Fitzroy River Corporation Limited

Argonaut appointed adviser to test market interest in selling the Bowdens royalty (2% NSR, reducing to 1% after US$5m). The Board has made no decision to sell and any deal may need shareholder approval.

asset acquisition disposition

Fitzroy started New Zealand High Court proceedings over the Snowy River royalty, as directors could not conclude the buyout option was validly exercised. It believes the royalty is likely worth materially more than the A$12m received. Escalates the March dispute.

material agreement

Fitzroy received A$12,265,134 from Tasman (Endura subsidiary) said to exercise its option to buy the Snowy River royalty. Fitzroy is holding it in escrow while checking whether a 'decision to mine' already occurred, which would void the option.

asset acquisition disposition

Shareholders approved a return of capital of 2 cents per share, funded from existing cash. It was payable on 13 May 2025 to holders on the 6 May record date, and the company has applied to the ATO for a ruling on its tax treatment.

capital raising announcement

From 2 December 2024 Susan Thomas becomes Chair (a substantial shareholder, not independent) and Mitch Dawney, Managing Director of Dawney & Co, joins as non-executive director. Resolves the succession after McComas's retirement.

director officer appointment

Chair Malcolm McComas will retire as director and chairman from 2 December 2024 after 12 years. The board will consider an additional director and a new chair.

director officer appointment

FY24 royalty income fell 30% to $725k, with a $72k loss and $216k total comprehensive loss. Cash $2.38m, no debt. Weeks producers have raised cost-deduction disputes that may cut future royalties, and the Bowdens approval was successfully challenged in court in August 2024.

annual report

Fitzroy signed documents consenting to transfer of the Snowy River royalty to Federation's Tasman on closing of its OceanaGold purchase, due June 2024. Buyout price baseline is about A$11.6m; Federation targets a decision to mine and gold production within two years.

material agreement

OceanaGold signed a US$30m sale of the Snowy River (formerly Blackwater) mine to Federation, expected to complete in 2024. Federation can buy out Fitzroy's 1-3% royalty before a decision to mine for about A$11.5m, against A$5m originally indexed. This advances the decision-to-mine thread.

asset acquisition disposition

Silver Mines announced that the NSW Independent Planning Commission approved Bowdens Silver, with a 23-year mine life. This resolves the long-awaited approvals thread. Fitzroy's 2% net smelter royalty, reducing to 1% after US$5m, now has a path to production.

regulatory community update

Spark, the unlisted company in which Fitzroy holds about 3.09%, agreed to sell its subsidiary holding 50% of the Tuck gas appraisal licence. Fitzroy expects about A$190,000 on completion, but the deal is conditional.

asset acquisition disposition

Fitzroy announced a fully franked special dividend of 0.5 cents per share, with an ex-dividend date of 14 December, a record date of 15 December and payment on 23 December 2022 by direct credit.

dividend declaration

March quarter: Rafael 1 flow tests were positive, and an independent report (ERCE) points to potential for a major gas resource, following the Currajong dry result. Ungani is cited at about 600 bopd. Buru royalty $88,010 followed; office moved to Gwelup WA.

quarterly activities report

September quarter: Buru's Currajong 1 found no oil and zones appear water-bearing, a setback for the three-well program; Rafael 1 is drilling. Ungani holds about 800 bopd. Weeks paid $201,922; Buru royalty $67,680 followed. Blackwater decline reached 1,752m.

quarterly activities report

March quarter: the entitlement offer raised $2.6M before costs and the $2.5M loan was repaid in full, with 107,954,251 shares now on issue. Ungani averaged about 511 bopd with no sales. Buru's three-well program is on track for June. Weeks paid $91,185.

quarterly activities report

Cameron Manifold joined the board as non-executive director; Justin Clyne retired as a director but stays Company Secretary. Manifold is Operations and HSE Director at Spark Exploration, in which Fitzroy holds an investment, and was formerly Well Engineering Manager at Buru.

