Past year: ▲ 0%(1.00c – 1.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
15 Sept 2008drilling result● NeutralMajor
Neif Utara A-1 began producing 17 August 2008, now about 420 bopd, below its 640 bopd test. A-2 found the water contact, so reserves were trimmed to 12.3 MMbbl from 12.5; it tested 372 bopd at 12% water. Dawang-1 hit a potential gas zone and is suspended.
9 Sept 2008annual report● Neutral
2008 annual report confirms a loss of $2,959,470 and recaps the Gulf of Mexico sale and the China refinery evaluation (US$600,000). The extract shows nothing new beyond the 29 August preliminary results.
1 Sept 2008other● Neutral
Substantial holder notice: Wenmei Hu took up 11.34m rights shares, lifting voting power from 18.62% to 24.01%. No change in company operations.
29 Aug 2008annual report● Neutral
Preliminary results for the year to 30 June 2008: loss of $2.96m (versus $10.58m), revenue $2.69m, cash $7.24m. Net tangible assets are 23.23c per share. No dividend. The $2.1m borrowing is reflected in the cash flow.
27 Aug 2008capital raising announcement● NeutralMajor
Lion issued 33,571,400 shares at 6c on 27 August 2008, raising about $2.01m of the up to $3.66m sought. Shares on issue rise to 94.49m, with 31m options expiring August 2011.
What it means for a shareholder
33.6m new shares at A$0.060 to raise about A$2.0m. That's 36% dilution: every existing holder's slice gets 36% smaller. If you held A$1,000 of shares (16,667 at the issue price), your slice goes from 0.0274% to 0.0176% of the company. To keep it you'd need 9,184 more shares - about A$551 at the issue price.
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27 Aug 2008other● Neutral
Substantial holder notice: Jian Wu and Ling Gu took up their rights, lifting their combined voting power from 27% to 34.97% (33.05m shares). Wu is the chairman.
22 Aug 2008capital raising announcement● Neutral
The rights issue closed with acceptances for 33.57m shares, or $2.01m, against the up to $3.66m sought. 27.35m shares were left unsubscribed.
5 Aug 2008farm in farm out completion▲ GoodMajor
Papua Petroleum completed farmouts to Sasol, which will spend US$11.8m to earn 51% of licences PPL 285-288. Lion's 19.49% holding in Papua Petroleum gains a funded drilling partner, though Lion's own licence option has lapsed.
5 Aug 2008capital raising announcement● Neutral
Prospectus and entitlement forms for the 1-for-1 rights issue at 6c, up to about $3.66m, were posted on 5 August 2008. Administrative; no new terms.
29 July 2008quarterly activities report● Neutral
June quarter: Seram output was 353,605 barrels (3,886 bopd), slightly down. Neif Utara A-1 awaits government approval to produce; A-2 is drilling. The Papua Petroleum 19.49% purchase is the quarter's highlight.
25 July 2008material agreement termination▼ BadMajor
Papua Petroleum told Lion it met certain capital-raising conditions, so Lion's right to acquire a 10% or 50% interest in the PPU licences no longer exists. Only the 19.49% share stake bought in June remains.
17 July 2008capital raising announcement● Neutral
Administrative notice that rights issue letters were posted to shareholders, one version for Australia and New Zealand holders and one for others. No new terms.
15 July 2008capital raising announcement● NeutralMajor
Lion launched a 1-for-1 non-renounceable rights issue of up to 60.9m shares at 6c, raising up to about $3.66m. Closes 19 August 2008. This follows the A$2.1m director loan used for the Papua Petroleum stake; use of funds is not shown in the extract.
15 July 2008security holder rights change● Neutral
Cover note for a letter sent to option holders about the rights issue. The letter text is not readable in the extract, so no terms are known.
14 July 2008drilling progress report● Neutral
Neif Utara A-2, the appraisal well spudded 19 May 2008, reached 6,975 feet and logging is under way. It aims to find the oil-water contact to firm up reserves for the structure A-1 found (12.5 MMbbl). No result yet.
