4 Sept 2014other● Neutral
Quarterly tenement list: SC 44 at 100% with extension to 28 January 2015, and St Griede at 100% under renewal application. No tenements acquired or disposed of in the June quarter.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
31 July 2014quarterly activities report▼ BadMajor
June quarter report: the Malolos-1 test sustained 33 bopd and briefly about 200 bopd, with perforations repeatedly blocked by fines. Sufficient data gathered for a DOE application lodged in July. The rights issue was withdrawn on 12 June due to low acceptances, with the share price below the 3 cent issue price.
29 July 2014joint venture update● Neutral
Malolos-1 is shut in overnight, building 100-220 psi, then gas is flared daily, with some oil produced under natural pressure. The company has met the DOE and applied for more time under SC 44. It will seek a farminee to fund appraisal.
8 July 2014well test result● NeutralMajor
Both Malolos sandstones were tested separately and are oil-bearing. The lower one made over 100 bopd with more water, and fines limit rates. Malolos-1 is suspended while the company applies to the DOE for more time. Seismic is planned and a farminee is sought.
17 June 2014well test result● Neutral
After high-pressure water jetting, Malolos-1 sustained 33 barrels of oil per day. The company says the well has previously made about 200 bopd only briefly. If rates decline it may do more remedial work or suspend testing.
4 June 2014well test result● Neutral
After the acid wash, sand and clay again partly plugged the Malolos-1 perforations, cutting the influx rate. The company says the short burst indicates about 200 bopd is possible if unblocked, in line with the 2013 testing. Testing continues.
30 May 2014well test result● Neutral
An acid wash to clear the clogged Malolos-1 perforations improved fluid influx, with 8 barrels in one hour, and oil was recovered. Flow has not stabilised, and further remediation may be needed for continuous production.
19 May 2014well test result● Neutral
Swabbing at Malolos-1 reached almost 100% oil, confirming the tested sandstones are oil reservoirs. But clay fines have clogged the perforations, and remedial work is under way before testing resumes. This is a setback to the production test.
14 May 2014capital raising announcement● Neutral
Rights issue closing date extended again, from 23 May to 13 June 2014, with issue now 20 June. Terms are unchanged: 1-for-4 at 3 cents, about $5.1m. This is the second extension and the text gives no reason.
13 May 2014drilling progress report▲ Good
Swabbing at Malolos-1 continues with the oil percentage rising. Gas is breaking out of the oil, with 95 psi wellhead pressure and a 35-minute flare. An initial oil rate is still several days away.
12 May 2014well test result▲ Good
Swabbing began over the weekend at Malolos-1 and oil has reached surface, though much of the fluid is still drill water. An initial oil rate is still several days away. This is the first oil from the extended test of the 20.4 MMbbl (2C) field.
9 May 2014drilling progress report● Neutral
Packer and completion assembly are set above the upper oil sandstone at Malolos-1. The swabbing unit is being set up, and oil production testing will likely start over the weekend. No test results yet.
5 May 2014drilling progress report● Neutral
Rig-2 has begun Malolos-1 operations and cleaned out the two cement plugs. Next the packer and completion assembly will be run, then swabbing and oil production testing. The 'before end of April' test start has slipped into May.
24 Apr 2014capital raising announcement● Neutral
Rights issue closing date extended from 5 May to 23 May 2014, with issue of shares and options now expected 30 May. Terms unchanged: 3 cents per share, about $5.1m. The text gives no reason for the delay.
23 Apr 2014drilling progress report● Neutral
Rig-2 was set to start Malolos-1 operations on 24 April, and the swabbing unit, acquired under a lease/purchase agreement, was already on site. Initial oil testing was still scheduled to begin before the end of April.
16 Apr 2014admin correction● Neutral
Notice that the rights issue prospectus and acceptance form were mailed to eligible shareholders on 16 April. No new information.
11 Apr 2014drilling progress report● Neutral
A crew is mobilised to Malolos-1 to prepare Rig-2. Well clean-out starts next week, then about two weeks of swabbing one sandstone, then a shut-in. Each of the two sandstones is to be tested in turn, and test oil will be sold in Cebu.
