.
13 Apr 2016resource reserve update● NeutralMajor
OBL restates Cyrano (R3/R1) from reserves to contingent resources, citing low oil prices; 2C stays at 3.01 MMstb. Net 2C is 20.1 MMBOE and net P50 prospective is 2.889 billion BOE, mostly the Derby Block. Superseded by the next day's amendment.
11 Apr 2016security holder rights change● NeutralMajor
OBL notifies a 1-for-10 share consolidation approved by shareholders on 8 April 2016. Shares fall from 1,139,587,360 to about 113.96m, and option exercise prices rise tenfold. This follows the Lind convertible, under which Lind could require a consolidation.
15 Mar 2016half year report● Neutral
Half-year report to 31 December 2015 restates known events: Derby Block variation, 28.7 Tcf resource estimate, Rey court action. OBL says it will seek a third-party farm-in to fund its 50% of the $12.5m Year 2 wells. Financial figures not visible in the extract.
1 Mar 2016joint venture update● Neutral
OBL says it has defined 4 drilling locations in its Wet Laurel gas play at the Derby Block (EP487) and will seek to drill two in 2016. It confirms Year 1 is complete, remains operator and will defend Rey's court action, citing Rey's own prospectus.
15 Feb 2016joint venture update● Neutral
Oil Basins confirms it was served with Rey's Supreme Court summons over EP487 operatorship and will defend it. It also received about $154,000 from Rey Lennard Shelf, completing the Year 1 cash calls. The Year 2 plan for two deep wells goes to the regulator within about two months.
12 Feb 2016joint venture update▼ BadMajor
Rey Resources and its subsidiary began Supreme Court of Western Australia proceedings against Oil Basins, seeking orders that OBL resign as EP487 operator and that Rey Lennard Shelf be appointed. Rey again denies being in default. This escalates the operatorship dispute with OBL's 50% partner.
3 Feb 2016regulatory community update▲ GoodMajor
The WA regulator approved the EP487 variation on 2 February 2016: Year 1 is deemed complete and Year 2 now requires two deep exploration wells by 13 December 2016, minimum spend $12.5m, instead of the 2D seismic survey. This resolves the pending variation and moves the Derby Block to drilling.
29 Jan 2016quarterly activities report● Neutral
December quarter: Vic/P47 12-month extension approved 7 December; Vic/P41 well deferred to 2017; new Cyrano study gives 3.4 MMbbl; Derby Block resource lifted to 28.7 Tcf. The Derby Year 2 variation (two wells in 2016) was still pending at quarter end, and OBL remains operator.