Grand Gulf Energy Ltd

Grand Gulf lodged a nomination with Utah's land trust (SITLA) for about 5,280 acres extending the Red Helium Project, following the April review; it enters SITLA's lease auction, so award is not assured. The earlier Other Business Arrangement term has ended.

asset acquisition disposition

Patrick Burke, with critical minerals and ASX chair experience, appointed Non-Executive Chairman with 50m options at 0.5c expiring Feb 2029. Keith Martens resigned as chairman but stays as a consultant overseeing Red Helium.

director officer appointment

Placement completed 9 Feb 2026: A$500,000 raised from 250m shares at 0.2c. A further 50m shares at 0.2c (A$50,000 equivalent) issued to advisers for facilitating the Dry Wash acquisition. Another thin, heavily dilutive raise after the 0.4c placement in 2024.

capital raising announcement

Secured the 8,122-acre Dry Wash Antimony Project in Utah via an option-to-lease agreement with SITLA, adjacent to AT4's Antimony Canyon. A new critical minerals direction beyond helium and oil. The 3 Feb raising is detailed separately; no drilling yet.

asset acquisition disposition

Non-binding MoU with Sage Potash to share 3D seismic costs 50/50 at Red Helium, and assess a joint helium and potash well and shared infrastructure. It follows the earlier non-binding Sage heads of agreement; no binding terms or funding yet.

material agreement

Binding option to buy 100% of Wrangel Pty Ltd, applicant for a 70% interest in Block 2312, offshore Namibia (about 16,800 sq km). Payment is due only if the licence is granted. A prior operator reported 1.1bn barrels of mean prospective resource, so this is a new oil direction beyond helium.

asset acquisition disposition

Managing Director Dane Lance, who has led the company since February 2022, resigned and serves three months' notice. Chairman Martens and director Kiley take acting executive duties while a search runs. Yann Cherruau joins as non-executive director from 31 October 2024.

director officer appointment

Rights issue closed 17 September 2024 with applications for 80.5m shares (A$321,881) plus 24.7m shortfall shares (A$98,679), about A$0.42m of up to A$1.05m. Remaining shortfall of 156.8m shares may be placed within three months.

capital raising announcement

Grand Gulf raised A$1.0m via a placement of 250m shares at 0.4c with one free option per four shares. It also launched a 1-for-8 rights issue at 0.4c to raise up to about A$1.05m, for the Red Helium project and working capital. The price is half the August 2023 raise of 0.8c.

capital raising announcement

Utah regulators approved the Jesse-3 drill permit, which was pending since 2023; the well will case and perforate the full section to test deeper zones. The company is in farm-out talks to fund drilling, with no guarantee of a deal.

regulatory community update

Grand Gulf signed a gas sales and processing agreement with Green Natural Gas, new owner of the Lisbon helium plant 20 miles north. It gives a route to sell any successful well's gas, replacing the earlier Paradox offtake. Terms include a revenue split favouring the producer; no wells have yet produced.

material agreement

Grand Gulf's working interest in the Red Helium project rises 5.5% to 83%, earned through exploration and appraisal work under the operating agreement with Four Corners Helium. It can earn a further 7.5% by funding the first US$1.5m of a third well.

joint venture update

Fergus Kiley, a former Wyloo business development lead and now at Nico Resources, joins as non-executive director. Technical Director Keith Martens becomes Chairman, replacing Craig Burton, who resigned citing other work commitments.

director officer appointment

Jesse-1A flowed about 1 million cubic feet of raw gas a day (peak 0.95 mmcfd), but with heavy water of 1,200-2,000 barrels a day, which the company links to partial isolation. A sidetrack is planned. This release said 'early 2023'; corrected the next day.

flow test result

Preliminary swabbing at Jesse-1A unexpectedly flowed gas to surface, latest sample 0.78% helium versus 1% in the 2022 downhole sample. Isolation and full flow-test follow. Management says production could start within six months if the test succeeds; that is its view, not a result.

flow test result

Grand Gulf raised A$3.2m via a placement of 400m shares at 0.8c, with one free option per four shares (2.5c, 3 years), to fund Jesse-3 and Jesse-1A work. Far below the 2.2c March placement. Tranche 2 (208m shares) needs shareholder approval.

capital raising announcement

Valence signed a Surface Land Use Agreement for the Jesse-3 well-pad, keeping the Q4 2023 spud on track. Grand Gulf also received a non-binding farm-in proposal from an unnamed US oil and gas company for Red Helium; no binding deal is guaranteed.

joint venture update

Valence signed a non-binding heads of agreement with TSX-V-listed Sage Potash. Sage would contribute the greater of US$1m or one third of shared costs to Jesse-3, in return for a potash core, with a 50/50 split on a later 3D seismic survey. It depends on due diligence and approvals.

material agreement

Sproule-reviewed estimate adds a McCracken gross P50 prospective helium resource of 1.8 BCF (1.3 BCF net to Valence), lifting the project total to 12.7 BCF from 10.9 BCF. These are unrisked, undiscovered volumes, with Jesse-3 positioned to test them.

resource reserve update

Jesse-2 reached total depth with a 192 ft gross gas column, flowing gas to surface at up to 0.9% helium with no water, confirming the Jesse discovery. But only 23 ft net pay and lower secondary porosity than Jesse-1A; well suspended. Valence interest rises to 77.5%.

drilling result

Placement of 113.6m shares at 2.2c raises A$2.5m, with 1-for-2 attaching options at 5c for 3 years plus 28.4m options to lead managers Euroz Hartleys and CPS. Funds are for working capital and long-lead production equipment, if Jesse-2 succeeds. Jesse-2 is drilling the intermediate section.

capital raising announcement

Jesse-2 helium well spudded on 14 March 2023, two days after the 12 March target. Aim is 8,150 ft in the Leadville Dolomite, about a month of drilling. This is the second well under the Valence earn-in, following the Jesse-1A discovery.

drilling spud

The Paradox gas sales and processing agreement, first signed March 2022, now covers Jesse-2. Terms stay at an 80/20 revenue split favouring Grand Gulf, plus standard tariffs. It gives a route to sales only if the well succeeds.

material agreement

Utah regulator approved the permit to drill Jesse-2, 1.5 miles from the Jesse-1A discovery. Spud is targeted for Q1 2023, in line with the earlier late Q4/early Q1 guidance. It will stay above the gas/water contact, using managed pressure drilling.

regulatory community update

Jesse#1A flow test: helium grade averaged 0.8% (earlier 0.44-0.65%) and reservoir pressure 2,465 psi. Sproule says discovered status allows reclassifying prospective to contingent resource, but water ingress stopped stable gas flow, so no flow rate was measured. Second well planned Q4 2022.

flow test result

Grand Gulf lifted its stake in Valence Resources, which operates the Red Helium project, from 55% to 70% after contributing the first US$1.5m for the first well. It can reach 85% by funding US$1.5m on each of two more wells. Work-over is on schedule for mid-August.

