Past year: ▲ 88%(15.5c – 32.0c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
31 Mar 2010debt financing▼ BadMajor
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.
17 Mar 2010half year report▼ Bad
Half-year to 31 December 2009 loss was €3,941,459, against €3,483,245 a year earlier. Gazonor sold 117,273 MWh over the half. Gas pricing from March 2010 is expected to average about €15.40/MWh under the renewed Total contract. Text is truncated.
11 Mar 2010well test result● Neutral
Folschviller 2 testing with both laterals open showed the upper seam could be economic with laterals over 600m. The lower seam has natural fractures but is water saturated, and no gas flow has been achieved yet. The company is now ranking other Lorraine drilling locations.
9 Feb 2010director officer appointment● Neutral
Gauthier De Potter, the nominee director of Transcor Astra (the convertible note holder and Benelux JV partner), resigned from the board. He held no securities. The board is now three: Moulin, Bresnehan and Hempel.
3 Feb 2010material agreement termination▼ BadMajor
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.
29 Jan 2010quarterly activities report● Neutral
December quarter: Gazonor sold 89,505 MWh at about €16.50, revenue about €1.5m, up from 27,768 MWh in September on cooler weather. Folschviller 2 workover completed on time. Gardanne conditions with Future Corp were not met by 31 December. Text is truncated.
29 Jan 2010quarterly activities report● Neutral
December quarter cash rose to €1.183m from €920k, as €1.472m of financing receipts outweighed a €1.123m operating outflow. The A$10m Yorkville facility remained undrawn, and estimated outflows for next quarter were €350k.
5 Jan 2010farm in farm out agreement▼ Bad
Future Corp (the Gardanne farm-in partner) says the 31 December 2009 Gardanne permit renewal deadline passed and it is seeking amended terms. It cannot estimate timing or likelihood of success. It also bought into a Louisiana oil project, which this announcement describes as non-core.
30 Dec 2009director officer appointment● Neutral
Eric Allen, consultant since July 2008, becomes full-time Chief Technology Officer, and Nicolas Ricquart becomes a Gazonor director. The search for an Executive General Manager or CEO continues, with Moulin acting MD until 30 June 2010; a board management committee is set up.
18 Dec 2009drilling progress report● Neutral
Upper-seam flow test at Folschviller 2 finished on schedule; permeability is low, but long laterals may reach economic production without stimulation. Lower-seam workover is on schedule. The company says Lorraine contingent resources are 'a step closer' to development, though no gas rates are reported.
23 Nov 2009well test result▲ Good
The upper-seam water flow test at Folschviller 2 finished on schedule, averaging about 12 m3/d of water. Gas appeared in the casing when pressure fell below 30 bar, showing the desorption pressure was reached. The lower-seam test depends on rig release, scheduled for early December.
17 Nov 2009agm notice● Neutral
All six AGM resolutions passed on a show of hands, including adoption of the remuneration report and re-election of directors De Potter, Moulin, Bresnehan and Hempel. Administrative outcome only.
16 Nov 2009investor presentation● NeutralMajor
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.
11 Nov 2009resource reserve update▲ GoodMajor
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.
10 Nov 2009drilling progress report● Neutral
Testing resumes at Folschviller 2 in Lorraine after a workover rig was secured. The pump is dewatering the first lateral. Single-phase flow tests on the seams will come first, with a separate gas production test later. No gas rates yet.
30 Oct 2009quarterly activities report▼ Bad
September quarter: Gazonor sold 27,768 MWh at €14.24/MWh, revenue about €0.4m, down from 81,031 MWh in June on seasonal factors and maintenance. Shares on issue are 213.9m. Lorraine well testing restarts, and a strategic and organisational review is under way.
29 Oct 2009regulatory community update▲ GoodMajor
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.
26 Oct 2009director officer appointment● NeutralMajor
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.
20 Oct 2009annual report● Neutral
The 2009 annual report highlights 2P reserves of 140 PJ at Gazonor, contingent resources of 12,500 PJ and gas sales of 333,734 MWh. The managing director calls the year challenging but says assets were protected. It largely restates known facts. Text is truncated.
30 Sept 2009annual report▼ Bad
Full-year to 30 June 2009 loss was €5,545,254, up from €3,756,513 the year before. Subsequent events confirm board changes (Willsteed and Flavelle resigned), the Yorkville facility, the Verdesis agreement, the Future Corp joint venture and the Maoming placement. Text is truncated.
29 Sept 2009capital raising announcement▲ GoodMajor
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.
What it means for a shareholder
14.2m new shares at A$0.170 to raise about A$2.4m. That's 23% dilution: every existing holder's slice gets 23% smaller. If you held A$1,000 of shares (5,882 at the issue price), your slice goes from 0.0121% to 0.00938% of the company. To keep it you'd need 1,722 more shares - about A$293 at the issue price.
Create a free account to see this worked out for your own holding.
8 Sept 2009farm in farm out agreement▲ GoodMajor
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.
8 Sept 2009farm in farm out agreement▲ Good
Future Corporation Australia (ASX: FUT), the counterparty, announces a conditional Heads of Agreement to farm into European Gas's Gardanne project (70%), with options on Saint Etienne and Tuscany. This is the same deal European Gas announced; it adds Gardanne gas in place of 105 PJ and drilling from Feb/Mar 2010.
2 Sept 2009director officer appointment● Neutral
Julien Moulin (Maoming Investment Manager), Rod Bresnehan (reservoir engineer) and Sebastian Hempel (corporate lawyer) join as non-executive directors. Executive director Alan Flavelle, a director since July 2000, resigns from the board and plans to retire as an executive at the November 2009 AGM.
19 Aug 2009drilling scheduled▲ GoodMajor
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.
17 Aug 2009capital raising announcement● NeutralMajor
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.
3 Aug 2009material agreement▲ GoodMajor
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.
31 July 2009quarterly activities report● Neutral
June quarter: Gazonor sold 81,031 MWh at €15.35/MWh for €1.2m revenue. Cash fell to €2.3m, from €3.15m at March. The report restates the electricity pre-feasibility study and says third-party talks continue.
6 July 2009price query● Neutral
ASX queried the rise in the share price from 11 cents on 29 June to a high of 18.5 cents on 3 July, with higher trading volume. It asked whether the company has undisclosed information. This is only the query; the reply is not included.
26 June 2009security holder rights change● Neutral
1.5m unlisted employee options lapsed under their terms, leaving 9.5m unlisted options on issue. They have exercise prices of $1.50 and $2.50 and expire between 2010 and 2012. Administrative only.
