8 Feb 2007director officer appointment● Neutral
Mark Pitts of Endeavour Corporate replaces Katrina Grose, who resigned, as company secretary.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
29 Jan 2007other● Neutral
US subsidiary Alto Energy Inc renamed Grand Gulf Energy, Inc. after the Foothills deal closed on 5 January 2007. The parent plans to seek shareholder approval to become Grand Gulf Energy Limited. Name change only.
10 Jan 2007debt financing▲ GoodMajor
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.
22 Dec 2006security holder rights change● Neutral
1,230,575 listed options with a $3.36 exercise price, held by 340 holders, expire 31 December 2006. Shares closed at $0.06, so the options are far out of the money. ASX waived expiry notices to holders.
21 Dec 2006joint venture update● Neutral
Shareholders approved the 40 million remaining placement shares at 5 cents and the Oklahoma Foothills acquisition. BP's 24-square-mile seismic has arrived and is being interpreted. Napoleonville seismic is under way, while the Louisiana five-well program slipped to late January 2007.
23 Nov 2006other● Neutral
The unmarketable parcel sale is complete: 459,675 shares held by 1,059 holders sold at 7 cents on 15 November, with the company bearing costs. Administrative closure of the July notice.
14 Nov 2006investor presentation● Neutral
Presentation on the new focus on conventional Louisiana and Oklahoma plays. Plans to drill five wells in six months and sell the remaining Appalachian assets. Shows cash of $3.9m, 114.3m shares, and 185.3m after the raising and vendor shares. Mostly repeats known facts.
14 Nov 2006capital raising announcement▲ GoodMajor
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.
What it means for a shareholder
50.0m new shares at A$0.050 to raise about A$2.5m. That's 33% dilution: every existing holder's slice gets 33% smaller. If you held A$1,000 of shares (20,000 at the issue price), your slice goes from 0.0201% to 0.0134% of the company. To keep it you'd need 10,060 more shares - about A$503 at the issue price.
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13 Nov 2006capital raising announcement● NeutralMajor
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.
What it means for a shareholder
50.0m new shares at A$0.050 to raise about A$2.5m. That's 33% dilution: every existing holder's slice gets 33% smaller. If you held A$1,000 of shares (20,000 at the issue price), your slice goes from 0.0201% to 0.0134% of the company. To keep it you'd need 10,060 more shares - about A$503 at the issue price.
Create a free account to see this worked out for your own holding.
13 Nov 2006director officer appointment● Neutral
Stephen Keenihan (geologist) and Allan Boss (Houston banker and lawyer) join as non-executive directors. Andrew Dimsey resigns from the board but stays as a consultant for six months. Board is now Trimble, Morgan, Grist, Keenihan and Boss.
9 Nov 2006asset acquisition disposition▲ GoodMajor
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.
8 Nov 2006asset acquisition disposition▲ GoodMajor
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.
31 Oct 2006quarterly activities report● NeutralMajor
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.
20 Oct 2006director officer appointment● NeutralMajor
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.
20 Oct 2006annual report● Neutral
Annual report to 30 June 2006. The chairman says early Appalachian wells missed expected flow rates, though acreage values rose; the Little Sandy discovery is the best result. A second Home Run drilling phase is undecided. Text is truncated; no financial figures are shown.
12 Oct 2006farm in farm out agreement▲ GoodMajor
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.
12 Oct 2006investor presentation● Neutral
Presentation on the five-well Legend Gulf Coast program, listing well interests (3.75%–13.5%), costs and target reserves. States 114 million shares, $5.5m market cap and $4m cash and receivables. Repeats the same-day announcement with more detail.
4 Oct 2006director officer appointment● NeutralMajor
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.
28 Sept 2006annual report● Neutral
Annual financial report for the year to 30 June 2006, covering the board and company details. The extract is truncated, so no financial figures are available here. Directors are Grist, Channon, Dimsey, Morgan and Trimble; Katrina Grose is Company Secretary.
21 Sept 2006security holder rights change● Neutral
Notice that 17,687,500 ordinary shares leave escrow on 21 September 2006. No other detail given.
18 Sept 2006asset acquisition disposition▲ GoodMajor
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.
13 Sept 2006director officer appointment● Neutral
Katrina Grose replaces Nadine Donovan as Company Secretary, effective 12 September 2006, after Donovan resigned.
31 July 2006other● Neutral
The company is offering to sell small shareholdings worth under $500 (8,771 shares or fewer at 5.7 cents). 1,157 holders with 671,125 shares are affected; they must opt to retain by 14 September 2006. The sale price is 6.7 cents, underwritten by directors.
19 June 2006security holder rights change● Neutral
Notice that 6,216,781 shares and 2,721,797 unlisted 20-cent options expiring January 2008 leave escrow on 30 June 2006. These are securities from the merger; no other substance.
8 June 2006drilling result▲ GoodMajor
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.
4 May 2006production update▲ Good
Home Run gross production rose to 220,000 cubic feet per day (160,000 net to Alto). The Pritchard #5 well is stable at 90,000 cubic feet per day from multiple zones. More wells and zones are still to be brought in.
19 Apr 2006production update▲ GoodMajor
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.
27 Mar 2006investor presentation● Neutral
Alto will present at the US Oil & Gas Downunder Conference in Perth on 30–31 March 2006. The attached slides restate known facts, such as a portfolio of over 75,000 acres and gas flows from all wells drilled; no new results.
15 Mar 2006half year report● Neutral
Half-year accounts to 31 December 2005 (the pre-merger Lach Drummond entity) show a net loss of $399,897, including $182,999 of exploration written off. Also records the January 2006 merger, 1:8 consolidation and the board changes already reported.
13 Mar 2006drilling result▲ Good
The first Cornstalk well in West Virginia reached 1,101 metres and was cased; four cores were bubbling gas. The rig has moved to the second well. Ascent pays Alto's 29% share of the first three wells; the first well awaits fracing.