27 Apr 2022other● Neutral
Administrative notice: the company changed its telephone and fax numbers. No operational or financial substance.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
26 Apr 2022investor presentation● Neutral
April 2022 Red Helium presentation repeats known facts: 55% of Valence earning 85%, 10.9 bcf gross P50 prospective resource, Paradox offtake, and A$11m placement funding at least two wells. Shows 1,546m shares and A$3.0m net cash at 31 Dec 2021. Nothing new.
26 Apr 2022drilling spud▲ GoodMajor
Jesse#1A, the maiden helium well at Red Helium, spudded on 24 April 2022 using Aztec rig 980. It is drilling to a planned 8,500 ft in the Leadville Dolomite, about a month. Resolves the spud thread; the result is still unknown.
20 Apr 2022capital raising announcement▲ GoodMajor
GGE raised A$11m via a placement of 250m shares at 4.4c, with one free option per three shares (83.3m options at 8c, 3 years, needing shareholder approval). Funds at least two wells. Well redesigned as Jesse#1A at about US$3.3m, spud late April.
What it means for a shareholder
250m new shares at A$0.044 to raise about A$11.0m. That's 16% dilution: every existing holder's slice gets 16% smaller. If you held A$1,000 of shares (22,727 at the issue price), your slice goes from 0.00177% to 0.00148% of the company. To keep it you'd need 4,428 more shares - about A$195 at the issue price.
Create a free account to see this worked out for your own holding.
13 Apr 2022director officer appointment● Neutral
Lloyd Flint, a chartered accountant with 25 years' experience, was appointed company secretary with immediate effect. Replaces Mark Freeman in that role (inference, following his resignation).
11 Apr 2022material agreement▲ Good
Valence signed a non-binding-style Strategic Alliance with Paradox, building on the March offtake deal. It covers restarting Paradox's liquefier with Red Helium gas, joint marketing and CO2 disposal options, with a US$75,000 joint study. 13.5m GGE shares go to a consultant.
8 Apr 2022director officer appointment● Neutral
Executive Director Mark Freeman's resignation from the board was accepted, effective 15 April 2022. No reason is given. He had also been Company Secretary.
6 Apr 2022other● Neutral
GGE shares began trading on the US OTCQB market as GRGUF on 5 April 2022, as a secondary quotation to the ASX listing. No shares were issued for it and no material extra compliance burden is stated.
5 Apr 2022regulatory community update▲ GoodMajor
Utah regulators approved the drilling permit for Jesse#1, with spud planned for 15 April 2022 or earlier. Resolves the pending permit thread, which was expected 60 to 90 days after the February application.
4 Apr 2022regulatory community update▲ Good
GGE confirmed drill locations on three further helium prospects (Earp, Oakley, Kit) plus four step-out locations at Jesse. A second well is targeted for early Q3 2022, depending on Jesse#1 results. Prospects remain undrilled and unproven.
25 Mar 2022drilling progress report● Neutral
Jesse#1 drill site construction began 22 March 2022, due to finish 27 March. The Aztec rig is expected to arrive on 15 April 2022.
16 Mar 2022material agreement▲ GoodMajor
Gas Sales & Processing Agreement signed with Paradox Resources for its Lisbon plant, 20 miles from Red Helium. GGE gets 80% of revenue, less standard tariffs, if Jesse#1 succeeds. Resolves the open offtake thread. OTCQB listing also planned in coming weeks.
14 Mar 2022half year report▼ Bad
Half-year to 31 December 2021 shows a loss of $9.77m, mostly a $9.45m non-cash impairment of the Valence interest. Shares were valued at 3.3c on issue but 1.2c when the deal was announced. Company says it does not reflect operational change.
9 Mar 2022drilling scheduled▲ Good
Drill contract signed with Aztec for Jesse#1, with a firm mid-April 2022 spud. Cost to drill, evaluate and flow test is estimated at US$1.6m. Permit approval is expected ahead of schedule. Follows the earlier preferred-contractor nomination and February permit application.