farm in farm out completion

Jesse#1A flow-back sampled 0.44-0.65% helium, with CO2 of 59-65% (below the 85% expected) and reservoir pressure of 2,280 psia. The company declares a helium discovery, but water ingress meant the well could not flow stably. The rig was released and a re-entry is planned for early to mid Q3.

well test result

Jesse#1A reached total depth, with logs indicating a 203 ft gross gas column in dolomitised Leadville reservoir, similar to nearby Doe Canyon producers. Flow testing is the real test of discovery and a workover rig is about two weeks away.

drilling result

Jesse#1A, the maiden helium well at Red Helium, spudded on 24 April 2022 using Aztec rig 980. It is drilling to a planned 8,500 ft in the Leadville Dolomite, about a month. Resolves the spud thread; the result is still unknown.

drilling spud

GGE raised A$11m via a placement of 250m shares at 4.4c, with one free option per three shares (83.3m options at 8c, 3 years, needing shareholder approval). Funds at least two wells. Well redesigned as Jesse#1A at about US$3.3m, spud late April.

capital raising announcement

Utah regulators approved the drilling permit for Jesse#1, with spud planned for 15 April 2022 or earlier. Resolves the pending permit thread, which was expected 60 to 90 days after the February application.

regulatory community update

Gas Sales & Processing Agreement signed with Paradox Resources for its Lisbon plant, 20 miles from Red Helium. GGE gets 80% of revenue, less standard tariffs, if Jesse#1 succeeds. Resolves the open offtake thread. OTCQB listing also planned in coming weeks.

material agreement

Dane Lance, a reservoir engineer with 16 years' experience (Woodside, Ophir, Oil Search), became Managing Director on 23 February 2022. Keith Martens moves to Technical Director. Lance's package is $247,500 a year initially, plus performance rights and 10m options at 7c, subject to shareholder approval.

director officer appointment

GGE agreed to buy another 30% of Valence, lifting its stake to 55% with the right to earn up to 85% by drilling three US$1.5m wells. Price is 90.4m escrowed shares plus A$400,000. GGE's net P50 resource rises to 6.3 BCF.

asset acquisition disposition

Independent consultant Sproule gave the Red Helium Project a maiden P50 prospective resource of 10.9 BCF gross to Valence (7.4 BCF net); whole-project P50 is 20.8 BCF. Resolves the pending resource estimate; it is unrisked and undrilled. First well now targeted late Q1 2022.

resource reserve update

GGE completed the Kessel acquisition after shareholder approval on 11 October, issuing 450m shares and 100m performance shares to vendors. It also placed 235m shares at 1 cent (A$2.35m). Total shares now 1,183.5m; Keith Martens leads as CEO.

business combination

GGE signed a binding deal to buy 100% of Kessel Resources, which holds an interest in the Red Helium Project in Utah, with a A$3.3m raise to fund it. A major strategy shift from oil to helium; Keith Martens to become CEO.

business combination

GGE dispatched the Whitebark distribution: 383,749,392 WBE shares, worth 0.25c per GGE share at the 0.5c subscription price. 8.86m go to be sold for ineligible foreign holders; GGE keeps 6.25m. Options at 0.8c now exercise at 0.55c. Completes the return of value begun in March.

capital raising announcement

GGE completed its A$1.95m subscription for 390m Whitebark shares at 0.5c. Distribution to GGE holders (1 per 2 GGE shares, about 383.75m shares) slipped from 22 to 28 May 2019 because of fund transfer delays; record date unchanged. Resolves the suspension.

capital raising announcement

GGE's securities were suspended at its own request pending an announcement on the WBE share subscription and a revised timetable for the in-specie distribution, which shareholders approved on 10 May 2019. Suspension runs until the announcement or 16 May. Suggests the timetable has changed (inference).

listing compliance notice

GGE will subscribe A$1.95m for 390m Whitebark Energy shares at 0.5c, then give 383.75m to its shareholders in-specie, one WBE share per two GGE shares (0.25c per GGE share). Needs shareholder approvals. Signals a return of value while seeking a bigger project.

capital raising announcement

Craig Burton (chairman) and Chris Bath join the board. Chairman Charles Morgan, Stephen Keenihan and Allan Boss step down. Burton's entities hold about 186m GGE shares, per the director interest notice. A major board change; Mark Freeman stays as managing director.

director officer appointment

GGE signed a binding agreement with PetroStone to buy a 36.5% interest in 355 gross acres in the Wattenberg Field, DJ Basin, Colorado, for about US$760,000. It must fund two wells, estimated at US$685k-2.75m. This adds a second US shale position after Eagle Ford.

asset acquisition disposition

March quarter: sales A$948k, cash A$1.4m. GGE elected to withdraw from Pleasant Home effective 23 April 2018, ending the earn-in begun in October 2016. Bayou La Rompe's spud has been delayed pending resolution among participants; Eagle Ford marketing for a drilling operator has begun.

quarterly activities report

GGE secured 881 net acres of 1,075 gross acres (440 net to GGE) in Burleson County, Texas Eagle Ford, in a 50/50 JV with a private Texas company. About US$550,000 spent on leases; wells cost US$4.5m each, and GGE plans to farm down. A move into unconventional onshore Texas.

asset acquisition disposition

GGE farmed in for a 20% interest in the Bayou La Rompe oil prospect in St Martins Parish, Louisiana, with P50 reserves of 540,000 bbl oil and 1.6 BCF. Its share of costs is US$440,000 to drill and US$400,000 to complete if successful. Spud is expected in Q4 2017.

farm in farm out agreement

Boleslaw #1 reached 1,550m on 10 January 2017 and found no commercial recoverable hydrocarbons; it will be plugged and abandoned. This ends the Poland gas thread, with GGE's 20.4% share costing about A$2.8m gross. Partners will review Kolo, including an oil target.

drilling result

GGE acquired a 20.4% interest in the Kolo Licence in Poland and the Boleslaw #1 gas well, which spud 11 December targeting 87 BCF of unrisked prospective resource. It pays A$600,000; the well is expected to cost A$2.8m. Chairman Morgan and director Keenihan have interests in a seller, Hutton Energy.

farm in farm out agreement

Reserves update at 30 June 2016: net 2P reserves of 231,000 bbl oil and 459 mmcf gas. Desiree oil fell because of water production. It also corrects an error in the annual report's West Klondike contingent resources, which were overstated.

resource reserve update

GGE agreed to earn a 50% interest in the Pleasant Home Field, Alabama, by recompleting two wells with potential net recovery of up to 100,000 bbl each. Entry costs are US$50,000 plus A$100,000 of shares at A$0.005, and GGE funds the first US$350,000 of recompletion costs.

asset acquisition disposition

June quarter: GGE confirms it will no longer pursue the demerger after adverse ATO advice, ending that thread. It is again marketing Napoleonville seismic to new partners and looking at buying producing assets. Cash A$3.2m; Desiree proved reserves 189,000 bbl net.

