Each one in plain English, with the numbers worked through for a shareholder.
1 June 2011capital raising announcement▼ BadMajor
The share purchase plan raised about $1.56m from 312,226,578 shares at 0.5 cents. This is not enough to fund Holdgate-1 in PEP 166, which is deferred until funds or a joint venture partner are found; a core hole, Yallourn Power-1, is planned instead.
What it means for a shareholder
312m new shares at A$0.005 to raise about A$1.6m. That's 5.2% dilution: every existing holder's slice gets 5.2% smaller. If you held A$1,000 of shares (200,000 at the issue price), your slice goes from 0.0035% to 0.00332% of the company. To keep it you'd need 10,936 more shares - about A$55 at the issue price.
3 May 2011capital raising announcement● NeutralMajor
Lakes offers existing shareholders a share purchase plan of up to $5,000 each at 0.5 cents per share, about an 8% discount to the five-day average price. Applications close 25 May 2011. No total target is stated.
March quarter report restates the new coal focus and the shallow core hole finding oil-generating shales. Beach's Wombat-4 fracture is now expected in Q3 2011, delayed by fracturing equipment demand. Wombat-2 test: 9 million cubic feet over twelve days; interpretation continuing.
Lakes' subsidiary Commonwealth Mining applied for two Latrobe Valley brown coal exploration licences, a new coal focus. A shallow core hole found shale generating oil, which Lakes calls significant. Holdgate-1 pad in PEP 166 is ready; drilling is subject to funding and a rig.
Half-year to December 2010: loss of $1,566,113, versus a $60,360 loss a year earlier, including a $190,033 investment loss. Reports Beach as PRL 2 operator, the Somerton deal, the PetroChina agreement and the Wombat-2 test. Wombat-4 fracturing planned later in 2011.
Beach recovered downhole gauges from Wombat-2 after the shut-in; the earlier two-week test averaged about 0.8 mmscfd from the 1,470m zone. Pressure data is being interpreted. This is the first activity under Beach's farm-in.
December quarter report: Beach took over operating PRL 2 and ran the Wombat-2 test (about 0.8 mmscfd). Lakes terminated the Latrobe Fuels PEP 166 agreement because Latrobe could not meet its obligations. Lakes plans to drill one well there in late Q1 or early Q2 2011.
Lakes lodged its Securities Trading Policy under Listing Rule 12.9. It bars insiders trading in the two weeks before quarterly reports. Administrative; no business substance.
Wombat-2 flowed about 0.8 mmscfd over twelve days on a 1-inch choke from its single fractured zone, now shut in for pressure build-up. Beach's share and Somerton's earn-in are now up to 33.3% and 16.7%. Lakes plans to terminate Latrobe Fuels' PEP 166 deal.
AGM presentation: 5.9bn shares including partly paid, price 0.6c, market cap about $34m. Cites PRL 2 gas in place of 1.68 tcf plus unquantified upside and a company-commissioned valuation of $104-217m. JV plans to fracture 9 Wombat-4 zones. Mostly known facts.
2010 annual report. The chairman calls the Beach farm-in the year's highlight: $10m for up to 15%, then up to 50% with a further $40m, matching about $50m Lakes has spent in PRL 2. Reviews Wombat-4 and the Latrobe Fuels deal. Largely repeats known facts.
September quarter report restates the Beach farm-in, the 210m share placement at 0.65c ($1.365m), the Somerton and PetroChina deals. Wombat-4 and Boundary Creek-2 fracturing planned late 2010 or early 2011 with Beach as operator; Wombat-2 flow keeps improving; Lakes workovers re-prioritised.
Lakes signed a research-exchange agreement with NWGI, a PetroChina subsidiary, to study Gippsland tight gas, including advanced seismic reprocessing using Lakes data. No money or equity is stated; it is a first step toward commercialisation.
Somerton Energy will earn up to 5% of PRL 2 from Lakes by funding 33.3% of fracture testing Wombat-2 and Boundary Creek-2, costing up to $3.33m. It can earn up to 16.7% total with a further $13.33m. Subject to final documents; Beach operates.