23 Feb 2022director officer appointment● NeutralMajor
Dane Lance, a reservoir engineer with 16 years' experience (Woodside, Ophir, Oil Search), became Managing Director on 23 February 2022. Keith Martens moves to Technical Director. Lance's package is $247,500 a year initially, plus performance rights and 10m options at 7c, subject to shareholder approval.
18 Feb 2022other● Neutral
GGE adopted the World Economic Forum's ESG reporting framework (21 core metrics) and engaged the Socialsuite platform. A first sustainability report is expected in Q1 2022. No financial or operational impact stated.
8 Feb 2022regulatory community update▲ Good
The drilling permit application for Jesse #1 was lodged with Utah regulators, who indicate approval in 60 to 90 days. Drilling could start in April 2022. Permit is not yet granted.
2 Feb 2022drilling scheduled▲ Good
GGE signed a surface land use agreement for the Jesse #1 well site and nominated Aztec Well Services as preferred drilling contractor. Preparations are said to be on budget and on schedule.
17 Jan 2022drilling scheduled▲ Good
Doug Frederick, a drilling engineer with 20 years at the neighbouring Doe Canyon field, was appointed Drilling Superintendent. The first helium well, Jesse #1, has a site chosen and permitting started, expected within 3 months. GGE funds up to US$1.5m, earning 70% on completion.
6 Jan 2022other● Neutral
Notice that 337.5m shares leave voluntary escrow on 15 January 2022. These are the Kessel deal shares escrowed since the October completion. Potential selling supply for shareholders (inference).
22 Dec 2021asset acquisition disposition● Neutral
GGE completed the extra 30% Valence purchase, issuing 91.2m shares and paying A$400,000. Its stake is now 55%, with shares on issue at 1,283m. Completes the deal announced 15 December.
15 Dec 2021asset acquisition disposition▲ GoodMajor
GGE agreed to buy another 30% of Valence, lifting its stake to 55% with the right to earn up to 85% by drilling three US$1.5m wells. Price is 90.4m escrowed shares plus A$400,000. GGE's net P50 resource rises to 6.3 BCF.
8 Dec 2021resource reserve update▲ GoodMajor
Independent consultant Sproule gave the Red Helium Project a maiden P50 prospective resource of 10.9 BCF gross to Valence (7.4 BCF net); whole-project P50 is 20.8 BCF. Resolves the pending resource estimate; it is unrisked and undrilled. First well now targeted late Q1 2022.
1 Dec 2021admin correction● Neutral
Appendix 4G confirming the corporate governance statement for the year to 30 June 2021 is accurate as at 1 December 2021 and on GGE's website. Administrative filing with no new information.
18 Nov 2021regulatory community update▲ Good
Red Helium leased acreage rose 16% to 27,303 acres with 3,703 freehold acres added. Drill permitting is under way, with the first well's spud scheduled for early 2022. A maiden prospective resource estimate is expected in the near term.
28 Oct 2021admin correction● Neutral
Appendix 4G for the year to 30 June 2021, stating the corporate governance statement is on GGE's website. Administrative filing with no new information.
22 Oct 2021other● Neutral
GGE issued 8.4m shares to marketing consultants S3 Consortium in place of cash payment, with the standard on-sale notice. Small dilution.
15 Oct 2021business combination▲ GoodMajor
GGE completed the Kessel acquisition after shareholder approval on 11 October, issuing 450m shares and 100m performance shares to vendors. It also placed 235m shares at 1 cent (A$2.35m). Total shares now 1,183.5m; Keith Martens leads as CEO.
30 Sept 2021annual report● Neutral
FY2021 annual report: no debt, 11th year without equity or debt funding, and gross revenue over A$1.1m after royalties. 2P reserves 182k bbl at 30 June 2021 table. Hensarling output recovered to about 52 bbl/d in August. Financials not shown.
23 Sept 2021material agreement● Neutral
GGE finished due diligence on Kessel with no material issues. Completion slips to 12 October, so GGE will lend US$650,000 paid to the Valence JV so Kessel keeps earning its 25% interest. The loan becomes repayable in 3 months at 10% if the deal fails.