quarterly activities report

GGE withdrew its ATO ruling applications for the shareholder-approved demerger and is assessing options. This effectively stalls the plan announced in December 2015; the preferred approach will be confirmed later.

other

Arbitrator rejected the former partner's claim to a 5.3% interest in Desiree, confirming GGE's full 39.6%. This resolves the dispute running since 2014 and removes a significant ownership uncertainty over its main producing field.

regulatory community update

Board proposes demerging most US assets, all except Abita, into new Louisiana Oil Ltd, distributed to shareholders 1 share per 10 held (~74.8m shares, book value A$19.08m). Louisiana Oil would cut costs and pay out income; GGE would pursue new opportunities. Needs shareholder and ATO approval.

business combination

September quarter: sales A$1.65m, cash A$1.3m, receivables A$1.6m including a A$1,017,168 insurance payout. GGE now says a Yellowfin farm-out is unlikely near term because of low oil prices and has stopped spending on it, reversing the earlier farm-out push.

quarterly activities report

GGE settled the purchase of the Napoleonville interests (3.99% of Desiree, 15.3% of D&L #3) for US$575,000, net cash US$374,500 after revenue since 1 November 2014. This completes the deal announced 2 December, lifting Desiree to 39.6%.

farm in farm out completion

GGE presented its new Yellowfin prospect (Napoleonville, 100% WI, 8,000 acres) at the NAPE conference, with most likely potential of 1.4 TCF, next to Freeport McMoRan's Highlander discovery. It is being marketed to industry, and the test well would go to 27,900 ft. This is an unproven prospect.

drilling scheduled

GGE reached a full and final settlement with the D&L #1 blowout personal-injury plaintiffs, expected to be covered by insurance. Any remediation exposure beyond insurance was put at no more than US$250,000, and D&L #3 began disposing of water into D&L #2, saving about US$25,000 a month.

regulatory community update

GGE signs a heads of agreement to buy OGI's Napoleonville interests for US$575,000, lifting Desiree to 39.6% and D&L #3 to 55.3%, plus OGI's 18% of Fausse Point with ~US$100,000 of plugging obligations. Needs OGI shareholder approval, expected January 2015. Reserves table shows 371 MBBL net proved.

asset acquisition disposition

OGI (seller) says it will sell subsidiary Birdwood Louisiana, holding 3.99% of Hensarling #1 and 15.3% of the D&L wells, to GGE for US$575,000, subject to conditions and OGI shareholder approval. Mark Freeman, a GGE director, is also an OGI director and took no part in OGI's evaluation.

asset acquisition disposition

Louise (Templet #1) will be suspended and used as a water disposal well for Hensarling #1, as the JV could not justify a sidetrack. The prospect did not deliver, though the well gave useful geological data.

drilling result

West Klondike's Wilbert Sons #1 began production on 2 September at ~1.4 mmcfd from the Lower Nod Blan, after discovery in December 2012 and repeated delays. GGE holds 11.7% WI. Rates should rise as the well stabilises.

production update

Louise logs show Cris R II, III and IV all wet; Cris R IV looks already swept despite being 244 ft updip of Simineaux #1. A sidetrack is under review. This is a setback for the prospect's 600-800k bbl target; the well is ~US$1m under budget.

drilling result

Louise (Templet #1) spudded 10 August 2014, expected to take 45 days to reach target depth. GGE holds 22.57% WI and pays 19.26% of dry hole costs. Ends the long delay since the originally planned Q3 2013 start. Target 600,000-800,000 bbl.

drilling spud

GGE finalised Louise at 22.57% WI, paying 19.26% of dry hole costs; the rig is delayed to late July. West Klondike start slips to end July, and Abita's upper 18 recompletion is done. A former Desiree partner is suing for a 5.3% WI; GGE will defend.

joint venture update

Half-year to December 2013: profit A$957,918 against a A$1.07m loss a year earlier, on production revenue up 94% to A$3.83m. Cash A$1.26m, no equity raising needed. West Klondike facilities now expected within 3 months, with interest stated as 11.713%.

half year report

Desiree Hensarling #1 (GGE 35.6%) on a jet pump now produces 390 bopd, with 350-400 expected. Management estimates US$250-285k per month for GGE; with D&L #3 and Abita, total production income is expected over US$400k per month.

production update

Settlements were reached with landowners affected by the D&L #1 blowout and with the rig's workover operator, at similar values and with negligible net impact on GGE. Personal injury cases remain; GGE expects insurance to cover them, with exposure no more than US$1m.

material agreement

The 5-for-1 consolidation is complete, leaving 747,998,870 shares, with market cap about $5.2m at 0.7c. Net working capital is about $1.3m and cash about $1m. Desiree is on production, D&L #3 nets about $150k per month, and West Klondike facilities are expected in 5 months.

production update

Desiree Hensarling #1 (GGE 35.6%) began production 3 July, making 240 bbl in its first 17 hours, with 330-370 bopd expected. Management estimates an extra US$250-275k per month net revenue. This is the first production from the December 2012 discovery.

production update

Desiree's Hensarling #1 (GGE 35.6%) flowed 370 bbl oil per day unassisted from the Cris R III. It will be shut in while production facilities are installed over 3-6 months, after which the Cris R II will be perforated.

flow test result

Abita operator recommends abandoning the 19 Sand due to rising water and recompleting in the 18 Sand; the well is shut in. GGE (20%) won't join a partner's sole-risk rework. Remaining gross reserves cut to 150,000-300,000 bbl oil and 4.5 BCF gas (from 350-700k bbl and 6 BCF).

production update

West Klondike Wilbert Sons #1 (GGE 10.5%) flowed over 2 mmcf gas per day from the lower Nod Blan. It is suspended awaiting facilities and export pipeline, expected to take 4-6 months. This confirms the December 2012 discovery as flowing.

flow test result

The board will consolidate shares 5 for 1, cutting shares on issue from 3.74b to about 748 million. The stated reason is that tiny price increments cause 25-50% moves per trade and hurt liquidity. Listed options go to 7.5c exercise price; shareholder meeting notice to follow.

security holder rights change

Port Hudson reached 10,500 ft and logs found pay, but GGE decided it is not commercial enough to join completion. This is another dry-hole outcome for GGE; the fixed cost share was US$232k.

drilling result

Abita (GGE 20%, reverting to 15%) is back on production from the 19 Sand, cleaning up at 1.3 mmcfd and 30 bbl of condensate per day. This follows the failed 29 Sand attempt and the switch to the 19 Sand.

production update

Electric logs at West Klondike's Wilberts Sons #1 (GGE 10.5%) confirm net pay of 4 ft in the Lario, 6 ft in the U Nod Blan and 35 ft in the L Nod Blan. Casing is being run for testing. This is a discovery after several dry holes in 2012.