director officer appointment

Fitzroy launched a 1-for-4 entitlement offer at $0.12 per share to raise about $2.6M, with the retail part underwritten by Taylor Collison. Proceeds are to repay the $2.5M loan due November 2021. Shares would rise from 86.4M to about 108.0M, diluting non-participants.

capital raising announcement

The outstanding $3.5M of the $5.0M loan used for the Royalco takeover was extended on the same terms to 14 November 2021. The chairman calls it a good outcome to fund Fitzroy through volatile commodity markets and COVID-19.

debt financing

Fitzroy completed compulsory acquisition of the remaining Royalco shares. Royalco is now a wholly owned subsidiary and was removed from the ASX list on 17 February. Royalco's royalty assets will now be reported in Fitzroy's own quarterly reports.

business combination

The Royalco offer closed with Fitzroy above 90%, so it will compulsorily acquire the remaining shares at the same 24 cents; notices went out 14 January. This completes the move from 47.76% to full ownership of Royalco.

business combination

Acceptances lifted Fitzroy's relevant interest in Royalco to about 93.91%, meeting the 90% minimum acceptance condition. The offer is final and closes 13 January 2020.

business combination

Royalco's independent committee recommends shareholders accept Fitzroy's 24 cent offer, in the absence of a superior proposal. The target's statement includes the independent expert's report.

business combination

Fitzroy announced an off-market takeover for the rest of Royalco at 24 cents cash a share, valuing 100% at about $12.65M (about $6.61M for the shares it doesn't own). Fitzroy already holds 47.76%. Conditions include 90% acceptance. This replaces the earlier Weeks sale plan.

business combination

Royalco, 47.76% owned by Fitzroy, agreed to sell its 1% Weeks Royalty interest to Royal Energy for $5.8M cash, below Fitzroy's earlier $6.6M bid. It needs buyer funding and Royalco shareholder approval; Fitzroy intends to vote in favour absent a superior proposal.

asset acquisition disposition

Fitzroy withdrew its proposals, which valued the Weeks Royalty at $6.6M, ending its bid to take over Royalco's royalty or the whole company. Royalco's independent directors will keep talking to other buyers. This resolves the thread opened in July.

asset acquisition disposition

Royalco disclosed a non-binding Fitzroy proposal to buy all of Royalco. Other shareholders would get about $4.7M cash, valuing Royalco at about $9.0M, with the Weeks Royalty valued at $6.6M, above other offers. It needs Royalco shareholder approval and an independent expert's opinion; Fitzroy holds about 47.76%.

asset acquisition disposition

Fitzroy received its first Ungani royalty since the restart: $36,880 as a 2% net royalty on a 60,275-barrel cargo sold at about US$46.90 a barrel. This ends the run of quarters with no royalty income since the January 2016 shutdown.

production update

Fitzroy invests a further $1M in Byron Energy's $26.5M placement at $0.07 a share, following its $0.5M stake from August 2016. It will hold 18.131M shares (about 2.76%), subject to Byron shareholder approval in mid-September.

asset acquisition disposition

Fitzroy welcomes Buru's asset swap with Mitsubishi's subsidiaries, which changes who holds the permits (EP 371 to Mitsubishi; the others to Buru 100%). Fitzroy says its royalty interests do not change. The swap is still subject to conditions.

joint venture update

March quarter: the Royalco offer closed 6 March with Fitzroy at 46.79% (24.67M shares), short of full control. Fitzroy directors joined the Royalco board; Clyne retired 6 March. No royalties received. Buru plans an Ungani restart for mid-year.

quarterly activities report

Fitzroy declares its 20 cent Royalco offer unconditional and speeds up payment to within 7 days of acceptance. Its stake is now 43.265% (22.81M shares), and it says there are no superior proposals. Offer still closes 13 February 2017.

business combination

Royalco chairman Peter Topham has accepted Fitzroy's 20 cent offer for his remaining 3.136M shares, and director Bruce Pertzel accepted for all of his. Fitzroy's relevant interest rises to 15.84M shares, or 30.04% of Royalco.