Statutory accounts for the year to 30 June 2010, with directors' report and corporate details. The excerpt is truncated and gives no financial figures. Board unchanged; Leslie Smith is CFO and Company Secretary after Raymond South retired on 1 June 2010.
Lakes placed 210m shares at 0.65 cents to raise $1.365m before brokerage, for current work programs. No shareholder approval needed.
What it means for a shareholder
210m new shares at A$0.0065 to raise about A$1.4m. That's 3.7% dilution: every existing holder's slice gets 3.7% smaller. If you held A$1,000 of shares (153,846 at the issue price), your slice goes from 0.0028% to 0.00269% of the company. To keep it you'd need 5,874 more shares - about A$38 at the issue price.
Lakes and Beach sign an unconditional $50m PRL 2 farm-in: up to 15% for $10m, then up to 50% total for a further $40m. Subject to Victorian government approval. Beach will use best endeavours to complete stage one within 12 months. Wombat-3 oil re-entry is added to stage one.
Amended Appendix 5B for the June 2010 quarter, changed for new disclosure requirements in Section 4. Cash at quarter end was $3.49m (cash on hand and at bank) and next quarter's planned outflow is $1.03m. Administrative amendment.
June quarter report: Gaffney Cline raised Wombat gas in place (P50) to 787 Bscf from 700 Bscf after Wombat-4. Beach agreement still awaiting signing. Wombat 2 and 3 workovers are reprioritised and the new southwest well may be delayed.
March quarter report restates the conditional Beach farm-in on PRL 2 and the Latrobe Fuels farm-in on PEP 166. Wombat-4 evaluation continues, with fracturing planned later in the year. Wombat-2 monitoring is paused due to hot, dry weather.
Beach's own release confirms the conditional PRL 2 farm-in: up to 15% for $10m in phase 1 and up to a further 35% for $40m in phase 2, with Beach as operator. Subject to documentation and regulatory approval. Repeats the Lakes announcement.
Lakes accepts Beach Energy's offer to earn up to 50% of PRL 2: 15% for $10m funding Wombat-4 and Boundary Creek-2 fracture tests, then up to 35% more for $40m. Beach would become operator. Subject to due diligence and Beach board approval.
Latrobe Fuels can earn up to 50% of a portion of PEP 166 by drilling up to two wells to 2,000m at its own cost, with the first to start by 31 December 2010. It also gets first right of refusal over Lakes' share of any production.
Half-year to December 2009: loss of $60,360, helped by a $1.47m investment gain, after raising $10.56m from rights and partly paid issues. In February 2010 the government refused the PEP 158 retention lease; Lakes is exploring appeals, with $2.74m of costs at risk of write-off.
December quarter report: Wombat-4 completed as a tight gas discovery, with Strzelecki and Latrobe tests flowing gas at unmeasured rates. Fracturing is planned later in 2010. Wombat-2 flows are still being monitored. Leslie Smith is now listed as CFO.
January 2010 shareholder update: Wombat-4 has 27 potential gas zones, with estimated 8.8 mmscf/d if all were fractured (about 3.4 for the best five). The chairman says over $50m has been spent in PRL 2. 2010 plan includes Wombat-4 fracturing in Q3. These are company estimates.
Wombat-4 is declared a tight gas discovery. Three Latrobe tests flowed small amounts of gas at unmeasured rates, and the Strzelecki (1,350-2,500m) appears gas saturated but will need fracturing to flow. Casing is being set for later fracturing. Oil and condensate are indicated.
AGM presentation repeating known material: Gaffney Cline resource figures (683 bcf 2C), Palliser valuation ranges and Wombat-2 re-frac. Shows 5.5bn shares on issue and a market value of about $44m at 0.8c. No new results.
Four Wombat-4 Strzelecki tests (e.g. 1,383-1,478m) all flowed gas at unmeasured rates. Consultants judge the whole 1,350-2,500m section gas saturated, but it will need fracturing. A Latrobe test at 1,171-1,174m gave a little wet gas before the tool failed.