drilling result

Calloway #1 at S Welsh hit a significant gas influx from a zone above the target; the operator says the well is under control but recommends plugging it. The well had not reached the Marg Tex target, and a re-drill proposal is being prepared. GGE's cost share is now about US$165,000.

drilling result

Logs confirm 49 ft of net pay in Cris R III plus 31 ft in Cris R II at Hensarling #1 (GGE 35.6%), slightly above pre-drill expectations. This confirms the discovery; casing is being run before drilling on to Cris R IV and V. GGE's dry-hole share estimate rose to about US$1.35m from US$1.1m.

drilling result

Electric logs at Desiree's Hensarling #1 (GGE 35.6%) indicate 31 ft of net pay in Cris R II, in line with expectations. The tool could not log the deeper Cris R III, so the well is being conditioned for re-logging. Early sign of a discovery after three dry holes in 2012.

drilling result

West Klondike's Wilberts Sons LLC #1 spud overnight and was drilling at 925 ft, expected to take 30 days to reach 10,900 ft. GGE held 10.5% (paying about 14%, roughly US$460,000 to TD) in a 2-4.8 million bbl oil target.

drilling spud

The Desiree well, Hensarling #1, spud and was drilling ahead at 850 ft toward 12,550 ft. GGE held 35.6% with a dry-hole share of about US$1.1m, targeting up to 1 million bbl of oil and 30 BCF of gas updip of a field producer that yielded 2.3 MMBO.

drilling spud

Dickens #1 at Leduc Reef reached 8,500 ft on 20 September; logs showed commercial recovery unlikely and the operator proposes plugging and abandoning. A dry hole, GGE's third in 2012 after Vermilion and Austin Bayou. Management says Desiree and West Klondike cash calls are received.

drilling result

GGE restructured its Napoleonville terms: interest in future wells rises from 17.5% to 21.9%, while Desiree is cut by 5.25% to 35.6%, lowering GGE's well cost to about US$1.1m from US$1.4m. Desiree spud now early October; first new prospect Louise targets 600,000 bbl.

farm in farm out agreement

Dickens #1 at Leduc Reef, Arkansas, spud 26 August 2012, expected to take 21 days to reach 8,600 ft. GGE holds 22% (paying 26.66%); its share of well cost is about US$335,000, up from the earlier US$280,000 estimate. Most likely 1.2 MMBO, upside 12 MMBO.

drilling spud

Austin Bayou HRI #1 reached 11,330 ft and is to be plugged and abandoned as logs showed commercial recovery unlikely; the fault was steeper than mapped. Another dry hole, though management says the program is fully funded.

drilling result

GGE acquires 15% of the Port Hudson project in Louisiana, targeting up to 500,000 bbl of oil. GGE's dry-hole share is about US$160,000, with spud expected early November 2012. Another small, low-cost addition to the program.

asset acquisition disposition

GGE acquires 10.5% of the S Welsh project in Louisiana, a development well targeting up to 450,000 bbl of oil. GGE's dry-hole cost is about US$145,000, with spud expected October 2012. A new small, low-cost prospect.

asset acquisition disposition

GGE buys a further 8% of the Leduc Reef prospect in Arkansas, lifting its interest from 14% to 22% (inference: prior 14% from earlier 10.5% LOI is not stated). Spud now late July/early August; GGE's share of initial well cost is about US$280,000.

farm in farm out agreement

Vermilion River drilled a further 300 ft to a TD of 17,320 ft without finding more sands of interest. Logs showed no commercially interesting pay, and the operator was preparing to plug and abandon the well; Austin Bayou was next.

drilling result

At 16,535 ft Vermilion River appears to have missed the Het 1A sand, a main target. GGE cuts its net estimate to 170,000 bbl condensate and 7 BCF gas, from 260-430k bbl and 8.5-14.5 BCF. Lower targets remain.

drilling progress report

GGE farms out 15% of Desiree after well costs rose, leaving 41% and a carry for 5% of drilling costs. A large US operator takes over, spud moves to July 2012, and GGE's dry-hole exposure is about US$1.4m. Leduc slips to June; Austin Bayou rig is delayed.

farm in farm out agreement

GGE signs a letter of intent for a 5% interest in the Pintail prospect, St Martin Parish, Louisiana. Target is 152 BCF and 2.3 MMBC (up to 350 BCF); GGE's dry-hole share is about US$1.2m. Spud is expected in Q4 2012.

asset acquisition disposition

Mark Freeman, an executive director since October 2010, becomes Managing Director with no change to his salary package. Charles Morgan remains Executive Chairman.

director officer appointment

Abita began producing on 18 March 2012 from the 30 sand at about 900 mcfd and 25 bcpd with no water. This is first production from the June 2011 discovery, in which GGE holds 20%. The operator will ramp rates up gradually.

production update

GGE acquires a 23.25% interest in Austin Bayou, an updip production well in Brazoria County, Texas. Net targets are 2.7-4 BCF and 40,000-60,000 bbl condensate. GGE's well cost is US$385,000 (plus US$265,000 if successful); spud is due early April 2012.

asset acquisition disposition

Grizzly logs found only 14 ft of possible pay on water in the Abbeville; the well is not commercial and will be plugged. A dry hole after targets of up to 100 BCF; turnkey contract capped GGE's cost at ~US$550,000.

drilling result

Partial farmout of Napoleonville deep prospects to a private US company, which earns 57-63% and must drill up to two wells by 31 March 2013. GGE keeps 17-19% and pays 11.5-13% of dry-hole costs. Desiree (spud April 2012) and D&L field excluded.

farm in farm out completion

Vermilion River well (R. J. Perrin #1) spudded 29 December 2011, expected to reach 17,500 ft in about 100 days. Targets 110 BCF and 3.3 MMBC; GGE's 7.83% share is ~US$1.05m, partly turnkey to ~13,000 ft. GGE's largest prospect.

drilling spud

Logs show the Lyons Point Pruitt #1 well is not commercial, and the partners will plug and abandon it. A dry hole for GGE's 5% after a 3 MMBC and 60 BCF target; the turnkey contract limited cost (earlier estimate US$430,000).

drilling result

Agreed to acquire 5.25% of the Grizzly prospect in Cameron Parish, Louisiana, a well already drilling at 9,700 ft toward 13,530 ft. Targets up to 100 BCF and 2 MMBC. GGE's share of cost is capped at ~US$550,000 under a turnkey contract.

asset acquisition disposition

Letter of intent to acquire 7.83% of the Vermillion River gas-condensate prospect in Louisiana, operated by Walter Oil & Gas, a partner in the La Posada discovery. Targets 110 BCF and 3.3 MMBC; GGE's dry-hole share is ~US$1.05m. Spud expected in 1-2 months.

asset acquisition disposition

Signed a letter of intent for a 10.5% interest in the Leduc Reef oil prospect in Arkansas, paying 14% of the first well. Target is 1.2 million barrels, up to 12 million; GGE's share of well cost ~US$180,000. Spud late December or early January.

