Past year: ▼ 50%(0.10c – 0.30c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
9 Sept 2011joint venture update● Neutral
Golden Gate Petroleum, GGE's 15% partner in D&L #3, gives an operations update covering its Permian, Fausse Point and Bullseye plans. It says the D&L #3 primary oil sand will be tested this month. Mostly concerns Golden Gate's own projects, not GGE's.
8 Sept 2011drilling scheduled● Neutral
Kilgore says Lyons Point is due to spud early next week. Repeats the prospect details, including the 3 MMBC and 60 BCF target and 50-66% chance of success. GGE holds 5% after the swap; no new GGE information.
8 Sept 2011investor presentation● Neutral
September investor update restates known discoveries and plans: Lyons Point spud in September, West Klondike in October, and the Desiree #1 well at 52% WI. It targets ~250 bbl/d net production by Feb 2012 and cites the recent A$2.5m rights issue.
8 Sept 2011production update● NeutralMajor
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.
7 Sept 2011capital raising announcement▲ GoodMajor
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.
What it means for a shareholder
623m new shares at A$0.004 to raise about A$2.5m. That's 14% dilution: every existing holder's slice gets 14% smaller. If you held A$1,000 of shares (250,000 at the issue price), your slice goes from 0.00668% to 0.00573% of the company. To keep it you'd need 41,667 more shares - about A$167 at the issue price.
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31 Aug 2011capital raising announcement● Neutral
The entitlement offer closed with shareholders taking up 352.8m shares (A$1.41m). The shortfall of 270.6m shares goes to the underwriters, who include directors' associates, under the underwriting agreements. That is about 57% of the offer taken up by holders.
29 Aug 2011farm in farm out agreement● Neutral
Kilgore's own release on the same swap: it gains 5% of West Klondike and gives 5% of Lyons Point to GGE, keeping 10%. Kilgore receives about A$424,000 from GGE, reimbursing prepaid Lyons Point drilling costs. Mirrors GGE's 29 August announcement.
29 Aug 2011farm in farm out agreement● NeutralMajor
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.
23 Aug 2011drilling result● Neutral
Thibodeaux #1 was logged to 19,071 ft with no further pay below the 248 ft net; testing is expected in 30-60 days, with production early next year. Abita completion starts within two weeks. D&L #3 is making ~US$150,000 a month net to GGE.
11 Aug 2011other● Neutral
Notice that a commissioned independent research report by Strahan Corporate on GGE and its Louisiana assets is on the company website. No new operational or financial information in the announcement itself.
5 Aug 2011drilling result▲ GoodMajor
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%.
1 Aug 2011quarterly activities report● Neutral
June quarter report restates known results: D&L #3 producing over 4,000 mcfd, Thibodeaux #1 discovery with 176 ft net pay sidetracked toward 19,300 ft, and Abita testing from mid-August. Market cap is quoted at A$15.6m with shares at 0.5c.
28 July 2011capital raising announcement● Neutral
Shareholder letter on the 1-for-5 entitlement issue at 0.4c: up to 623.3m shares plus 311.65m free options (1.5c, exp 30 June 2013), ~A$2.49m. Restates the 27 July offer and use of funds; shares go ex-entitlement 29 July. Nothing new.
28 July 2011admin correction● Neutral
Entitlement issue timetable amended: record date moves to 9 August, closing date to 29 August, and shares to be entered into holdings 6 September. Underwriters are listed with a 5% fee. Raising terms are unchanged.
27 July 2011capital raising announcement● Neutral
Offer document for the 1-for-5 entitlement issue at 0.4c, up to ~623.3m shares, with one free option per two shares, raising ~A$2.49m, fully underwritten. It opens 8 August and closes 22 August 2011. This is the formal document for the raising announced 22 July.
What it means for a shareholder
623m new shares at about A$0.004 to raise about A$2.5m. That's 17% dilution: every existing holder's slice gets 17% smaller. If you held A$1,000 of shares (250,321 at the issue price), your slice goes from 0.00803% to 0.00669% of the company. To keep it you'd need 50,050 more shares - about A$200 at the issue price.
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27 July 2011security holder rights change● Neutral
Notice to option holders on the entitlement issue: to take part, options must be exercised before the 5 August record date. The new options are exercisable at 1.5c, expiring 30 June 2013. Proceeds will also repay working capital loans.
26 July 2011production update▲ GoodMajor
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.
26 July 2011production update● Neutral
Golden Gate's release repeating that D&L #3 is producing over 4,000 mcfd plus 30-35 bbl/d of oil. Duplicate of Grand Gulf's announcement, showing Golden Gate's 15% interest.
22 July 2011capital raising announcement▲ GoodMajor
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.
19 July 2011drilling result▲ GoodMajor
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%.
19 July 2011production update● Neutral
Golden Gate's release repeating that D&L #3 began production at 1,500 mcfd from the Stray B sand. Duplicate of Grand Gulf's announcement, showing Golden Gate's 15% interest.
19 July 2011production update▲ GoodMajor
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.
19 July 2011admin correction● Neutral
Replacement of the 19 July D&L #3 production announcement. The content appears the same, 1,500 mcfd from the Stray B sand, with only minor changes to the partner table; the operator label is dropped.
13 July 2011joint venture update● Neutral
Thibodeaux #1 reached 18,500 ft and the drill string parted while pulling out; fishing is under way, with the well said to be under budget and ahead of time. D&L #3 pipe delays are resolved, with production due within 2-3 days. Abita completion is likely to start mid-August.
28 June 2011drilling result▲ GoodMajor
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.
21 June 2011drilling progress report● Neutral
Thibodeaux #1 is drilling ahead at 16,250 ft toward 19,300 ft, with secondary targets next before casing at 17,650 ft. TD is now expected in about 50 days, versus roughly 85 days stated in May. Target is unchanged at 10.3 MMBL and 302 BCF; GGE holds 4.75%.
15 June 2011drilling result▲ GoodMajor
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.
14 June 2011drilling progress report● Neutral
Abita #1 logging tool stuck at 11,300 ft but was recovered; logs are to be re-run, likely within 24 hours, without resistivity. The resistivity data already taken is described as encouraging quality data. No pay confirmed yet; the six shows stand.
14 June 2011admin correction● Neutral
Golden Gate corrects its 9 June D&L update, which wrongly showed a 39.4% interest; its correct interest is 15%. Re-attaches the same text. GGE's 39.4% interest is unchanged.
9 June 2011resource reserve update● NeutralMajor
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.
