Each one in plain English, with the numbers worked through for a shareholder.
1 July 2009capital raising announcement▲ GoodMajor
The share purchase plan drew applications for about 58.3m shares, about $17.5m, nearly three times the $5-6m expected. With the placement, cash is over $30m at 30 June. Icon plans eight stratigraphic holes and 147 km of seismic outside the Stanwell area.
What it means for a shareholder
58.3m new shares at about A$0.5146 to raise about A$30.0m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (1,943 at the issue price), your slice goes from 0.000511% to 0.000443% of the company. To keep it you'd need 298 more shares - about A$153 at the issue price.
The final drawdown test on LP-2 produced gas within 20 minutes, as at LP-3 and LP-4. All wells are shut in until the water pond and flow lines are done. Sustained gas needs full dewatering, and rates are expected to improve only slowly.
Icon answers an ASX query over a late Appendix 3Y for director Derek Murphy's 4 June share purchase. It blames an administrative oversight during the raising and adds a Computershare director alert service and follow-up procedures.
Drawdown tests at Lydia Pilot produced free gas to surface from all wells, with up to 320 barrels of water per day from Lydia 3. Icon calls it a new gas province. It is a positive early sign, but no commercial flow rate is stated.
Notice of a June newsletter. It recaps the share purchase plan and says the plan should raise $5-6m. It also repeats that the Lydia wells are completed and pumps tested. No new results.
Production tests at Lydia Pilot are due to start 17 June, with the pond nearing completion. Natasha 1, drilled in 2007, shows 135-160 psi. Icon says this suggests possible gas saturation; no certifiable gas content yet and reserves remain undetermined.
Icon releases the share purchase plan booklet: eligible holders can buy $990 to $15,000 of shares at 30c, offer open 12-26 June. Shares are expected to be allotted 2 July. Funds are for development drilling, equipment and running costs.
All three Lydia Pilot wells are completed and pumps tested, with permeability tests due that week. Annulus pressure of 40-85 psig that rebuilds within hours is called a favourable sign. The pond excavation is about 80% done and was slowed by weather.
LP-2 is completed with pumps and monitoring equipment, and LP-1 is being prepared as a monitor well. The rig has moved to LP-3. LP-4 will start dewatering first, and the storage pond is on schedule.
1 June 2009capital raising announcement● NeutralMajor
Icon has commitments for a placement of 45-46m shares at 30c, led by Intersuisse, plus a share purchase plan at 30c up to $15,000 per holder. The plan could add up to about 100m shares. This revives the capital raising abandoned in April.
What it means for a shareholder
46.0m new shares at A$0.300 to raise about A$13.8m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (3,333 at the issue price), your slice goes from 0.00112% to 0.000968% of the company. To keep it you'd need 514 more shares - about A$154 at the issue price.
All four AGM resolutions passed on a show of hands: the remuneration report and the election of Barry, Murphy and Hilless. Proxy votes for each ran well ahead of those against, so the board stays intact after February's failed challenge.
The managing director's AGM presentation repeats known points: 5.4 TCF gas in place, the $36m Stanwell deal, 2 TCF 2P potential not yet proven, and NSAI engaged for reserve certification. Nothing new is stated.
Chairman's AGM address says Stanwell's farm-in lifted market value to $122m, cash was $6.3m last week, and a trading halt was requested for a capital raising including a share purchase plan. Staff rose from 5 to 17. The raising is the revived plan after April's abandoned placement.
LP-2 has a slotted liner and 10.7 metres of net coal over 11 seams. The completion rig has moved to LP-3 to fit pumps, and preliminary core results are expected in 3-4 weeks. Pond construction has begun; commercial gas rates usually take time.
Notice of a May shareholder newsletter. It recaps the three Lydia Pilot wells drilled to 818-819 metres with gas-saturated coals, and says dewatering may take a few months to a year. It repeats that the 5.4 TCF gas-in-place figure is an uncertified estimate and expects some certification in coming months.
Chairman urges shareholders to vote for all resolutions at the 28 May AGM, citing the February EGM's 58% turnout and the risk of a board without three directors. Murphy, Hilless and Barry stand. It also recaps the three Lydia wells drilled and awaiting dewatering.
LP-2 reached its 818 metre target depth and three cores were recovered, with gas desorption testing underway. A workover rig will then fit pumps to LP-2 and LP-3 and convert Lydia 1 to a monitor well before dewatering. Icon says commercial gas flows usually take some time.
Icon completes its October 2008 deal to buy a mineral interest at Bayou Choctaw, the US field where it already holds a 19% farm-in interest, for $25,000 cash and 1.5m shares issued at 36.5c. Shares on issue rise to 334.3m. The interest gives it a seat in lease negotiations.
Icon announces a roadshow from 18 to 29 May with a presentation repeating known facts: 332m shares, $115m market value, 5.4 TCF gas in place and the $36m Stanwell deal. It sets out a $56.5m 2009/10 spending plan, with $36m falling to Stanwell.
Corrected re-release of the earlier LP-2 update, fixing the depth to 638.15 metres. Casing is set ahead of coring, and the final core analysis report is due by end of July. No other change.
LP-2 drilling update with a typographical error in the depth figure, corrected in a later release the same day. Core analysis results are expected progressively over two months, with the final report due by the end of July.
Icon still intends to offer shareholders a pro-rata share purchase plan, but says the timing has not been decided. This softens the April statement that terms would be announced shortly. No size or price is given.
LP-2, the last of the three Lydia Pilot wells, began drilling on 8 May and reached about 105 metres, with surface casing being cemented. The coals will be fully cored for gas-content testing in Brisbane. The water storage pond is under construction.
LP-3 reached its 819 metre target depth, with gas readings of 35-101 units against background up to 10, and casing is being run. Icon says this again indicates gas-saturated coals. LP-2, to be cored, is next; reserves remain undetermined.
Icon answers an ASX query after its shares rose from 27.5 cents to a high of 33 cents. It knows of no unannounced information, and suggests a rival's coal seam gas deal, the drilling and recent reports, and a rebound from selling that opposed its capital raising.
The March 2009 quarterly activities report restates $8.2m cash, the Stanwell gas sale and joint venture agreements, and LP-4's result: 819 metres, 12 coals, gas readings of 40-75 units. LP-3 has been spudded. It adds no new results beyond earlier drilling announcements.
Appendix 5B for the March 2009 quarter shows cash of $8.2m, up from $4.3m, helped by the $6m Stanwell payment. Operating outflow was about $2.1m, there is no debt, and $3.5m of exploration spending is estimated for next quarter. Shares on issue are 332.8m.
LP-4 is completed with pump and tubing, showing 40 psi well head pressure, which Icon says suggests gas-saturated coals. LP-3 started drilling on 26 April and is at 80 metres. Reserves are still undetermined against the 5.4 TCF gas-in-place figure.
Icon lodged its 2008 annual report. The chairman's report recounts the Babcock and Brown MOU lapsing on 30 October 2008 and the 24 December 2008 Stanwell deal (50% of four blocks for $36m; 340 PJ reserves target; 225 PJ over 15 years). Financial figures are not in the text provided.