asset acquisition disposition

D&L #3 M sand was perforated and put on production, initially flowing 160 bopd and 1,150 mcfd while cleaning up. All output is sold through existing facilities. This follows the depletion of the Stray B sand and restores production for GGE's 39.4%.

flow test result

Upper 30 Stray sand flowed 2,159 Mcfd and 43 bbl/d condensate, completing testing of Abita's three lower intervals. GGE holds 20% (15% after payout). Production expected December quarter; a development well and a northern fault-block prospect are being considered.

well test result

Abita flow tests: 29 Sand 2,248 Mcfd and 67 Bopd; 30 Sand 1,364 Mcfd and 29 Bopd. The Upper 30 Sand is still to be tested. Resources estimated at 7.9 BCFG and 350,000-700,000 bbl, with production in the December 2011 quarter.

well test result

GGE sold its 4.75% La Posada interest for US$7.5m cash, having spent about US$1.6m on the Thibodeaux #1 discovery well (per the annual report). The company calls it a significant funding milestone and a monetised untested development asset. It ends exposure to the Thibodeaux upside; Lyons Point was drilling at 8,200 ft.

asset acquisition disposition

Lyons Point's Pruitt et al #1 spudded on 13 September 2011 and was at 1,248 ft. GGE holds 5% after the Kilgore swap. Target 3 MMBC and 60 BCFG, 16,300 ft total depth, about 45 days, fixed-cost turnkey drilling.

drilling spud

D&L #3's Stray B sand has depleted after ~162 million cubic feet of gas and 1,050 bbl of condensate. The M oil sand (400,000 bbl, 1.2 BCF) will now be completed in 2-4 weeks. Expected rates trimmed to 200-400 bbl/d; 10-12 BCF updip potential flagged.

production update

Shortfall allotted, completing the entitlement offer: ~A$2.5m raised before costs via 623.3m shares at 0.4c with free options. Shares on issue now 3,739.8m. Funds go to La Posada and Abita completion, Lyons Point and West Klondike drilling, and repaying working capital loans.

capital raising announcement

GGE takes a 5% interest in the Lyons Point exploration well (Clayton Williams operated, spud second week of September, 16,300 ft), swapping a 5% West Klondike interest with Kilgore, leaving 10.5% there. GGE's well cost is US$462,000; targets 3 MMBC and 60 BCF.

farm in farm out agreement

Thibodeaux #1 net pay at La Posada is upgraded to 248 ft from 176 ft, a 40% increase, after porosity logs and sidewall cores. Drilling continues to 19,300 ft; production now expected early 2012 (previously Dec 2011 quarter), with a delineation well planned for Q1 2012. GGE holds 4.75%.

drilling result

D&L #3 production was raised to over 4,000 mcfd on a 16/64 inch choke, from 1,500 mcfd when it started on 19 July. The well was also making 30-35 bbl/d of oil with no water, drawing down the Stray B sand to move to the M oil sand.

production update

GGE buys 15.5% of the West Klondike prospect (spud expected October, ~US$660k initial cost) and launches a fully underwritten 1-for-5 rights issue at 0.4c to raise ~A$2.5m. D&L #3 is now at 2.6 mmcfd. 105m incentive options are proposed, subject to shareholder approval.

capital raising announcement

Thibodeaux #1 is called a significant discovery: 232 ft gross (176 ft net) of resistive sand logged, with 37 ft of net commercial pay confirmed where porosity data was obtained. Stuck pipe limited logging; the well is being sidetracked. Production is expected in the December 2011 quarter. GGE holds 4.75%.

drilling result

D&L #3 started production at 1,500 mcfd from the 10 ft Stray B sand, ending the wait for sales that followed the June test. Rates may rise to 4,000-5,000 mcfd. GGE holds 39.4%. The M sand estimate is unchanged at 400,000 bbl and 1.2 BCF.

production update

Abita #1 is cased to TD and thin-bed logs lift net pay to 171 ft in 9 intervals. Likely resource is 7.9 BCF and 350,000-700,000 bbl. GGE also secured an $800,000 six-month loan from a director-related entity at 12% a year to cover overruns and completion.

drilling result

Abita #1 is called a significant discovery: logs show 112 ft of net gas pay in 7 intervals plus a possible 21 ft of oil pay. GGE's preliminary estimate is 7.9 BCF and possibly 350,000-500,000 bbl. The operator will complete the well; GGE's share of well cost is now ~US$750k.

drilling result

D&L #3 re-tested the Stray B sand at 2,108 mcfd, with sales expected within 2 weeks. M sand recoverable is revised to 400,000 bbl and 1.2 BCF. D&L #2 is now expected to serve only as a salt water disposal well after an obstruction, with D&L #3 recovering its M sand reserves.

resource reserve update

Abita #1 reached its 10,700 ft TD with a sixth oil and gas show, in the 32 sand. Primary objectives are 40-50 ft high to the best Coquillo Bay well. Electric logs are due within 24 hours, so pay is unconfirmed.

drilling result

D&L #3 tested 1,000 mcfd from a 10 ft Stray B sand, with sales expected in 2-3 weeks. Logs show the well crossed a fault in the M sand, and reserves in the new Stray B sand are unknown. GGE's interest is now stated as 39.4%.

well test result

Abita #1, the 20% GGE prospect, is reported as spudded on 20 April and setting casing at 2,500 ft. The company had said spud was expected around 15 May. Target depth is 10,700 ft and resource 1-2.3 MMBL and 4.5-9.4 BCF.

drilling progress report

Logs on D&L #3 show 31 ft of gas and 33 ft of oil net pay in the M, Stray and N sands. The earlier mud-log sign of a new S sand was wrong. The O sand is still to be logged, and resource estimates will be revised.

drilling result

Dugas & Leblanc #3 spudded 16 April 2011 and is at 1,976 ft, heading to 8,000 ft. GGE holds 39.5%. The updip well targets gas in the M, N, Stray and O sands, with the company citing flow potential above 4,000 mcfd.

drilling spud

GGE signed to buy 20% (15% after payout) of the Abita prospect in Plaquemines Parish, operated by Clayton Williams Energy. Targets 1-2.3 MMBL and 4.5-9.4 BCF; its share of initial well cost is about US$550k. Spud expected late May or June.

asset acquisition disposition

Placement of 360m shares at 0.5c raises A$1.8m from sophisticated investors, with one free 1.5c option (expiry 30 June 2013) per two shares. Funds go to Thibodeaux #1, D&L #3, Desiree #1 and Napoleonville work, following the rights issue and A$6.5m debt elimination.

capital raising announcement

Thibodeaux #1 at La Posada spudded 21 March 2011 and was at 2,438 ft, heading to 19,300 ft. GGE holds 4.75% (4.275% after payout) and pays about US$1.175m of initial costs. Targets are 10.3 MMBL and 302 BCF, the company's most likely estimate.