business combination

Fitzroy launches a new off-market bid for Royalco at 20 cents a share (about $10.54M), 11% above the earlier offer and recommended by Royalco's board. Fitzroy now holds 19.99% after buying 2.669M shares from an associate of Royalco's chairman.

business combination

Fitzroy launches an on-market cash takeover bid for all of Royalco Resources at 18 cents a share, via broker Taylor Collison. It already holds about 15% of Royalco. The offer period opens 3 November and closes 5 December 2016, indicative only. This is a shift to buying listed companies.

business combination

March 2016 quarter: royalties on Ungani licences L20 and L21 are now registered, resolving that open thread. Royalties received were $17,354.34. Buru's independent review puts the Valhalla gas at 1.53 TCF contingent and 13.02 TCF prospective on EP 371, where Fitzroy has a royalty.

quarterly activities report

September quarter: no royalties received. Fitzroy decided not to take up EP 390 after Apache's successor withdrew and the Commodore 1 well found no significant hydrocarbons, so the permit lapses. Ungani production licences L20 and L21 were granted. Text truncated.

quarterly activities report

The WA Supreme Court refused Fitzroy's claim for a gross royalty and ordered it to pay the defendants' costs. This ends the dispute against Fitzroy, and royalties continue on the existing terms. The amount of costs is not stated.

regulatory community update

Fitzroy announced an on-market buy-back of up to 9.07M shares (just under 10%), about $3.4M at 38 cents, from 30 May 2014 to 30 May 2015. It says it has more capital (about $12.0M cash) than it can invest in royalty deals in the next 12 months.

capital raising announcement

Fitzroy hired Royalty Stream Investments for an initial 12 months, non-exclusive, to find and assess new royalty and resource investments. Company reports about $12m cash and 90.7m shares. This starts the search to deploy the EGL UK sale proceeds.

material agreement

Sale of all 75,656,848 EGL UK shares at $0.12 each ($9.079M) completed, following shareholder approval on 24 September 2013. Cash was received in full. FZR no longer holds its 25% EGL UK stake, resolving that thread.

asset acquisition disposition

Filed a Supreme Court of WA action against Buru, two Mitsubishi subsidiaries and Mitsubishi seeking a declaration it is owed a 2% gross royalty without deductions. Payments to date of $98,370 were calculated on a net basis. This escalates the dispute open since October 2012.

regulatory community update

Agreed to sell all 75,656,848 EGL UK shares (just over 25%) at $0.12 each, $9.08M, to two Bahamas-based buyers. This is below the prior 19.2c carrying value. Needs shareholder approval; $200,000 deposit and mutual $200,000 break fee apply.

asset acquisition disposition

The $3.8M rights issue closed with applications for 11.57M of 15.13M new shares (76%, $2.892M). The remaining 3.562M shares fall to underwriter Bell Potter and its sub-underwriters, so the full amount is still raised.

capital raising announcement

The company launched a fully underwritten 1-for-5 renounceable entitlement offer at $0.25 per share to raise about $3.8M, a 26.5% discount to the last close. Funds go to the Buru royalty assets, possible EGL UK investment, legacy issues and working capital. Underwriter is Bell Potter.

capital raising announcement

CEO Briens and COO/CFO Niemetz retired to run the European business, in which the company now holds just over 25%. Hempel becomes executive director; Moulin becomes non-executive chair. The company will stay listed, keep costs low and says its Buru royalties are not for sale.

director officer appointment

The selective buy-back approved on 17 July is complete: 221,615,657 shares were cancelled in exchange for one share in a UK subsidiary each. This leaves 75,656,848 shares on issue, down from 297m, and splits the European business from the listed company.

capital raising announcement

The Folschviller-2 gas flow test finished, and the company says it indicates its Lorraine coal bed methane projects are commercial without fracking. Beicip-Franlab's review supported commerciality. This resolves the long-running test thread; the company now focuses on a drilling campaign.

well test result

BeicipFranlab, the French Petroleum Institute's consulting arm, estimates net contingent gas resources in Lorraine and Nord-Pas de Calais at 4.62 Tcf (1C), 5.89 Tcf (2C) and 7.46 Tcf (3C). This is up from the earlier 2.7 Tcf Alsting figure; the company now aims to convert them to reserves by drilling.

