16 Mar 2017admin correction● Neutral
Amended LKOGA conversion notice: the uplift threshold is corrected from 2 cents to 0.2 cents per share. Terms are otherwise unchanged: 5,000 shares per note, up to 6,667.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
15 Mar 2017regulatory community update● Neutral
Lakes says it is well advanced in talks on information-sharing with other explorers, possibly including stratigraphic coreholes, to test its South Australian acreage, notably the Tindelpina Shale gas. No funding or drilling commitment is stated.
15 Mar 2017security holder rights change● Neutral
LKOGA notes mature 31 March 2017 and convert automatically into 5,000 shares each on 7 April, with a final 50c interest payment. Conversion can rise to 6,667 shares if the 30-day average price is under a threshold. The threshold is later amended.
14 Mar 2017half year report▼ Bad
Half-year to 31 December 2016: loss of $5.84m including a $3.98m write-down of US and Victorian assets. Net assets fell to $1.97m and working capital turned to a $229,299 deficit. Operating cash outflow was $1.47m.
13 Mar 2017other● Neutral
Routine notice of the final 50c per note interest payment on LKOGA notes, paid 7 April 2017 for the six months to 31 March. The notes mature that day.
22 Feb 2017capital raising announcement● Neutral
Lakes confirms the entitlement offer documents were posted to eligible holders on 22 February; offer closes 17 March 2017. Administrative notice with no new information.
15 Feb 2017capital raising announcement● Neutral
Notice to holders outside Australia and New Zealand that they are ineligible for the entitlement offer, as required by ASX rules. Their entitlements lapse into the shortfall. Administrative only.
15 Feb 2017capital raising announcement● Neutral
Letter to security holders restating the entitlement offer terms: 1-for-4, 0.2c, up to 6.3 billion shares, timetable to 24 March issue. Administrative notice with no new information.
14 Feb 2017investor presentation● Neutral
Presentation backing the entitlement offer. Repeats the 0.2c price, $1.5m underwriting, $2.7bn damages claim and Wellesley (41 Bcf) and Major East (13.8 Bcf) targets. Adds a use-of-funds table: $1.5m minimum, $12.6m target, and a 5 May 2017 directions hearing.
14 Feb 2017capital raising announcement● NeutralMajor
Lakes launched a 1-for-4 non-renounceable entitlement offer to raise up to $12.6 million, partly underwritten by DGR, each new share with a bonus performance right. Funds go to exploration, a loan repayment, litigation and working capital. Issue price not stated in the text.
14 Feb 2017capital raising announcement● NeutralMajor
Prospectus for the 1-for-4 entitlement offer at 0.2 cent per share, raising up to $12.6m, partly underwritten to $1.5m by DGR. Each share carries a bonus right converting to 1.25 shares if 60-day VWAP exceeds 0.8c before 2022. Closes 17 March 2017.
31 Jan 2017quarterly activities report● Neutral
December quarter report: NavGas completed 18 January 2017; Lakes is formulating plans to expedite drilling in ATP 1183. The judicial review trial is set for 1 June 2017, and the $2.7bn writ was filed. Victorian legislation introduced 22 November would extend the ban to mid-2020.
18 Jan 2017asset acquisition disposition● Neutral
Dark Horse says the NavGas sale has settled and it will receive 9,278,407,344 Lakes shares, in addition to its 40,000 Lakes notes. It repeats the Wellesley and Major East drilling plans. This is the vendor's view of the completed deal.
18 Jan 2017asset acquisition disposition▲ GoodMajor
NavGas acquisition completed on 18 January 2017 after shareholders approved it on 16 January, with 9.6 billion shares issued. Lakes now owns 100% of the Queensland and South Australian acreage and plans to drill Wellesley (~1,650 m) and Major East (~1,850 m) in ATP 1183.
17 Jan 2017other● Neutral
Lakes lodged its company constitution, prepared by Baker McKenzie. A legal document with no new financial or operating information in the text provided.