drilling spud

Rights issue completed with all shortfall shares and options allotted, finishing the 1.08bn share offer. Working capital debt is settled, with A$3m converted to equity and the rest repaid or offset against underwriting. Thibodeaux #1 expected to spud late March.

capital raising announcement

Shareholders took up only 279.9m shares (A$1.4m) of the rights issue, leaving a shortfall of 800.8m shares to the underwriters. The take-up was about a quarter of the offer, so the underwriters carry most of the raising.

capital raising announcement

D&L #2 has settled at about 150 boe/d (90 bbl/d oil, 1.5 mmcfd gas), well below the 320 bbl/d seen in December; the N sand has only 9 ft net pay. Insurers have paid US$5m of blowout costs, with a further US$6m approved; about US$2m of GGE's share is expected to be covered by its umbrella policy.

production update

Raises A$840,000 by placing 140m shares at 0.6c with free options (options need shareholder approval). The rights issue grows to up to A$5.4m (1.08bn shares at 0.5c), underwritten up to A$4.3m, up from A$4.7m and A$3.9m.

capital raising announcement

D&L #2 began commercial production on 20 December 2010, the first production from the Napoleonville programme. It is being brought on slowly, with earlier test rates about 200 bbl/d and 1.9 mmcfd. Grand Gulf holds 39.5%.

production update

Replaces the October rights issue with a 1-for-1 issue at 0.5c to raise about A$4.7m, underwritten up to A$3.9m. Financiers convert 50% of debt to shares at 0.6c. Also buys 4.75% of La Posada (10.3 MMBL, 302 BCF most likely), first well due Feb-Mar 2011.

capital raising announcement

D&L #2 flow test from the N sand reached about 200 barrels of oil and 1.9 mmcfd of gas a day, in line with the earlier 200+ bopd and 1,000 mcfd expectations. The well is shut in for about 5 weeks while pipeline and facilities are built.

well test result

Managing Director James Trimble retires as CEO and becomes a non-executive director; Company Secretary Mark Freeman joins the board in an executive role. A significant overhead cost cut is planned. The 7 October rights issue and other raisings are delayed until after D&L #2 testing, which is expected within 14 days; financiers will keep supporting the company. Mound II and D&L #3 funding depends on further equity raisings.

director officer appointment

Clifton Lands #1 logs show a small, uneconomic zone and the gas-show zone appears depleted. The well will be temporarily plugged and abandoned, with a possible later test of a deeper Marg Vag interval. Second dry hole in a row after Sager #1; Grand Gulf bears about 60.76% of dry hole costs.

drilling result

Clifton Lands #1 (Grand Gulf 46.83%) has spudded, to be drilled to 5,102 ft in about 10 days. It targets 5 BCF and 100,000 barrels, with dry hole cost estimated at US$1.1m.

drilling spud

The entitlement issue is replaced: 4 shares for every 5 held at 1 cent, up to 752.6m shares to raise about A$7.5m, underwritten up to A$4m. Seaspin lends a further A$500,000 at 8%. Delays were due to uncertainty over blowout costs, which the Board believes will largely be insured.

capital raising announcement

Sager #1 is a dry hole: logs show the zones of interest wet, and the gas-show zone appears depleted. The well will be temporarily plugged and abandoned. Grand Gulf bears about 57.15% of the plugging costs. It is the first setback in the post-blowout drilling program.

drilling result

Dugas & Leblanc #2, the relief well, reached total depth with over 118 ft of net oil and gas pay across three Big Hum sands. Completion takes about 2 weeks, then testing, with initial rates of 200+ barrels a day hoped for. The company believes the 1.2 MMBO and 3 BCF target is not materially reduced by the blowout.

drilling result

Grand Gulf secures a A$3m loan from Seaspin (linked to Chairman Charles Morgan) and Skye Equity at 8% to fund working capital during the entitlement offer. It converts to shortfall shares, and each underwriter gets 50m options at 1.55c. Offer dates will be extended; insurance is expected to largely cover well costs.

debt financing

A new blowout preventer and wellhead are secured on Dugas & Leblanc #1, which should now be able to be plugged and abandoned. Grand Gulf's best estimate is that most if not all costs will be covered by insurance. Dugas & Leblanc #2 is planned as a producer.

drilling progress report

Grand Gulf sets out cost scenarios for the Dugas & Leblanc #1 blowout: its share could be about US$1.92m if the relief well is needed. A class action has been filed against the operator. A supplementary prospectus will be needed. Underwriters retain a material adverse change right, and loan funds will likely be needed.

drilling progress report

Control of Dugas & Leblanc #1 now follows two tracks: a relief well, using the rig meant for Sager #1, plus work to re-attach a blowout preventer. The relief well should intercept the original bore within about 6 days of starting. This delays the Sager #1 well.

drilling progress report

Dugas & Leblanc #1, the July discovery, started flowing oil and gas to the atmosphere after an apparent blowout preventer failure let completion fluid drain. Control is expected within 24 hours and the company says producing capability should not be damaged. Grand Gulf holds 39.5%.

drilling progress report

Grand Gulf launches a one-for-two entitlement issue of up to 470m shares at 1.5c to raise about A$7.06m, with up to A$4.5m of the shortfall underwritten. Funds go to Napoleonville, where the program expands to six wells including Mound II and two Dugas & Leblanc development wells.

capital raising announcement

Dugas & Leblanc #1 was deepened to 8,080 ft and logged a further 28 ft of Operc pay, lifting total pay to over 160 ft across four sands. Oil came to surface in the mud tank during deepening. Testing of the three Big Hum sands starts next.

drilling result

Dugas & Leblanc #1 reached 7,802 ft and logs indicate over 120 ft of net oil and gas pay across three sands, resolving the gas-show question positively. Completion takes about two weeks, then testing. Flow rates are not yet known.

drilling result

Dugas & Leblanc #1 spudded on 22 June 2010, the first of the three-well Napoleonville program, about seven weeks after the original early-May target. It targets 1.2 MMBO and 3 BCF and should take about two weeks to drill. Grand Gulf holds 39.5%.

drilling spud

Placement of 200m shares at 0.5c (A$1m) completed, bringing total raised to about A$2.7m before costs. Golden Gate farm-down also completed, leaving Grand Gulf with 34.5% of Napoleonville. First of three wells now expected to spud in the first week of May 2010.

capital raising announcement

The entitlement issue is now fully subscribed after the shortfall was placed. 347,044,598 shares at 0.5c were issued, raising A$1.74m before costs, taking shares on issue to 739,089,196. The A$1m placement is still being finalised.

capital raising announcement

Grand Gulf signs a letter of intent to farm out 15% of Napoleonville to Golden Gate Petroleum, which pays 23% of costs and a US$300,000 entry fee. Grand Gulf stays operator and expects about 35% per well, so it can drill more wells with its funds. First well targeted May 2010.

