20 Oct 2006capital raising announcement▲ GoodMajor
The full 3,046,124,356 rights issue shares were issued on 20 October 2006, doubling shares on issue to 6,092,248,712. This completes the $10.66m raise to fund the Gulf of Mexico push.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
11 Oct 2006capital raising announcement● NeutralMajor
Rights issue closed raising only $1,729,526 from 494,150,166 shares taken up by shareholders. The remaining 2,551,974,190 shares (about $8.9m at 0.35c) fall to the underwriter or sub-underwriters, as the offer is fully underwritten.
6 Oct 2006joint venture update▲ Good
Joint Operating Agreement with Ridgelake signed 6 October, satisfying the second of two conditions (with the 18 September Participation Agreement) for the rights issue to proceed before its 10 October close.
4 Oct 2006director officer appointment● Neutral
Russell Brimage was formally appointed Group Chief Executive Officer and remains an executive director. He had previously held the chair and CEO roles combined; the chair passed to Jian Wu the day before.
3 Oct 2006director officer appointment● NeutralMajor
Jian Wu, a Chinese petro-chemical refinery founder, was appointed director and Chairman on 3 October 2006. Russell Brimage stays as an executive director, so he is no longer chair.
27 Sept 2006annual report● Neutral
Annual report for year to 30 June 2006 shows a profit of $2,144,057 and no dividend. It confirms the Bula sale for US$4.85m and trading reinstated 7 March 2006. It notes the Ridgelake deal to earn up to 30% in five Gulf of Mexico leases.
25 Sept 2006capital raising announcement● Neutral
Lion has despatched the rights issue prospectus and entitlement forms, offering one new share per share held at $0.0035. Administrative notice only.
22 Sept 2006farm in farm out agreement▲ GoodMajor
Participation Agreement signed 18 Sept lets Lion's US subsidiary farm into Gulf of Mexico leases, a condition of the rights issue. Ridgelake Energy is to receive options, subject to shareholder approval.
13 Sept 2006annual report▲ Good
Year to 30 June 2006: revenue $13.4m (up 86%) and profit $2.16m, versus a $8.95m loss the year before, helped by the Bula sale gain. Cash was $4.94m. The reported figures show no dividend.
11 Sept 2006capital raising announcement● Neutral
Shareholder letter on the underwritten rights issue: up to 3.05bn shares at 0.35c to raise up to $10.66m, closing 10 October, underwritten by Intersuisse for $446,714. It would lift shares on issue from 3.05bn to 6.09bn.
What it means for a shareholder
3.05bn new shares at A$0.0035 to raise about A$10.7m. That's 33% dilution: every existing holder's slice gets 33% smaller. If you held A$1,000 of shares (285,714 at the issue price), your slice goes from 0.00469% to 0.00313% of the company. To keep it you'd need 143,039 more shares - about A$501 at the issue price.
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11 Sept 2006capital raising announcement● NeutralMajor
Prospectus for a one-for-one rights issue at $0.0035 per share, raising up to about $10.66m, to fund Lion's share of drilling five Gulf of Mexico leases. This is a strategy shift towards US exploration, with an independent report supporting the prospects.
6 Sept 2006production update● Neutral
July output was 6,887 barrels per day, but water breakthrough at Oseil-10 means a forecast decline. The CITIC and Gulf Petroleum deals await Indonesian approval, and Lion will review the 2007 budget before deciding to stay or sell. Lion bought a 5.54% stake in GulfX (Gulf of Mexico) and corrected earlier secondary-trading notices.
27 July 2006admin correction● Neutral
Quarterly report for the June 2006 quarter: crude output was 446,270 barrels (4,904 per day), with June at 5,943 per day after Oseil-11 came on line on 12 June. It noted CITIC's agreed 51% purchase and Gulf Petroleum Investment's 16.5% purchase of KUFPEC's interest.
27 July 2006quarterly activities report▲ GoodMajor
June quarter output rose to 446,270 barrels (4,904 per day) after Oseil-11 came online 12 June, ending Phase II drilling. Operator KUFPEC is selling 51% to CITIC for US$97.4m and 16.5% to Gulf Petroleum for US$44.5m.
26 May 2006joint venture update▼ Bad
The operator told Lion it preferred not to drill Dawang and Solan in 2026, and said that if Lion proceeded it would participate at its 97.5% equity. Lion called a 2.5% share unattractive, and noted the operator was tendering part of its stake.
10 Apr 2006joint venture update● Neutral
Lion presented its Dawang and Solan shallow prospects to the Seram joint venture committee on 23 March. If they are not added to the 2006 budget, Lion may drill them at its own risk or join as a partner.
15 Mar 2006half year report▲ Good
Half-year to 31 Dec 2005: revenue $1.72m (down 53%), net profit $363k including discontinued operations, versus a $877k loss a year earlier. Cash was $3.99m. Accounts were still being audited or reviewed.
15 Mar 2006half year report● Neutral
Full half-year accounts repeat the Appendix 4D figures (profit $363,069). They note 337m shares issued at 0.25c in Dec 2005 and 400m shares at 0.34c on 14 March 2006, and the Bula sale for US$4.85m.
21 Feb 2006other● NeutralMajor
Lion, suspended since 3 Aug 2005, says its board has been replaced (Brimage chair/CEO, Garner, Bennett) and its 2.5% Seram (Non Bula) interest is back in good standing after US$1.32m of cash calls. Bula PSC was sold for US$4.85m.