23 June 2014drilling progress report● Neutral
Site works and rig mobilisation have begun at Dunnart-2: cellar well, flare pit and sump are built and DCA Rig 7 components are arriving. Conductor-hole spud is expected the first week of July.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
13 June 2014farm in farm out completion▲ GoodMajor
Rey says FIRB approval is received and all conditions are met for its EP437 farm-in. Rey earns up to 43.47% by funding 86.94% of costs, capped at $1.7m for Dunnart-2. This resolves the pending 29 May farmout.
29 May 2014farm in farm out agreement▲ GoodMajor
Key and Caracal sign a binding farmout of EP437 to Rey Resources: Rey earns 43.47% by funding 86.94% of costs, capped at $1.7m for Dunnart-2. Key falls to 43.47% as operator, Caracal to 13.06%. Subject to FIRB approval; DMP safety approval is granted, and the drill application is awaiting final approval.
29 May 2014farm in farm out agreement● Neutral
Rey Resources' own notice of its EP437 farm-in: earns up to 43.47% by funding 86.94% of costs, capped at $1.7m for Dunnart-2, with drilling planned in the third quarter of 2014. Repeats Key's announcement.
28 Apr 2014resource reserve update▲ GoodMajor
Key reports prospective resources for EP448: Griffiths 30 million barrels and Patterson 14 million barrels best estimate (unrisked, wildcat). Source rocks are confirmed in the oil window. A two-well program this year depends on native title and heritage approvals. EP104/R1/L15 work programs are deferred to 2015.
15 Apr 2014drilling scheduled▲ GoodMajor
Key expects Dunnart-2 approvals within weeks and has reached preliminary land access terms. It is negotiating a five-slot DCA Rig 7 contract from June 2014. It adds the Wye Knot prospect (best estimate 5 million barrels) and Dunnart (2 million barrels), both unrisked prospective resources.
31 Mar 2014farm in farm out completion▲ GoodMajor
Empire withdraws from EP437 by agreement and assigns its 35% to Key and Caracal. Key rises from 50% to 77% and Caracal to 23%. This resolves the operatorship dispute. Key must give DMP more safety system information; approvals and land access are expected early in the second quarter.
31 Mar 2014farm in farm out completion● Neutral
Empire's own notice of its EP437 withdrawal: the permit was not core to it and it saves about $600,000 by not funding its share of Dunnart-2. Its 35% goes to Key (76.92%) and Caracal (23.08%). Repeats Key's announcement.
5 Nov 2013drilling result▲ GoodMajor
The EP448 geochemical survey finished with nearly 300 samples. Key calls the preliminary results encouraging, with anomalies over the Griffiths prospect, the Garner and Walsh leads, and the Ambrose prospect. Key now plans to farm out shallow oil prospects for mid-2014 drilling.
24 Oct 2013drilling scheduled▲ Good
The regulator approved the EP448 geochemical survey, which began 24 October over 2,000 km2 by helicopter and vehicle. Environmental and well-site surveys for Walsh-1 and Ambrose-1 are under way. Heritage surveys for Year 6 cannot start until February 2014.
21 Feb 2013drilling result● Neutral
Cyrene-1 finished Goldwyer coring and logging, cased the hole, and drilled into the conventional Willara target to a total depth of 1,070m. The Willara top came in 20m deeper than forecast, with some oil shows. A flow test is planned to see whether hydrocarbons flow.
12 Feb 2013drilling progress report● Neutral
Cyrene-1 is coring the Goldwyer at 1,018m, with coring to finish at 1,023m. Wireline logging, 7-inch casing and then drilling to the Willara target follow. The next release will come after the Willara is evaluated, or on a material event.
11 Feb 2013drilling result▲ GoodMajor
Cyrene-1 cored the Goldwyer to 1,014m with further oil and gas shows. The managing director calls them 'extremely significant' and says they indicate the Goldwyer is in the oil generating window. Logging, then drilling to the conventional Willara target, follows.
8 Feb 2013drilling progress report▲ Good
Second Goldwyer core completed to 986m at Cyrene-1, with more oil and gas shows. Total gas averaged 10.1 units over the cored interval and reached 14.5 units at 985m. Third coring run to 994m is next.