farm in farm out agreement

Prospectus for a one-for-one non-renounceable entitlement issue at 0.5c to raise about A$1.74m, plus a placement of up to 200m shares at 0.5c (A$1m), conditional on a 18 Feb 2010 meeting. Formalises the January recapitalisation; the text flags a conditional Macquarie waiver as a key risk.

capital raising announcement

Recapitalisation: Grand Gulf to become Napoleonville operator and lift its interest from 26.4% to 47.9% by carrying Waterloo for US$4m. Macquarie adds US$1.5m. Raises about A$2.9m via a one-for-one entitlement issue and placements of 245m shares at 0.5c, to fund three wells in 2010.

capital raising announcement

Accepted an offer for its LeFlore County, Oklahoma interests, effective 1 May 2009, closing about 7 July; proceeds reduce the Macquarie facility (US$2.65m). Proved reserves fall about 5 Bcf and production about 200 Mcf/d. Macquarie to provide a further US$300k on conditions.

asset acquisition disposition

Macquarie's waiver expired 16 May 2009 with no response on extension, so default is a threat and going-concern doubt is flagged. Cash lasts into June. Grand Gulf's own review claims over 500 Bcf unrisked gross potential at Napoleonville, five priority prospects, and it is seeking a partner or buyer.

debt default or forbearance

Proved reserves of 6.9 Bcf and 22.8 kbbl put Grand Gulf in breach of its Macquarie facility; Macquarie waived defaults until 16 May 2009. The 1c placement is abandoned and no Oklahoma bid has emerged. Going-concern doubt flagged if funding fails; trading stays suspended.

debt default or forbearance

Dugas & LeBlanc #1 reached 9,500 ft and was water wet with no hydrocarbons, a dry hole. Landry #1 on hold. Company fears it will breach Macquarie reserves ratios on its fully drawn US$2.5m facility and cannot repay; shares remain suspended.

drilling result

Dugas & LeBlanc #1 (26.4%) spudded 7 February, the first Napoleonville well, after months of slippage from the September plan. At 2,025 ft with casing being set; target about 9,500 ft, 5-25 Bcf. Kimball #1-19 tested 1.2 MMcf/d.

drilling spud

Plans a placement of up to 100m shares at 1c, subject to shareholder approval, to fund Napoleonville drilling and working capital. Also hunting a buyer for Oklahoma assets. Dugas & LeBlanc rig moves in next week. Net production 44.5 mmcfe.

capital raising announcement

AFE signed for the first Napoleonville well, Dugas & LeBlanc #1 (26.4%, paying 29.3%), targeting 5-25 Bcf; spud slipped to late November 2008. Caldwell #1-12 produces over 1 MMcf/d. Reed #4-9 reached 9,108 ft. Patman wells pump a gross 20 BOPD.

drilling scheduled

Macquarie working capital facility finalised: US$50m limit, initial US$2.5m borrowing base, refinancing an existing US$500k loan. Macquarie got 45m options at 4c to Sept 2012; a shareholder meeting will approve the further options. Resolves the April term sheet.

debt financing

Reserves at 30 June 2008 include Napoleonville for the first time: 3P net 10.5 Bcf gas and 178,500 bbl oil; proved 4.3 Bcf and 35.3 kbbl. Management says proved plus probable NPV10 exceeds US$16m, and US$28m with possible, at $110 oil and $8 gas.

resource reserve update

Fee Minerals sale completed for net US$2.3m, as flagged in April. Bourque #1 (10%) is to be plugged and abandoned after unsuccessful tests on all sands, ending that thread. Ashby #14-29 flows 77 BOPD and 1,325 Mcf/d; Wadsworth #1's lowest sand was water wet.

drilling result

Signed a term sheet for a US$50m Macquarie credit facility with an initial US$2.5m borrowing base, tied to warrants; closing is subject to documentation. Napoleonville leads and prospects rose from 29 to over 50, and up to four wells are planned for 2008. Interest now 26.3%.

debt financing

Grand Gulf agreed to sell its 4,000 net fee mineral acres for net US$2.31m, a small profit on the US$2.23m cost bought in July 2007. Closing is 15 April 2008; proceeds go to Napoleonville drilling. It keeps working interests in 8 acquired wells.

asset acquisition disposition

Napoleonville leads rose from 22 to 29, with potential of over 200 Bcfg and 10 million barrels of oil for Grand Gulf if all matured and successful. The operator plans 5-8 prospects by end March, first well in Q2 2008. Still only leads, not prospects.

resource reserve update

First reserve booking at 31 December 2007, excluding Napoleonville and Fee Minerals: proved 2.76 Bcf and 32,600 bbl; proved plus probable 3.14 Bcf and 123,300 bbl. Net present value (10%) is A$15.6m, which the CEO says exceeds market capitalisation.

resource reserve update

Bourque #1 (10%) found its Krumbar target sand present but non-productive, a miss for the 12 Bcf prospect; an up-hole zone is being tested. Carrin Patman #1 tested 50 bbl/d. Pate #6-18 is on sales. Company says 14 wells drilled in 2007, success over 85%.

drilling result

Gas production passed 500 mcf/d, lifted by ConocoPhillips #4 (7.5%) at 2.9 mmcf/d, Nixon #1-8 at 1 mmcf/d and Ashby #10-29. Resolves the long ConocoPhillips #4 sales delay. Carrin Patman #1, the first oil well, reached TD and will be tested; Bourque #1 spuds by end-November.

production update

Grand Gulf takes a 12.5% interest in the Carrin Patman #1 well, North Francitas field, Jackson County, Texas, by paying 15% of the first well. Its first Texas interest; the well spudded 21 October, targeting 72,000 bbl of proved undeveloped reserves in a field abandoned in 1973.

farm in farm out agreement

Gary A. Fredrick #1 in Vermilion Parish is to be plugged and abandoned because the sands were tight and water wet, ending the 30 Bcf prospect (3.75% interest) as a dry hole. Pate #6-18 (10.4%) is drilling at 8,530 ft; Ashby #10-29 awaits completion.

drilling result

Gary A. Fredrick #1 reached its 14,200 ft target depth and is preparing to run logs. Ashby #10-29 logs show about 60 ft of sand. The company committed to a 10% interest in the Bourque #1 prospect (12 Bcf target, US$1.2m cost), and ConocoPhillips #4 sales slipped to 15 October.

drilling result

Grand Gulf plans an underwritten one-for-four entitlement issue of 74.5m options at 1c to raise about $740,000, exercisable at 6c by 28 February 2009. Argonaut underwrites it; funds go to Oklahoma, Louisiana and working capital.

capital raising announcement

Grand Gulf is farming into Noble Energy's Section 29 in Custer County, Oklahoma, for a 3.825% interest in four old producing wells, two new wells and at least three more planned in 2007. It pays 3.825% of costs; income starts at 269 mcf/month.