14 July 2008drilling spud● Neutral
Dawang-1, a shallow Seram well about 25 km southeast of the Bula oilfields, spudded on 13 July 2008. Planned depth is 2,133 feet, taking about 14 days, testing seismic anomalies like those at Bula. Lion holds 2.5%.
6 June 2008asset acquisition disposition● NeutralMajor
Lion agreed to buy 19.49% of Papua Petroleum for A$3m from a Liquefied Natural Gas Limited subsidiary, with options on 10% or 50% of its PNG licences. A$2.1m is funded by an interest-free loan from a director, a move into PNG exploration.
23 May 2008flow test result▲ GoodMajor
Neif Utara A-1 reached 7,315 feet and flowed about 640 bopd on pump with under 1% water, and was suspended as a future producer. Estimated reserves rose to 12.5 million barrels from 10.2. Appraisal well A-2 spudded on 19 May 2008.
30 Apr 2008quarterly activities report● Neutral
March quarter: Seram output was 356,059 barrels (3,913 bopd), down from the prior quarter. Neif Utara A-1 is still drilling. Nine-month loss is $2.05m, including A$1.44m of exploration impairment. Cash was A$8.26m.
24 Apr 2008drilling progress report● Neutral
Neif Utara A-1 was at 6,661 feet with 7 inch casing set just above the Manusela target at 6,705 feet. Drilling continues toward the planned 7,309 feet. No result yet.
17 Mar 2008drilling progress report● Neutral
Neif Utara A-1 reached 1,511 feet, with 13-3/8 inch casing cemented, and is preparing to resume drilling. Planned depth is 7,309 feet. No new result.
6 Mar 2008drilling spud● NeutralMajor
Neif Utara A-1 spudded on 28 February 2008 on the Seram block, targeting the Manusela Carbonate. Estimated reserves are 10.2 million barrels; well cost is US$6.33m, with Lion's 2.5% share expensed. This is the first Seram exploration well since the Gulf failure.
27 Feb 2008half year report● Neutral
Full half-year accounts for the period to 31 December 2007, confirming the $1.53m loss and the Gulf of Mexico sale and China refinery evaluation. Nothing new beyond the Appendix 4D released two days earlier.
25 Feb 2008half year report● Neutral
Half-year to 31 December 2007: loss narrowed to $1.53m from $8.81m, as the dry-hole costs of the prior period did not recur. Revenue rose 40% to $1.58m. Cash was $8.2m with no debt.
31 Jan 2008quarterly activities report● Neutral
December quarter: Seram output was 368,233 barrels (4,003 bopd). The Gulf of Mexico exit is complete and the China refinery study continues, with US$600,000 sent to a China subsidiary, unspent so far. 2008 Seram costs are forecast at US$2.3m.
27 Nov 2007agm notice● NeutralMajor
At the 27 November 2007 AGM, the diversification into a general resources company passed on a show of hands. The name change to Lion Group International was withdrawn and not put to the meeting. Other resolutions passed.
12 Nov 2007asset acquisition disposition● NeutralMajor
Lion sold its Gulf of Mexico subsidiary to Sterling Grant on 9 November 2007, ending its five-lease interest after the dry SMI 138 well. It keeps 50% of any future proceeds until sunk costs are recovered, and writes off about US$1.277m.
31 Oct 2007quarterly activities report● NeutralMajor
September quarter: Seram output fell again to 362,679 barrels (3,942 bopd). Directors now want to sell or farm out the Gulf of Mexico leases quickly, with an interested party in talks, and are investigating a China refinery, a shift from exploration.
23 Oct 2007agm notice● NeutralMajor
Notice of the 27 November 2007 AGM. Beyond routine items, shareholders vote on diversifying from an oil and gas company into a general resources company, and on renaming it Lion Group International Ltd. The auditor is also to be changed to Bentleys MRI Perth.
7 Sept 2007annual report● Neutral
The 2007 annual report confirms the $10.59m loss and the year's events, including the $10.66m rights issue at 0.35c per share before the 1-for-100 consolidation. It also lists Ridgelake and director-nominee options at 35c expiring 2011. The board is now three directors.