resource reserve update

Frederic Briens is appointed CEO from 1 September 2011, filling the role vacant since Cockcroft resigned in April. He is a former BPZ Resources operating and strategy chief. This resolves the replacement CEO search.

director officer appointment

A long-term production test of the Folschviller 2 upper lateral is due to start around 5 September 2011, initially for three months. A 4-well exploration drilling program is expected from Q2 2012, with a CBM pilot project targeted for 2013. This follows the earlier planned test.

drilling scheduled

ASX says the trading suspension on European Gas shares will be lifted before trading begins on 7 June 2011. This closes the suspension open since November 2010.

listing compliance notice

EGL completed an A$15m placement of 33,372,752 shares at 45c to international institutions, a 10% discount to the 50c recent deals. Management says this funds the exploration program for 12 months and leaves capital for new projects. A request to lift the suspension will follow.

capital raising announcement

Production sharing agreement, effective 5 May 2011, gives EGL a 70% share of increased revenue from the Poissonnière and Désirée permits (766 km2) after it spends €1m over two years. Gazonor stays operator. This is the final piece of the Transcor restructuring terms.

material agreement

Farmout agreements let EGL earn 70% of the Valenciennois (432 km2) and Sud-Midi (929 km2) permits in northern France by spending €2.795m over about two years. EGL operates now. This follows the Transcor restructuring; the permits are held by Gazonor.

farm in farm out agreement

Transcor notes fully retired on 5 May 2011. Transcor takes 100% of Gazonor and EGL's 50% of the Benelux JV, subscribes 22m shares at A$0.50 and gets a 20m 50c option. EGL keeps 70% farm-in and production-sharing rights. Shares stay suspended.

business combination

Peter Cockcroft resigned immediately as CEO and Managing Director for personal reasons, about nine months after joining. He will advise the board, and a search for a replacement CEO begins.

director officer appointment

Agreement with Transcor to repay the €36.375m notes by transferring Gazonor to Transcor, issuing 22m shares (15m against the notes, 7m at A$0.50), granting a 20m-share option at 50c and a Benelux JV option. EGL gets 70% farm-ins in Gazonor permits. Subject to shareholder approval.

debt financing

Independent MHA study of the Alsting Anticline in Lorraine assessed contingent resources of 40 Bcf (C1), 2.35 Tcf (C2) and 7.91 Tcf (C3). It follows the October engagement of MHA; Folschviller 2 is planned for production testing in the first half of 2011.

resource reserve update

Transcor agreed to extend the convertible notes' maturity to 31 January 2011, with interest at 7% for that month and 90,000 shares to Transcor if a restructuring is signed. The shares have been suspended since 24 November 2010 and stay suspended during talks.

debt default or forbearance

Alvarez & Marsal's Paris office is hired to help evaluate options to restructure the balance sheet. This follows the ongoing talks over repaying or refinancing the Transcor Astra convertible notes, which mature at end of December 2010.

material agreement

France granted the 929 km2 Sud Midi exploration permit in Nord-Pas de Calais, 100% owned, for five years to July 2015 with a €1.9m spending commitment. It resolves a long-pending application and, with Valenciennois, forms a contiguous 1,352 km2 area beside Gazonor.

regulatory community update

Peter Cockcroft, chairman of Blue Energy, is appointed CEO and Managing Director, ending the search that began with acting MD Julien Moulin. Moulin becomes Chairman and keeps overseeing the balance sheet restructuring and relations with the French government.

director officer appointment

France renewed the Gardanne (365 km2, to Nov 2012) and Bleue Lorraine (262 km2, to Nov 2013) permits. This resolves the pending Gardanne renewal, which had been open since the Future Corp deal lapsed. Company says it controls or has applied for about 7,440 km2 in France.

