Past year: ▼ 50%(0.10c – 0.30c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
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.
28 Apr 2006quarterly activities report● Neutral
March quarter: Home Run wells began producing and two more West Virginia wells were drilled. A new 2,000-acre Paint Mountain lease was taken at 100%, and all mineral interests were transferred out. Operating cash outflow was $156,000 for the quarter.
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.
9 Mar 2006drilling result▲ GoodMajor
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.
1 Mar 2006director officer appointment● Neutral
James Trimble, a former Cabot Oil & Gas senior vice president based in Houston, joins the board. He will also consult on strategy and source US acquisitions, earning a 3% commission on exclusive deals he brings that complete.
28 Feb 2006drilling result▲ Good
Two more Home Run wells (Prichard #4 and #5) flowed naturally at 84,000 and 94,000 cubic feet per day. All six wells drilled so far have shown gas; first production is expected within weeks.
23 Feb 2006drilling spud● Neutral
The first well in an approved five-well West Virginia program spudded at Cornstalk, targeting Devonian shale to 1,158 metres. Operator Ascent pays Alto's 29% share of the first three wells' costs.
16 Feb 2006drilling result▲ GoodMajor
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.
3 Feb 2006drilling result● Neutral
The third Little Sandy well reached about 688 metres, intersecting 148 metres of Devonian Shale with gas indications. The first two wells flowed gas at modest, unstabilised rates and are shut in; Alto holds 30% and is carried.
3 Feb 2006business combination▲ Good
The takeover offers closed with relevant interests of 94.43% of Alto shares and 92.64% of options. The company will compulsorily acquire the remainder.
2 Feb 2006business combination▲ GoodMajor
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.
1 Feb 2006security holder rights change● Neutral
Pre-quotation disclosure: 56.6 million new shares and 8.6 million options (20 cents, expiring January 2008) were issued to accepting Alto holders. Compulsory acquisition of the rest is expected by late March, lifting shares to about 114.3 million.
1 Feb 2006other● Neutral
Release of the Employee Share Option Plan rules, an administrative document. It allows option grants to employees and officers, capped at 5% of issued shares.
31 Jan 2006quarterly activities report● Neutral
December 2005 quarter cash report: cash fell to $2.04m from $3.72m, including a US$800,000 contribution to the Home Run joint venture. Estimated spending next quarter is $250,000; three Western Australian tenements were relinquished.
31 Jan 2006quarterly activities report● Neutral
December quarter activities: the Alto merger was declared unconditional after unanimous shareholder approval, and the company renamed Alto Energy International. Home Run (right to earn 50%), Little Sandy (30%) and Cornstalk (29%) are slated for drilling; the mineral projects are unlikely to see further work.
20 Jan 2006director officer appointment● NeutralMajor
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.
20 Jan 2006business combination▲ Good
The Alto takeover offers are extended to 2 February 2006. The company now holds relevant interests in 94.12% of Alto shares and 92.24% of the options.
12 Jan 2006capital raising announcement● Neutral
Prospectus for a nominal offer of 2,000 shares at 23 cents (post-consolidation), mainly to allow re-quotation of the company's shares after the Alto merger. Company to be renamed Alto Energy International (AOI); Channon proposed as CEO, Morgan as chair.
9 Jan 2006security holder rights change● Neutral
Escrow on 7,142,853 shares and 3,571,425 options ends 29 January 2006. If the 8:1 consolidation is approved on 10 January, these become 892,857 shares and 446,428 options at $3.36.
5 Jan 2006business combination▲ GoodMajor
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.