2 Apr 2014capital raising announcement● NeutralMajor
Launches a 1-for-4 non-renounceable rights issue at 3 cents to raise about $5.1m, with a free $0.04 option (expiring 15 September 2015) per share. Not underwritten. Funds go to Philippines appraisal, French exploration and working capital. Shares would reach about 927m.
2 Apr 2014capital raising announcement● Neutral
Prospectus for the 1-for-4 rights issue at 3 cents (about $5.1m), with a free option per share. The supplied text covers only the front sections and key dates; it repeats the terms announced the same day.
20 Mar 2014regulatory community update▲ GoodMajor
The Philippine energy department gave written approval to start the Malolos-1 extended oil production test, with initial production likely in April. This clears the approval awaited since January. A 25-year production period depends on proving commerciality.
19 Mar 2014production update● Neutral
Malolos-1 extended production test slips from February to April; DOE written approval expected by end of March. Company says the test is funded from existing cash. Farm-out talks continue, and it may fund some work itself if they drag.
21 Feb 2014half year report● Neutral
Half-year report to 31 December 2013 largely repeats known operational news: the DOE discovery recognition, SC44 extension to January 2015, the January resource upgrades and the roughly $1.8m placement. Financial statements are not visible in the provided text.
29 Jan 2014resource reserve update▲ GoodMajor
Independent assessment lifts the Malolos contingent resource (2C) to 20.4 MMbbl oil in place from 12 MMbbl (1C 6.8, 3C 68.1). It also adds a new unrisked prospective resource of 104 MMbbl (14-601) in SC44 leads. Farm-out talks continue; no deal yet.
3 Jan 2014regulatory community update▲ GoodMajor
The Philippine energy department formally recognised Malolos-1 as an oil discovery and extended SC44 for 12 months from 28 January 2014 to prove commerciality. This resolves the October application. Longer testing is planned for February, costing US$0.5-1m, subject to equipment.
22 Nov 2013investor presentation● Neutral
AGM presentation repeats known facts: the 4-12-42 MMbbl Malolos resource, the planned production test, farm-out to fund appraisal, French licences and the company-owned rigs. It states management owns about 32%.
12 Nov 2013regulatory community update● Neutral
Typhoon Haiyan caused no damage to SC44 sites or the company-owned rigs, which are about 150 km south of its path. The Malolos-1 extended test still awaits government approval, expected early 2014. Farm-out talks continue.
23 Oct 2013regulatory community update▲ GoodMajor
Company applied to the Philippine energy department to declare Malolos-1 an oil discovery, citing indicative test rates of 100-200 barrels a day. If approved, that gives 12 more months to test. Extended testing is estimated at US$500,000-$1m; farm-out of SC44 is still being discussed.
25 Sept 2013annual report● Neutral
2013 annual report: Malolos-1 oil discovery with 12 MMbbl best-estimate resource, dry Jacob-1 and Gumamela-1, Ilang-1 deferred. $3.9m raised in the year plus $1.625m in September 2013. Directors provide loan facilities. Company is seeking a farm-in partner to fund Malolos.
17 Sept 2013admin correction● Neutral
Administrative section 708 notice for the 73,884,546 shares issued in the September placement. No new information.
11 Sept 2013capital raising announcement● NeutralMajor
Placement raised $1,625,460 from 73.88m shares at 2.2 cents, a 20.8% discount to the 15-day average. That is below the 3 cent plan price. Funds go to Malolos-1 flow testing, St Griede and working capital. Company says it is talking to potential farm-in partners.
What it means for a shareholder
73.9m new shares at A$0.022 to raise about A$1.6m. That's 11% dilution: every existing holder's slice gets 11% smaller. If you held A$1,000 of shares (45,455 at the issue price), your slice goes from 0.00774% to 0.00687% of the company. To keep it you'd need 5,718 more shares - about A$126 at the issue price.
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