regulatory community update

The company agreed to borrow A$2.5m interest-free, unsecured and subordinated to the convertible notes, repayable 31 March 2011. The lender gets 25m options at 18c (12c before 30 September 2010). Convertible note refinancing talks continue, with a possible MOU, and directors say issuing shares at current low prices is not appropriate.

debt financing

The Future Corp Gardanne Heads of Agreement lapsed after its conditions were not met by 31 December 2009. European Gas declined Future Corp's revised terms and will not pursue further talks. Gardanne permit renewal is still pending, and other joint venture parties are being approached.

material agreement termination

AGM presentation sets out a restructure: closing the Paris office, terminating two former executive directors, and targeting savings above €1.5m a year. It targets restructuring the convertible notes by 31 December 2009. Contingent resources are stated at 14,980 PJ.

investor presentation

The company identifies 2.3 Tcf of coal bed methane resources in the new Valenciennois permit, contingent on flowing at commercial rates, plus coal mine methane potential near Gazonor. This is an identified figure, not a certified resource booking. Exploration is planned for 2010-11.

resource reserve update

The French government granted the 423 km2 Valenciennois exploration permit, valid to September 2014 and renewable. It adjoins Gazonor and lifts the permit area there to 1,180 km2. This resolves one of the pending applications. Reserves and resources will be reviewed to include it.

regulatory community update

Managing Director Anthony McClure has ceased in the role. Termination terms with his company, Anthina Holding, are under negotiation. Director Julien Moulin becomes acting Managing Director until a replacement is found. This is a leadership change just weeks after the board was reshaped.

director officer appointment

Placement of 14.2m shares at A$0.17 to raise A$2.414m, to Maoming Fund, which rises from 14.30% to 19.98% once completed. Issued in two tranches, the second on 15 October 2009. No commission payable. Funds are for working capital and exploration.

capital raising announcement

European Gas signs a Heads of Agreement letting Future Corp earn 70% of Gardanne by spending €1.5m including one well, subject to permit renewal. Future Corp also gets first rights to Saint Etienne (70%) and Tuscany (51%). European Gas receives 130m Future Corp shares (8.1%, about A$1.2m) and options.

farm in farm out agreement

European Gas plans to resume Folschviller 2 production testing at Lorraine from October 2009, then drill at Jura and Gazonor, with seismic at Lorraine. It cites the A$10m finance facility. Results so far show the coals are tight, as anticipated. Text is truncated.

drilling scheduled

The company secured an A$10m equity line of credit with Yorkville Advisors. It may issue shares over 60 months at prices tied to the market price, with a 4% commission on each advance. Drawdowns would dilute holders. Cash was €2.3m at June.

capital raising announcement

The company signed a preliminary Heads of Agreement with Verdesis, a subsidiary of EDF Energies Nouvelles, giving exclusivity to November 2009 to seek a deal for electricity generation at Gazonor's Avion, Divion and Désirée sites. No commercial arrangement is guaranteed. It follows the June electricity study.

material agreement

A pre-feasibility study on electricity generation at four Gazonor sites finds a base case of up to 20 MW with capital cost of €16.5m. It puts NPV at €67.9m to €106.9m. The project depends on securing an electricity feed-in tariff, and third-party talks are in progress.

resource reserve update

Initial contingent resources of 3,552 PJ (95 Bm3) are added for the new Poissonniere Extension permit. Total Gazonor contingent resources rise 70% to 8,642 PJ (231 Bm3), up from 5,090 PJ. This delivers the resource estimate promised when the permit was granted.

resource reserve update

The French government granted the 188 km2 Poissonniere Extension production permit, valid to December 2017 and renewable. It sits next to Gazonor and lifts the company's production permit area there by 33%. This resolves the earlier application; a resource estimate is under way.

regulatory community update

Lorraine Sud adds 1,890 PJ (50 Bm3) of contingent resources, lifting the Lorraine Project total to 3,900 PJ (104 Bm3), almost double the 8 October figure. Lorraine Nord is excluded; MBA certification is still pending.