16 Jan 2017investor presentation● Neutral
AGM presentation sets out the 'reinvention': cost cuts, a non-Victorian focus via NavGas, the litigation and a specially structured capital raising. Plans to drill Wellesley (41 Bcf prospective) and Major East (14 Bcf). Mostly repeats known facts.
16 Dec 2016agm notice● Neutral
ASX granted waivers allowing the AGM notice to seek approval for up to 91,666,674 shares to six directors in lieu of $91,667 of fees, issued in 11 tranches from January to November 2017 at the higher of $0.001 or the one-month VWAP. Notice was sent today.
6 Dec 2016regulatory community update● NeutralMajor
Lakes and two subsidiaries filed a Supreme Court writ claiming over $2.7 billion damages from the Victorian Minister for 'derogation from grant', including $92m past spend and over $2.6bn risk-weighted lost future earnings. Funding talks under way. Adds to the 27 October judicial review.
29 Nov 2016capital raising announcement● Neutral
Lakes allotted $375,000 of shortfall LKOGB notes (37,500 notes), taking LKOGB notes to 139,799. Directors can still place the remaining shortfall within three months of the offer closing. Continues the notes raising that drew poor take-up.
28 Nov 2016asset acquisition disposition● NeutralMajor
Lakes signed the binding Share Purchase Agreement to buy the remaining 96% of NavGas for 9.6 billion shares, formalising the 6 October heads of agreement. Needs shareholder approval at the AGM; completion within 5 days. DGR also signed a conditional $1.5m underwriting of a rights issue, expected early 2017.
28 Nov 2016capital raising announcement● Neutral
DGR Global confirms it signed the underwriting agreement for $1.5 million of a Lakes entitlement offer, earning a 6% fee. It depends on the NavGas acquisition settling after the January 2017 AGM vote. Counterparty's version of the deal already announced.
28 Nov 2016asset acquisition disposition● Neutral
Dark Horse confirms it signed the Share Purchase Agreement to sell its 92.78% of NavGas (96% in total with two individuals) to Lakes for 9.6 billion Lakes shares. Subject to Lakes shareholder approval at the AGM in January 2017. This is the vendor's view of the same deal.
25 Nov 2016director officer appointment● Neutral
Karl Schlobohm appointed alternate director for Bill Stubbs from 24 November 2016 to 16 January 2017. He holds no Lakes securities. Temporary administrative appointment.
23 Nov 2016security holder rights change● Neutral
Letter to LKOGB noteholders reminding them of the first interest payment (50 cents per note, record date 30 November, paid 8 December 2016) and the option to convert early into 9,091 shares per note by 30 November. Reminder of known terms.
18 Nov 2016agm notice▼ Bad
AGM delayed again, now to be held on or before 13 January 2017, with ASIC approval. The delay is due to final approval of documents, including the independent expert report, for the NavGas vote at the same meeting.
18 Nov 2016dividend declaration● Neutral
First interest payment on the new LKOGB notes: 50 cents per note, record date 30 November, paid 8 December 2016. Routine, under the notes' existing terms.
27 Oct 2016regulatory community update● NeutralMajor
Two Lakes subsidiaries filed in the Victorian Supreme Court seeking judicial review of the Minister's refusal to consider onshore exploration applications. They argue the decisions were made without authority. Follows the legal action investigation announced on 8 September; no outcome yet.
26 Oct 2016quarterly activities report● Neutral
September quarter report: notes issued now total 102,299 after 9,367 redemptions and the 58,000 placement; directors can place unsubscribed notes until 9 December. Recaps the NavGas 4% purchase and 96% heads of agreement, and the DGR $1.5m underwriting.
19 Oct 2016other● Neutral
Lakes appointed DMR Corporate as independent expert on the NavGas acquisition. ASIC approved deferring the 2016 AGM to December so shareholders can vote on NavGas at the same meeting.
6 Oct 2016asset acquisition disposition● Neutral
Dark Horse's version of the NavGas deal: Lakes issues 9,600 million shares for the remaining 96%, aiming to complete before end-2016. DGR Global conditionally underwrites $1.5m of a planned follow-on capital raising for all Lakes shareholders. Needs Lakes holder approval.