13 Oct 2010drilling progress report● Neutral
Golden Gate Petroleum's release repeating Grand Gulf's 13 October update: Clifton Lands #1 at 4,515 ft, and approval to plug D&L #1. Duplicate.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
8 Oct 2010drilling spud● NeutralMajor
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.
8 Oct 2010drilling spud● Neutral
Golden Gate Petroleum's release repeating the Clifton Lands #1 spud, giving its own 15% operator interest and 23% dry hole cost share. Duplicate of Grand Gulf's announcement.
7 Oct 2010capital raising announcement● NeutralMajor
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.
6 Oct 2010drilling scheduled● Neutral
Clifton Lands #1 (Grand Gulf 46.83%) is due to spud this week, targeting 5 BCF and 100,000 barrels with a US$1.1m dry hole cost. D&L #2 will be tested when the rig arrives. D&L #3 and Mound II are planned for late 2010 or early 2011.
6 Oct 2010drilling scheduled● Neutral
Golden Gate Petroleum's release repeating Grand Gulf's 6 October program update: Clifton Lands #1 to spud within 1-2 days, D&L #2 testing pending the rig, and D&L #3 and Mound II planned for late 2010 or early 2011. Duplicate.
1 Oct 2010drilling result▼ Bad
Golden Gate Petroleum's release repeating Grand Gulf's 1 October result: Sager #1 logs look wet, the gas zone appears depleted, and the well will be temporarily plugged and abandoned. Duplicate.
1 Oct 2010drilling result▼ BadMajor
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.
1 Oct 2010annual report● Neutral
Annual report for the year to 30 June 2010. The Chairman calls it a positive year of rebuilding, marred by the D&L #1 blowout, with most costs expected to be insured. He says neither Grand Gulf nor its Texas subsidiary has been named in a lawsuit, and investors have kept lending while the entitlement issue is delayed.
28 Sept 2010drilling progress report● Neutral
Sager #1 is at 9,585 ft with significant gas shows, but their meaning awaits logging at the 10,100 ft target depth. On D&L #1, 800 ft of casing has been recovered and the well may still become a producer.
28 Sept 2010capital raising announcement▼ Bad
The entitlement issue closing date is extended a third time, to 3 November 2010, with shares to be issued 8 November. No reason is given in this notice. Offer size and price are unchanged.
28 Sept 2010drilling progress report● Neutral
Golden Gate Petroleum's release repeating Grand Gulf's 28 September update: Sager #1 at 9,585 ft with gas shows, and 800 ft of casing recovered from D&L #1. Duplicate.
23 Sept 2010drilling progress report● Neutral
Sager #1 is drilling at 7,012 ft, on time and on budget. Tubing retrieval from the blown-out D&L #1 has so far failed, so it may become a producer or be plugged. D&L #2 testing waits for the workover rig.
23 Sept 2010drilling progress report● Neutral
Golden Gate Petroleum's release repeating Grand Gulf's 23 September update: Sager #1 drilling at 7,012 ft; attempts to retrieve tubing from D&L #1 failed so far; D&L #2 testing awaits the rig. Duplicate.
16 Sept 2010drilling spud● Neutral
Golden Gate Petroleum's release repeating the Sager #1 spud on 15 September 2010, giving its own 15.15% interest and cost share. Duplicate of Grand Gulf's announcement.
16 Sept 2010drilling spud● Neutral
Sager #1, a non-operated well in which Grand Gulf holds 39.89%, spudded on 15 September 2010 and should take about two weeks. It targets 300,000 barrels and 1.2 BCF proven undeveloped, with the same again as upside. Grand Gulf's dry hole share is US$650,000.
14 Sept 2010capital raising announcement● Neutral
Amends the 10 September timetable: the entitlement issue now closes 5 October 2010 rather than 4 October, with shares issued 8 October. A one-day correction; offer terms are unchanged.
10 Sept 2010capital raising announcement▼ Bad
Grand Gulf extends the closing of its entitlement issue again, to 4 October 2010, citing the Dugas & Leblanc #1 well control problems. Shares are now due to be issued 7 October. Size and price are unchanged.
9 Sept 2010drilling result▲ GoodMajor
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.
9 Sept 2010drilling result▲ Good
Golden Gate Petroleum's release repeating the 9 September result: Dugas & Leblanc #2 logged over 118 ft of net pay across three sands, with completion in about 2 weeks then testing. Sager #1 is expected to spud in 10-15 days. Duplicate of Grand Gulf's announcement.
7 Sept 2010debt financing● NeutralMajor
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.
7 Sept 2010drilling progress report● Neutral
Golden Gate Petroleum's release repeating the 7 September update: Dugas & Leblanc #2 is drilling at 8,248 ft towards 8,550 ft, and #1 remains contained with a workover rig due. Duplicate of Grand Gulf's announcement.
30 Aug 2010drilling progress report▲ Good
Golden Gate Petroleum's release repeating Grand Gulf's 30 August update: Dugas & Leblanc #1 can be plugged without the relief well, and Dugas & Leblanc #2 is being redirected as a development well. Duplicate of Grand Gulf's announcement.
30 Aug 2010drilling progress report▲ Good
The operator says Dugas & Leblanc #1 can be plugged and abandoned without needing the relief well. The relief well, Dugas & Leblanc #2, is drilling below 3,800 ft and is being redirected to serve as a replacement development well.
27 Aug 2010capital raising announcement▼ Bad
Because of the well control problems, the entitlement issue closing date moves from 6 to 20 September 2010. Shares are now due to be issued on 23 September. The issue is delayed, not changed in size or price.
26 Aug 2010drilling progress report▲ Good
Golden Gate Petroleum's release repeating Grand Gulf's 26 August update: the blowout preventer is secured on Dugas & Leblanc #1, which should be able to be plugged and abandoned. Golden Gate expects insurance to most likely cover the costs. Duplicate.
26 Aug 2010drilling progress report▲ GoodMajor
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.
25 Aug 2010drilling progress report▲ Good
Golden Gate Petroleum's release repeating Grand Gulf's 25 August update: Dugas & Leblanc #1 bridged off and is currently dead, though risk remains until the new wellhead is fitted. Duplicate of Grand Gulf's announcement.
25 Aug 2010drilling progress report▲ Good
Dugas & Leblanc #1 "bridged off" on 23 August, when sand built up and plugged the wellbore, so the well is currently dead. A new wellhead stack is still to be fitted within two days and risk remains. The relief well, Dugas & Leblanc #2, is drilling below 2,000 ft.
24 Aug 2010drilling progress report▼ BadMajor
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.