Past year: ▼ 50%(0.10c – 0.30c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
5 Mar 2010admin correction● Neutral
Supplementary prospectus to the entitlement offer, adding the Golden Gate letter of intent to farm out 15% of Napoleonville and updating the offer's important notices, including New Zealand investor wording. Administrative; no new financial terms visible.
5 Mar 2010farm in farm out agreement▲ GoodMajor
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.
26 Feb 2010capital raising announcement● Neutral
Confirms the prospectus and entitlement forms were despatched to shareholders on 26 Feb 2010. Offer closes 16 March 2010. Administrative notice with no new information.
18 Feb 2010capital raising announcement● Neutral
Notice letters to shareholders and optionholders restating the 1-for-1 entitlement issue at 0.5c (about 347m shares, A$1.74m) and up to 200m placement shares (A$1m). Funds go to Napoleonville. Offers are not underwritten. Administrative notice with no new terms.
16 Feb 2010capital raising announcement● NeutralMajor
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.
What it means for a shareholder
200m new shares at A$0.005 to raise about A$1.0m. That's 37% dilution: every existing holder's slice gets 37% smaller. If you held A$1,000 of shares (200,000 at the issue price), your slice goes from 0.0576% to 0.0366% of the company. To keep it you'd need 115,259 more shares - about A$576 at the issue price.
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21 Jan 2010quarterly activities report● Neutral
December quarter: Custer County interests sold effective 1 November 2009, leaving Napoleonville and Texas. Restates the Waterloo farm-in, the extra US$1.5m Macquarie facility and the planned 245m-share raising at 0.5c. Two shallow Napoleonville wells proposed for March-April 2010. Cash was A$47k at quarter end per the cash-flow statement.
12 Jan 2010capital raising announcement▲ GoodMajor
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.
What it means for a shareholder
245m new shares at A$0.005 to raise about A$1.5m. That's 41% dilution: every existing holder's slice gets 41% smaller. If you held A$1,000 of shares (200,000 at the issue price), your slice goes from 0.0576% to 0.0338% of the company. To keep it you'd need 141,192 more shares - about A$706 at the issue price.
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26 Nov 2009debt financing● Neutral
Macquarie advanced a further US$50,000 for November under the existing facility, receiving 1,000,000 unlisted options exercisable at 0.5c to 24 November 2013. Small stopgap funding.
29 Oct 2009quarterly activities report▼ Bad
September quarter: net production 180 MMCFe after sales. ConocoPhillips #4 has watered out and will be plugged. Macquarie debt about US$1.98m, default waiver extended to 15 November 2009; cash lasts into November. Remaining Custer County and Texas interests are being marketed.
30 Sept 2009annual report▼ Bad
Annual report to 30 June 2009. Chairman calls it a very difficult year, citing low US gas prices, breached Macquarie loan covenants, asset sales to repay the facility and the Dugas & LeBlanc failure. One Napoleonville well is hoped for in late 2009. Auditor's opinion not shown in the text.
30 July 2009quarterly activities report● Neutral
June quarter: LeFlore sale completed, Macquarie debt down to about US$1.83m and waiver extended to 15 September 2009. Agreed to sell Texas Jackson County well interests to cut debt by about US$239k. Napoleonville now has eight prospects; Henry LeBlanc #1 proposed for Q4 2009. Cash lasts into September.
24 June 2009asset acquisition disposition● NeutralMajor
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.
18 May 2009debt default or forbearance▼ BadMajor
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.
27 Apr 2009quarterly activities report▼ Bad
March quarter: net production 33,385 mmcfe. The Oklahoma sale has met delays as buyers offer deep discounts. The 100m-share placement was cancelled. Napoleonville is under re-evaluation after Dugas & LeBlanc #1, delaying drilling several months. No Oklahoma drilling until 2010.
20 Apr 2009debt default or forbearance● Neutral
Repeats that the company is exploring an Oklahoma sale, a Napoleonville farmout or part sale, and mergers. Macquarie's waiver still runs to 16 May 2009. No new developments.
17 Apr 2009other● Neutral
March monthly operations report lists planned 2010 Oklahoma wells (FHM, Pate, Branscum, Ashby) and says Napoleonville prospects are under review. Claiborne #2-17 is still completing. No new results.
9 Apr 2009debt default or forbearance● Neutral
Grand Gulf remains in breach of its Macquarie facility, with the waiver running to 16 May 2009. It is trying to sell Oklahoma assets, seek farmouts and merger talks, and says Oklahoma sale progress is being made. Shares stay suspended.
17 Mar 2009debt default or forbearance▼ BadMajor
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.
17 Mar 2009half year report▼ Bad
Half-year to 31 December 2008: loss A$2.98m, including A$2.38m of exploration costs written off (likely the dry hole or related; inference). Cash fell to A$1.26m from A$2.41m; interest-bearing debt A$2.59m versus A$670k.
13 Mar 2009drilling progress report● Neutral
After the Dugas & LeBlanc failure, the JV is recalibrating seismic models and reviewing Napoleonville drilling targets. Kimball #1-19 on line at 3,200 Mcf/d; ConocoPhillips #4 back on at 1.2 MMcf/d; Jeanne Reed #1-15 needs clean-out for sand.
3 Mar 2009drilling result▼ BadMajor
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.
12 Feb 2009drilling progress report● Neutral
Dugas & LeBlanc #1 drilling ahead at 2,831 ft. Landry #1 AFE cut by about US$200,000 and it will use the same rig. Kimball #1-19 has flowed up to 3.2 MMcf/d; ConocoPhillips #4 was shut in most of January for condensate.
9 Feb 2009drilling spud▲ GoodMajor
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.
2 Feb 2009admin correction● Neutral
Corrects the quarterly report: directors would take shares in lieu of fees at 1c, not 0.1c as printed. Administrative fix only.
30 Jan 2009capital raising announcement● NeutralMajor
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.
13 Jan 2009drilling progress report▼ Bad
First Napoleonville well delayed again by permitting; company apologises. New AFE saves about US$350,000, with dry-hole cost about US$1m; rig likely around end January. Kimball #1-19 drilled to 9,800 ft, to be completed in Atoka sands.
16 Dec 2008drilling progress report▼ Bad
Dugas & LeBlanc #1 spud still awaits a rig date. Reed #4-9 went to sales at 1,300 Mcf/d. Because US gas fell below $6/mcf, Grand Gulf and operator Foothills will not join further near-term Oklahoma wells after Kimball and FHM, postponing Branscum #3-17.
2 Dec 2008security holder rights change● Neutral
Following shareholder approval at the AGM, 13.775m options issued to Macquarie (for the facility drawdown) and 3m to Argonaut (for advisory services), exercisable at 4c to 2 December 2012. Completes the Macquarie option approval flagged in September.
12 Nov 2008other● Neutral
Notice of an audio broadcast with director Stephen Keenihan on the Napoleonville drilling update, 12 November. The notice itself carries no new information.
11 Nov 2008drilling progress report● Neutral
Dugas & LeBlanc #1 (26.4%, paying 29.3%) still expected to spud late November, with location construction begun. Reed #4-9 (10%) logged 75 ft Red Oak and 70 ft Brazil sand, frac due 10 November. Claiborne #2-17 to be completed in shallower Upper Atoka sand.