farm in farm out agreement

Gary A. Frederick #1 (formerly Catapult-1, 3.75% interest, 30 Bcf potential) spudded on 26 August, targeting a sand at 13,400 ft. A workover rig moved onto Pate #5-18 to complete the Panola sands, while Nixon #1-8 awaits a rig.

drilling spud

Grand Gulf agreed to buy about 4,000 net fee mineral acres in Oklahoma's Arkoma Basin for US$2.23m, completing 12 July. Over half is in LeFlore County, near its existing wells. It gives permanent mineral ownership, royalties and 100% revenue interest in wells it joins.

asset acquisition disposition

Pate #5-18 (25% interest) was turned to sales at 1.3 mmcf/d from the Spiro sand, adding to Reed #4-8. Two more Oklahoma wells are due to spud within 30 days. Catapult #1 (3.75%) is expected to spud within six weeks.

well test result

The Rich Mountain sale completes the exit from Appalachia, following the Little Sandy sale announced by Norwest on 19 June. Both sales netted about US$240,000 for the drilling programs.

asset acquisition disposition

ConocoPhillips #4 flowed 3.2 mmcf/d on test; gas contracts and pipeline are still being arranged. Reed #4-8 is producing about 750 mcf/d while cleaning up, and Pate #5-18 is to be fracced 22 June. Napoleonville seismic data is due by about September.

well test result

The prospectus for a non-renounceable one-for-four entitlement issue was dispatched on 25 May, closing 8 June, with shares issued 14 June. Price and size are not given in this text.

capital raising announcement

A $3.3m placement's first tranche is complete: 25m shares issued raising $1.25m. The remaining 41m shares need shareholder approval at a 26 June meeting. This adds to the earlier 5c raising and Macquarie facility.

capital raising announcement

Reed #4-8 is now flowing to sales at about 1 mmcf/d and still cleaning up, the company's first new-focus production. Pate #5-18 reached 11,802 ft with a 4 ft Spiro zone above 10% porosity. Management calls the first three wells successful.

production update

ConocoPhillips #4 reached 11,962 ft, with pay confirmed at 11,650 ft in the Miocene K sand. The well will be completed, with the completion rig expected in about three weeks. Alto's interest is 7.5%. No flow rate yet.

drilling result

Reed #4-8 reached 9,724 ft, with about 150 ft of sand, 50 ft of net pay and a gas flare while drilling. Alto holds 8%. It will now be completed; flow rates are not yet known.

drilling result

The Home Run (Kentucky) sale has settled and Rich Mountain (Tennessee) is expected to settle shortly. Little Sandy is the only Appalachian interest left, continuing the exit from Appalachia begun in October 2006.

asset acquisition disposition

Three wells due to spud by early April 2007: Pate #5-18 (25% after forced pooling) and Reed #4-8 (8%) in Oklahoma, and ConocoPhillips #1 (7.5%, paying 10%) in Louisiana. Napoleonville seismic data is due for processing by mid-June, with drilling by Q4 2007.

drilling scheduled

Alto signed an A$4m working capital facility with major shareholder Macquarie Bank, in addition to the A$2.5m raising. It will fund Oklahoma drilling, Napoleonville land acquisition and drilling, and possibly further southern Louisiana prospects.

debt financing

Full $2.5m placement of 50 million shares at 5 cents is committed. Macquarie (7%) and Argonaut (6%) become substantial holders, and Macquarie offers a US$500,000 credit line. Ten million shares issue now; the rest need an EGM around 18 December.

capital raising announcement

Alto mandated Argonaut to place 50 million shares at 5 cents to raise $2.5m, with the broker confident of full commitments by day's end.

capital raising announcement

Alto is acquiring a 25% interest in the Waterloo salt dome in Louisiana (30,000 acres), paying 37.5% of a 52-square-mile 3D seismic survey and 28.5% of the first three wells. Drilling is expected mid-2007. Second joint venture with Legend.

asset acquisition disposition

The West Virginia sale to Ascent closed for about US$1.5m for Alto's 29% share, covering leases at a premium to original cost and sunk well costs. This completes the Cornstalk sale announced in September.

asset acquisition disposition

September quarter: the board approved selling the Appalachian assets and redeploying into South Louisiana and Eastern Oklahoma, after low per-well rates in Appalachia. All nine Home Run wells are complete; a further US$800,000 would earn 50% of the whole project. Text is truncated.

quarterly activities report

Director and major shareholder Charles Morgan becomes non-executive chairman, replacing Tony Grist, who steps down from the role for other commitments but stays on as a non-executive director.

director officer appointment

Alto signed to join Legend Petroleum's five-well Louisiana Gulf Coast program at 7.5%–10% per well, costing about $1.3m. It targets about 3 BCF net reserves; first well due early November 2006, program complete by January 2007.

farm in farm out agreement

James Trimble, a director since February 2006, replaces Greg Channon as Managing Director and CEO, based in Houston. Alto will buy 12.5% of Foothills Energy LLC's Oklahoma leases from Trimble for 21 million shares, subject to shareholder approval. A related-party deal, with a new US onshore focus.

director officer appointment

Alto has signed to sell its 29% Cornstalk/Bugrun/Green Park interest to operator Ascent for what it calls a significant premium to cost; no price is given. The sale needs a final agreement, with closing set for early November. The company says the area did not fit its strategic plan.

asset acquisition disposition

The third Little Sandy well (Tussey-1) found a new gas pool, open flowing 120,000–190,000 cubic feet per day, though it cannot be produced soon because of pipeline access. Home Run is steady at 220,000 per day, and Cornstalk wells flowed up to 130,000 per day from a secondary target.

drilling result

First production at Home Run: two wells are flowing at 60,000 cubic feet per day each. Seven more are being connected, which the managing director expects within two months. This resolves the long-awaited first-production thread.

production update

Alto finished its initial Home Run drilling with nine wells that all showed gas, the last being Gary Oliver #1 with multiple shows. Several wells are fraced and awaiting connection to the gathering system, and all nine are to go into production.

drilling result

Home Run: two fraced wells (Blair #3, Ison #3) show strong gas flows, and two other wells flowed naturally at total depth. Management says this validates the project; Alto funds the program to earn a 50% working interest.

drilling result

The Alto merger is complete and the company resumes trading on ASX as AOI, with about 70,000 gross Appalachian acres. Tony Grist is chairman, and a fully funded 26-well drilling program is planned for the first half of 2006.

business combination

Following the Alto merger, Gregory Channon becomes CEO and Managing Director, with Anthony Grist and Charles Morgan as non-executive directors. Sierakowski, Monti and Donovan resign from the board; Donovan stays as Company Secretary.

director officer appointment

Lach Drummond Resources' takeover bid for Alto Energy has reached 91.65% acceptances of Alto shares. The merger would give rights to earn interests in 69,850 Appalachian Basin acres and a fully funded 26-well drilling program, subject to remaining conditions.

business combination