1 Feb 2007admin correction● Neutral
Re-release of the Heritage unconditional announcement, correcting the acceptance deadline dates to 13 February 2007. No change to the substance.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
23 Jan 2007other● Neutral
Oil Basins Limited reports taking a 35% interest in the Blina Back Reef play, Canning Basin, with an option on 15% more. It names European Gas as a possible royalty recipient. Not a European Gas announcement; it follows from the earlier Terratek sale.
18 Jan 2007well test result▲ Good
Gas analyses from Folschviller St1 show ethane at 1-3% of total gas near the top, rising to 10-15% at the bottom. Company says this should lift the gas's heating value, and quality is high with no deleterious components. Adds to earlier coal thickness and permeability results.
17 Jan 2007business combination▲ Good
Heritage acceptances reached 79.4% by the first closing date, or 81.6% including outstanding irrevocables. The offer, which needs 90% unless waived, is extended to 30 January 2007. Warrant holders are offered 0.55 European Gas options at A$1.00, expiring 28 February 2009.
16 Jan 2007other▲ Good
Shareholders approved both resolutions at the 16 January general meeting: the share and option issue for the Heritage offer, and new shares for director Alan Flavelle. Proxy votes were overwhelmingly in favour. This clears the shareholder approval needed for the Heritage deal.
16 Jan 2007drilling progress report▲ Good
Diebling St1 hit its first coal packet at 964.7m: 4.0m of coal averaging 10.87 m3/t gas, rated medium to high. A fractured zone caused total mud loss in late November and is being cemented; the well is at 1,030m. Three more coal packets are expected.
3 Jan 2007asset acquisition disposition● Neutral
ARC Energy re-releases European Gas's announcement of the completed Canning Basin sale, with its own managing director's comment. No new information for European Gas shareholders.
3 Jan 2007asset acquisition disposition▲ GoodMajor
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.
18 Dec 2006other● Neutral
A prospectus is lodged with ASIC so the Heritage offer can be made to Australian Heritage holders. It points to the offer documents for the terms and adds no new figures. Administrative step in the Heritage takeover.
15 Dec 2006business combination● Neutral
Offer documents for the Heritage Petroleum takeover are sent to Heritage holders. The offer is open until 16 January 2007 and the new European Gas shares will be ASX-quoted once the offer goes unconditional. This is the formal paperwork for the offer announced on 15 December.
15 Dec 2006regulatory community update● Neutral
ASX waiver lets European Gas issue the Heritage acquisition shares and options later than the usual listing-rule deadlines, provided they are issued on completion and by 30 June 2007 at the latest. An administrative approval supporting the Heritage deal.
15 Dec 2006business combination▲ GoodMajor
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.
8 Dec 2006regulatory community update▲ GoodMajor
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.
5 Dec 2006drilling progress report● Neutral
Diebling St1 is at 946m, with the top of the target coal-bearing units hit at about 880m as predicted. Casing is set and coring has begun to 1,500m, taking about four weeks. No coal or gas results yet.
28 Nov 2006investor presentation● Neutral
AGM presentation restates the Lorraine story and the 28.1 Bm3 gas in place. Shares on issue 166,646,364, price A$0.77, market cap about A$128 million. Diebling St1 is at 859m with coring to start shortly.
2 Nov 2006drilling spud● Neutral
Diebling St1, the second Lorraine core well, has spudded, as flagged since October. Target depth is 1,500m, with net coal expected over 30m below 900m. Appraisal drilling is planned for the first half of 2007.
24 Oct 2006annual report● Neutral
Full 2006 annual report for the year to 30 June 2006, following the extract summarised on 2 October. Chairman's report repeats the Lorraine progress and the Australian divestment 'shortly'. Financial statements are not in the extract provided.
23 Oct 2006well test result▲ Good
Lab tests on Folschviller St1 cores show coal permeability up to 2.80 mD, higher than expected, suggesting sustainable gas flows from lateral wells. This adds to the earlier thick-coal and gas-content results; more detailed testing continues over two months.
16 Oct 2006other● Neutral
Oil Basins Limited (OBL) announces its farm-in to the Blina Back Reef play in the Canning Basin, run by Terratek (now owned by Golden Dynasty). This is not a European Gas announcement; it only follows from European Gas's earlier Terratek sale.
12 Oct 2006business combination▲ GoodMajor
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.
9 Oct 2006drilling result▲ GoodMajor
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.
2 Oct 2006annual report● Neutral
Annual report for the year to 30 June 2006, the first as European Gas. The chairman describes a successful year and says Australian divestment will finish shortly. Financial figures are not in the extract provided.
29 Sept 2006drilling result▲ GoodMajor
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.
28 Sept 2006asset acquisition disposition▲ GoodMajor
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.
18 Sept 2006drilling result▲ GoodMajor
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.
12 Sept 2006drilling result▲ GoodMajor
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.
8 Sept 2006asset acquisition disposition● NeutralMajor
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.
30 Aug 2006drilling progress report● Neutral
Folschviller St1 is at 741m, having reached the top of the target coal-bearing units at 705m as predicted. Casing is being set before coring begins to 1,300m. No gas or coal results yet.
7 Aug 2006drilling spud● NeutralMajor
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.
11 July 2006drilling scheduled▲ Good
Approvals, landholder agreements and the drilling contract are finalised for the 75%-owned Lorraine project. Two core wells (Folschviller to 1,300m, Diebling to 1,500m) start the week of 24 July, budgeted at €2.8 million, 75% funded by European Gas.