31 Dec 2010other● Neutral
Securities trading policy document setting insider-trading rules and closed periods for directors and staff. It contains no new company information or financial change.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
17 Dec 2010debt default or forbearance● NeutralMajor
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.
24 Nov 2010material agreement● NeutralMajor
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.
27 Oct 2010annual report● Neutral
2010 Annual Report: Cockcroft calls it a year of transition and aims to raise reserves and add three new exploration areas, including outside France. Sud Midi and Bleue Lorraine are shown as granted. Italy and Belgium applications remain pending. Text is truncated.
7 Oct 2010contract award● Neutral
MHA Petroleum Consultants of Denver is hired to study the French coalbed methane and shale gas assets, giving an independent resource estimate and updated reserves status. This follows the Gazonor reserves dating from July 2008 and Lorraine contingent resources from March 2009.
30 Sept 2010annual report▼ Bad
Year to 30 June 2010 loss was €7,215,770, against €5,545,254 the prior year. Swept up in the subsequent events: Cockcroft appointed MD, and 25m options exercised at 12c in September 2010. Text is truncated.
25 Aug 2010auditor change● Neutral
Auditor changes from PKF to Deloitte following a PKF practice merger. The board approved it, and shareholders will consider it at the November AGM.
26 July 2010regulatory community update▲ GoodMajor
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.
9 July 2010remuneration report● Neutral
Cockcroft's two-year contract from 15 July 2010 pays US$200,000 a year to December 2010, then at least US$300,000. He is also proposed 14.5m options at A$0.35, A$0.50 and A$0.70, subject to shareholder approval.
7 July 2010director officer appointment▲ GoodMajor
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.
21 May 2010regulatory community update▲ GoodMajor
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.
13 Apr 2010security holder rights change● Neutral
The 25m unlisted options issued to the lender of the A$2.5m loan, as announced on 31 March. They expire 31 March 2011, with an exercise price of 18c, or 12c if exercised before 30 September 2010. Administrative follow-up with an Appendix 3B.
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.
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.
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.
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.