6 Feb 2013drilling progress report▲ Good
First 9m of Goldwyer core cut at Cyrene-1 to 967m. Further oil shows in claystone cuttings, with background gas up to 5.6 units. Continues the oil shows first reported 4 February; coring carries on.
5 Feb 2013drilling progress report▲ Good
Rig is running in hole to begin coring the Goldwyer shale. The managing director says the oil shows match Hedonia-1, 160m away, and suggest the Goldwyer is in the oil generation window. Mostly repeats the 4 February shows.
4 Feb 2013drilling result▲ Good
Re-release of the same 4 February report: oil shows over 915-958m in the Goldwyer and lower Grant at Cyrene-1, with the Goldwyer top at 918m matching Hedonia-1. Coring of 54m is about to start. Duplicates the previous announcement.
4 Feb 2013drilling result▲ GoodMajor
Cyrene-1 reached the 958m coring point, with oil shows over a 43m interval (915-958m) in the lower Grant and Goldwyer. Key says this indicates an active source rock with possible unconventional oil or gas potential. Goldwyer top came in at 918m, matching Hedonia-1. Coring of 54m is next.
1 Feb 2013drilling progress report● Neutral
Cyrene-1 drilled ahead to 888m after the pump repairs, with background gas rising to 0.1-0.18 units in the lower Grant. The Goldwyer coring point is expected near 940m.
31 Jan 2013drilling progress report● Neutral
Mud pumps at Cyrene-1 are repaired and the rig is running back in the hole to resume drilling from 824m. No new results.
30 Jan 2013drilling progress report● Neutral
Cyrene-1 remains at 824m while mud pumps are repaired and the top drive serviced. Coring crew and equipment have been mobilised for the Goldwyer core at about 940m. A short delay, no new results.
29 Jan 2013drilling progress report● Neutral
Cyrene-1 reached 824m, with drilling paused for mud pump repairs. Gas readings in the Grant were low (0.01-0.02 units); the Hedonia-1 offset well showed none in the same section.
25 Jan 2013drilling progress report● Neutral
Cyrene-1 drilled 62m to 680m in the Grant Formation. Background gas rose slightly to 0.1 units. Still drilling toward the Goldwyer coring point.
24 Jan 2013drilling progress report● Neutral
Cyrene-1 reached 618m in the Grant Formation, with the Wallal and Grant tops matching forecasts. Only faint background gas (0.02 units) recorded. Drilling continues toward the Goldwyer coring point.
23 Jan 2013drilling progress report● Neutral
Cyrene-1 drilled to 442m, still in the Wallal Sandstone. No hydrocarbon indications, none expected at this depth. Next step is drilling to the Goldwyer coring point.
22 Jan 2013drilling progress report● Neutral
Cyrene-1 drilled to 346m on day one after the 21 January spud, reaching the Wallal Sandstone top at 295m. No hydrocarbons expected or seen at this depth. Key operates and holds 20% after farm-in.
21 Jan 2013drilling spud▲ GoodMajor
Drilling of the Cyrene-1 main hole began on 21 January 2013 after avoiding cyclone delays. Aims to core the Goldwyer at about 950m, targeting up to 5m barrels of conventional oil. Key operates and holds 20% after farm-in.
14 Jan 2013drilling scheduled● Neutral
Cyrene-1 main hole expected to start that week, possibly delayed by a cyclone. EP448 work commitment cut from 500km of seismic to pre-planning and a geochemistry survey, saving cost. Waugh-1 could follow Cyrene-1 on the same rig in first half 2013.
20 Dec 2012drilling progress report● Neutral
Cyrene-1 surface hole drilled and 9 5/8" casing cemented at 191m. Well to be suspended until the main hole starts in January 2013; target depth 1,060m. No hydrocarbons expected at this stage.
13 Dec 2012drilling progress report● Neutral
DCA Rig 7 is on site at Cyrene-1; a 175m surface hole and casing come first, then a pause until January for the main hole to 1,060m. Targets are Willara conventional oil (about 5m barrels if present) and Goldwyer shale.