22 Sept 2010drilling scheduled▲ Good
Oil Basins signs the drilling contract with Hunt Energy for Rig 3, which is being mobilised from the Amadeus Basin. Backreef-1 is expected to spud around 6 October 2010, with about 10 days to reach 1,600m.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
16 Sept 2010capital raising announcement▼ BadMajor
Rights issue closed 13 September with only $2,071,062 raised for 51.8m shares, well short of the $5.26m target. A shortfall of 80.9m shares remains, with about 79.8m underwritten by Patersons.
9 Sept 2010annual report● Neutral
Annual report for the year to 30 June 2010 reviews the portfolio, the 9 August LNG alliance and the planned Backreef-1 well to 1,500m by 31 October. The excerpt shown contains no financial figures.
6 Sept 2010investor presentation● Neutral
September presentation on the Canning Basin and Backreef-1 wildcat restates the 90% beneficial rights, the 31 October deadline, Buru's 30% back-in right and the roughly $1.9m dry-hole cost. No new information.
6 Sept 2010drilling scheduled▲ GoodMajor
Oil Basins conditionally commits to drill Backreef-1 to 1,600m, signs a letter of intent for Hunt Energy Rig 3, and lodges its drilling approval application. Spud is targeted for early October; dry-hole cost about $1.9m, conditional on the rights issue raising $5.262m.
31 Aug 2010capital raising announcement● Neutral
Company confirms the rights issue prospectus and application forms were sent to eligible shareholders and attaches the prospectus. Offer terms (1-for-1 at 4 cents, Patersons underwritten, closing 13 September) are unchanged.
18 Aug 2010capital raising announcement● Neutral
Letter to holders sets out the 1-for-1 rights issue at 4 cents (record date 26 Aug, closing 13 Sept), raising $5,261,810 with free 4-cent options. Option holders must exercise by 24 August to participate. Repeats terms already announced.
17 Aug 2010capital raising announcement▲ GoodMajor
Oil Basins announces a fully underwritten 1-for-1 rights issue at 4 cents raising $5,261,810, with one free 4-cent option (expiry June 2014) per four shares. Underwritten by Patersons; funds Backreef-1 drilling to earn 90%, gas assessment and native title work. Closes 13 September.
17 Aug 2010investor presentation● Neutral
August presentation covers the portfolio, coal seam and shale gas potential, the LNG alliance and the rights issue. Lists 131,545,267 shares, cash about $0.42m and a market value of $8.7m at 6.6 cents. Repeats known facts.
17 Aug 2010listing compliance notice● Neutral
ASX lifts the suspension of Oil Basins shares and options immediately after the rights issue announcement. Administrative only.
17 Aug 2010capital raising announcement● Neutral
Prospectus lodged for the 1-for-1 rights issue at 4 cents to raise about $5,261,810, conditionally underwritten by Patersons, with free 4-cent options expiring 30 June 2014. Repeats the terms already announced; offer closes 13 September 2010.
16 Aug 2010listing compliance notice● Neutral
Following a trading halt on 12 August, Oil Basins requests suspension of its shares and options pending an announcement about raising finance for operations. Suspension lasts until the announcement or the start of trading on 18 August.
10 Aug 2010material agreement▲ GoodMajor
Oil Basins signs a non-exclusive alliance with Liquefied Natural Gas Ltd, the placement investor (4.94%), to evaluate a Canning Basin LNG facility. Oil Basins may invest up to 20% at cost, rising to 30% if 2P reserves of at least 1.0 TCF are certified within 4 years.
10 Aug 2010material agreement● Neutral
Liquefied Natural Gas Ltd's own release of the same alliance, describing a Kimberley LNG project using Canning Basin gas, including Oil Basins' acreage. It confirms a 4.9% shareholding. Largely duplicates Oil Basins' announcement.
5 Aug 2010price query● Neutral
ASX queried a rise from 4.5 cents to a high of 8.1 cents. Oil Basins says it knows of no undisclosed information and points to the quarterly report's Backreef-1 preparations and the 6.5m-share strategic placement.
2 Aug 2010admin correction● Neutral
Re-release of the 30 July June quarterly report because Table 2a was accidentally left out when converted to PDF. Content otherwise the same; no new information.
27 July 2010capital raising announcement▲ GoodMajor
Oil Basins places 6.5 million shares at 4 cents to one exempt investor, raising $260,000. Funds are for working capital and further coal seam and shale gas work in the Canning Basin. The investor is not named here.