resource reserve update

Lorraine coal bed methane contingent resources are set at 2,010 PJ (54 Bm3), a 92% rise over the earlier 28.1 Bm3 gas-in-place estimate. It covers 260 km2 of the permit. This completes the Lorraine re-assessment; MBA certification is due in the December quarter.

resource reserve update

Initial coal bed methane contingent resources at Gazonor of 5,090 PJ (136 Bm3) are added, alongside the existing 140 PJ 2P reserves. This resolves the open CBM resource calculation; MBA Petroleum Consultants are to certify in the December quarter.

resource reserve update

Gazonor 1P reserves rise 50% to 49 PJ, with inaugural 2P of 140 PJ and 3P of 380 PJ, estimated by DMT on existing facilities only. This upgrades the 865 Mm3 1P figure held since the acquisition; coal bed methane resource work continues.

resource reserve update

Folschviller 2 appraisal well at Lorraine is spudded, planned to 1,400m measured depth with up to five 250m laterals to test three coal packets. It is expected to take about 60 days. It tests gas flow from coal, the next step after the 2006-07 coring and the 28.1 Bm3 gas-in-place estimate.

drilling spud

European Gas agrees a Benelux joint venture with Transcor Astra Group, 50/50 and operated by European Gas, to explore for coal bed methane, coal mine methane and conventional oil and gas in Belgium, Netherlands and Luxembourg. Transcor is already the convertible note holder.

joint venture update

Gazonor purchase completed on 28 December 2007 for €26.2m (A$43.7m), taking the company into production of about 40 Mm3 of methane a year. The €36.375m convertible notes (5%, convertible at €0.75) were funded by Transcor Astra. 1P reserves are 865 Mm3.

asset acquisition disposition

First Gas in Place estimate for the 100%-owned Gardanne project is 2,803 Mm3 (99.1 Bcf), calculated by DMT over about 40 km2. No permeability has been measured. Appraisal drilling is being planned for 2008, resolving the pending reservoir study.

resource reserve update

European Gas wins the tender to buy 100% of Gazonor S.A., a French coal mine methane producer, from a Charbonnages de France subsidiary for €26.2m (about A$42m). Completion is expected November 2007, subject to approvals. This is the asset the €36.375m convertible note funding was waiting on.

asset acquisition disposition

The French Government grants the Lons le Saunier permit, covering 3,740 km2 of the Jura Basin, for five years. Targets are coal bed methane, conventional gas and oil. This resolves the pending application and adds a new permit area.

asset acquisition disposition

European Gas agrees funding of €36.375m (about A$58m) via 3-year convertible notes at 5%, convertible at €0.75 (about A$1.20) into 48.5m shares. Notes are issued only if it buys European gas production assets, which are unnamed and not yet bid for.

debt financing

Through compulsory acquisition, European Gas issues 1,820,214 shares for the remaining Heritage shares, so Heritage is now a wholly owned subsidiary. A total of 31,509,298 new shares were issued for the offer. European Gas now holds 100% of Heritage's 25% Lorraine interest.

business combination

Diebling St1 is completed at 1,423m with 41.1m of net coal. Average gas content of 12.7 m3/t is 27% above the figure used in the resource estimate. A two-well production test is planned for mid-2007, plus seismic surveys.

drilling result

Heritage acceptances pass 90%, reaching 91.6% by 13 February. European Gas intends to compulsorily acquire the remaining Heritage shares on the same terms. Heritage had already withdrawn from PLUS Markets on 9 February.

business combination

The Heritage offer is declared unconditional with 84.1% accepted, or 86.9% including irrevocables. European Gas waived its 90% minimum. Heritage holders can still accept until 13 February, and Heritage will be delisted from PLUS Markets. Resolves the takeover conditions, with the ASX admission of new shares as the last step.

business combination

Final Western Australian approval is received for the sale of the Canning Basin permits (28,700 sq km) to ARC Energy. European Gas gets 1.5m ARC shares (about A$2.0m) and a 2% net well head royalty. This completes the pending sale and the Australian exit.