What it means for a shareholder
6.5m new shares at A$0.040 to raise about A$260,000. That's 5.0% dilution: every existing holder's slice gets 5.0% smaller. If you held A$1,000 of shares (25,000 at the issue price), your slice goes from 0.02% to 0.019% of the company. To keep it you'd need 1,302 more shares - about A$52 at the issue price.
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12 July 2010investor presentation● Neutral
Presentation at the Resources Victoria conference repeats the portfolio, the 8 July coal seam and shale gas findings, and the revised Backreef-1 plan. Restates known facts; no new announcement.
8 July 2010resource reserve update▲ GoodMajor
A second independent report estimates in-situ coal of 50.6 to 118.2 billion tonnes and gross prospective coal seam gas of 4.3 to 10.0 TCF (mean 6.8). It also estimates unrisked shale gas in place of 106.5 to 527.5 TCF (mean 263.8). Prospective only, with no gas proven.
1 June 2010resource reserve update▲ GoodMajor
An independent coal report finds the Permian Lightjack Formation coal is deep enough for coal seam gas across all of the 50% 5/07-8 EP permit, best near Booran-1 by Derby. Oil Basins' acreage is assessed at up to 2 billion tonnes of potential coal. Desktop study only; Backreef-1 would test coal at a suboptimal 150 m.
4 May 2010farm in farm out agreement● Neutral
Oil Basins, appointed by the Vic/P41 joint venture to manage the farm-out, publishes a permit summary seeking farminees. All partners (Bass Strait Oil 45%, Moby 30%, Strategic 25%, Oil Basins 12.5% rights) want to sell down to fund drilling. No deal yet.
22 Apr 2010security holder rights change● Neutral
Oil Basins posted an OBLOA option conversion form on its website so holders could convert options into OBL shares. It said it would process conversions bi-weekly, with completed forms and a cheque posted to its St Kilda office.
13 Apr 2010capital raising announcement▼ BadMajor
Oil Basins closes the Canning Basin Oil offer immediately; applicants totalling $72,500 chose conversion into 1,812,500 shares at 4 cents with free options instead of refunds. The offer raised far below its minimum, so Backreef-1 remains unfunded (inference).
1 Apr 2010regulatory community update● Neutral
Oil Basins restates its coal seam gas operator role at 5/07-8 EP and says it may widen the study to the Backreef Area (80%, rising to 90%), where Backreef-1 is still intended for 2010. No new results or figures.
26 Mar 2010material agreement▲ Good
Oil Basins is appointed designate coal seam gas operator of permit 5/07-8 EP (50/50 with Backreef Oil), agreeing to fund the first $100,000 of studies and seek farminees. Subject to approvals and permit issue; native title dealings stay with Backreef Oil.
16 Mar 2010half year report● Neutral
Half-year to 31 December 2009: net loss $378,579 (prior year $426,923), cash $558,642, no borrowings. Largely restates quarterly highlights; the cash is higher than the quarterly report's circa $0.48m net figure.
23 Dec 2009capital raising announcement▲ GoodMajor
Placement of 20 million shares at 2 cents raises $400,000, with a free 1-for-2 option exercisable at 1.5 cents to June 2012. The company says it funds the work program and working capital; this addresses the thin cash flagged earlier.
What it means for a shareholder
20.0m new shares at A$0.020 to raise about A$400,000. That's 17% dilution: every existing holder's slice gets 17% smaller. If you held A$1,000 of shares (50,000 at the issue price), your slice goes from 0.0504% to 0.0419% of the company. To keep it you'd need 10,071 more shares - about A$201 at the issue price.
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17 Dec 2009admin correction● Neutral
Amended re-release of the coal seam methane study announcement; the only visible change is the LNG hub distance, now about 170 km due west of the permit mid-point instead of about 110 km.
16 Dec 2009regulatory community update● Neutral
Oil Basins starts a desktop coal seam methane study of the 5,062 sq km Canning Basin permit 5/07-8 EP (50% interest), with an independent expert report due March 2010. Permit award still awaits native title and other approvals; no work beyond the study.
8 Dec 2009capital raising announcement● Neutral
Canning Basin Oil offer extended to 31 March 2010 with minimum cut from $3.0m to $650,000 (5% net profit interest), $3.5m for 25%. Oil Basins may fund any Backreef-1 shortfall directly; earliest drilling late June quarter 2010. Third change to the offer.