asset acquisition disposition

Firm recommended offer for Heritage Petroleum, European Gas's 25% Lorraine partner, valuing it at about £10.9 million, a 15.8% premium to the 11 October price. Holders of 68.5% have irrevocably undertaken to accept. This firms up the preliminary talks announced in October.

business combination

The French Government grants the 528 km2 Lorraine Sud permit for five years, renewable. It adjoins the Lorraine permit and lifts the Lorraine Basin holding to 988 km2. European Gas operates it at 75% with Heritage on 25%. This resolves the earlier application.

regulatory community update

European Gas is in early talks to acquire Heritage Petroleum, its 25% Lorraine partner, for 0.55 European Gas shares plus 1.5p cash per share (31.5m shares, £859,344 cash). Heritage directors holding 20.57% have undertaken to accept. Subject to due diligence; exclusivity runs to 31 Dec 2006.

business combination

Folschviller St1 completes at 1,306m with 62.41m net coal in six packets and average gas content of 9.42 m3/t. The well will be kept as an observation well; the rig moves to Diebling, starting end October. Company expects a resource upgrade from the sediments.

drilling result

Folschviller St1 intersects two more major coal packets (12.17m and 14.92m net), taking net coal to 51.93m at 1,186m, with strong gas readings throughout. The company says each of three major packets is thicker than expected. One more is expected before 1,300m.

drilling result

European Gas sells its Broome tank (120,000 barrels) and wharf pipeline to BP Australia and the Broome Port Authority for net $2.3 million. This continues the Western Australian divestment, alongside the pending ARC Energy sale.

asset acquisition disposition

Lab tests on Folschviller St1 coal give average gas content of 7.3 m3/t (Veine 8) and 9.6 m3/t (Veine 9). A second packet with 6.95m net coal was hit at 985m; net coal so far is 23.8m. Coal is described as dry.

drilling result

Folschviller St1 hits thick gassy coal: 13.46m net in Veine 9 and 3.45m in Veine 8, with strong gas readings to 882m. A shallower packet than expected, and the company says it is a development target. First positive result of the Lorraine program.

drilling result

European Gas sells its remaining 20% of Terratek (EP129, L6, L8) to Golden Dynasty for 8 million Golden Dynasty shares (about C$440,000), rather than fund further spending. It moves to a 3% well head royalty, keeps a 5% technology royalty; subject to TSX approval.

asset acquisition disposition

Folschviller St1, the first of two Lorraine core wells, has spudded, targeting coal from about 700m to a planned 1,300m. This starts the program flagged since April; the rig then moves to Diebling, with both wells taking ten to twelve weeks.

drilling spud

Scrubby #1 reached 1,250 metres and is being plugged and abandoned. Golden Dynasty is suspending its drilling program to remap prospects, after two wells in a row failed to find oil. European Gas's interest and royalties continue.

drilling result

Boundary SE-1 is plugged and abandoned at 1,710 metres after finding no commercially significant shows. This is a dry hole in a well funded by Golden Dynasty; European Gas keeps its 20% and royalties. The rig moves to Scrubby-1.

drilling result

European Gas agrees to sell most of its Canning Basin permits (28,700 sq km) to ARC Energy for 1.5 million ARC shares (about A$2.3 million) plus a 2% net well head royalty. This continues the Australian exit; the deal is subject to a definitive agreement and approvals.

asset acquisition disposition

European Gas agrees a placement of 21.0 million shares at $0.65 to raise A$13.65 million before costs, mainly from European institutions. Funds go to the European coal bed and coal mine methane projects, acquisitions and working capital.

capital raising announcement

Three coal bed methane permits covering 1,553 sq km in southern Tuscany, Italy, are granted, subject to environmental studies. European Gas can earn 75% (Heritage Petroleum keeps 25%) by funding reservoir studies capped at €200,000 per permit, and will operate.

asset acquisition disposition

Kimberley Oil NL becomes European Gas Limited (code KBO to EPG from 24 January 2006), shifting focus from the Canning Basin to French coal bed methane. Lorraine gas in place is 991.2 Bcf; core drilling is planned for first half 2006.

other