6 July 2018asset acquisition disposition▲ GoodMajor
MEC lifted its Advent Energy stake from 47% to 50% by converting $472,000 of loans, owed after funding the April 2D seismic survey, into shares at 5 cents. Seismic data is still being processed.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
3 July 2018security holder rights change● Neutral
Updated capital structure after 950,000 options expired: 331,060,460 shares on issue (up from 271.9M after the rights offer), 2.4M employee options at 6c, and 59,114,729 new 4c options expiring 26 June 2020.
2 July 2018other▼ Bad
Grandbridge, led by David Breeze, took up rights shares, adding 4,873,681 to hold 14,621,043 MEC shares (4.4%), funded by a loan from Breeze. A substantial holder notice shows combined voting power of 11.48%, up from the ~6.2% requisitioning group.
26 June 2018other▼ Bad
MEC warns shareholders about a mailout from the 'Shareholder Interest Group' behind the 10 July requisitioned meeting, using the company logo and its own blue proxy form. The board calls it potentially deceptive and urges votes go to the registry or company.
13 June 2018regulatory community update▲ Good
Advent's subsidiary Onshore Energy received WA approval for its Safety Management System for well integrity work on Waggon Creek-1 and Vienta-1 in EP386. A preliminary step; any intervention or decommissioning still needs further approvals and funding.
8 June 2018auditor change● Neutral
MEC appoints Moore Stephens as auditor from the next AGM, replacing HLB Mann Judd, which resigned with ASIC consent. The company cites distancing from entities in dispute with MEC who are audited by HLB, and lower audit costs.
6 June 2018agm notice▼ BadMajor
Notice of general meeting for 10 July 2018 in Sydney, called on the 249D requisition from ~6.2% holders, to vote on electing three directors and removing all five. The board unanimously recommends voting AGAINST all eight resolutions and says Breeze is again associated.
4 June 2018capital raising announcement● Neutral
Rights offer closing date pushed from 7 to 15 June 2018 so shareholders who applied in the withdrawn April offer can resubmit. Allotment moves to 22 June; other terms unchanged.
17 May 2018other▼ BadMajor
MEC received a section 249D notice from holders of about 6.2% seeking to elect three new directors and remove all five current directors. The board disputes its benefit and is reviewing validity; the company must pay for the meeting. Continues the Breeze-linked board challenge.
16 May 2018listing compliance notice● Neutral
ASX lifted the suspension of MEC shares immediately after an announcement was released. This ends the suspension that began 10 May.
16 May 2018capital raising announcement● Neutral
MEC lodged a replacement prospectus for the 1 for 2 rights offer at 1.8 cents (free 4-cent options), now closing 7 June 2018. It adds disclosure on finances, litigation and the PEP11 sale vote timing; replaces the 8 May prospectus.
16 May 2018joint venture update● Neutral
PEP11 2D seismic processing has started and is due to finish in Q3 2018, then interpretation. Clarifies that after the RL Energy 3D farm-in, Asset would hold at least 25%, RL up to 60%, Bounty 15%; MEC shareholder vote to follow.
16 May 2018other▼ Bad
Faxed Form 603 substantial holder notice, sent via lawyers, shows an interest group holding 16,930,113 shares (6.23%) that is seeking to appoint new directors and remove all current directors. Part of the ongoing board challenge; text is badly garbled.
10 May 2018listing compliance notice▼ Bad
ASX suspended MEC shares from quotation immediately under Listing Rule 17.3. No reason is given in the notice; the company was also briefly suspended on 13 April.
9 May 2018capital raising announcement● Neutral
Letter to ineligible (non-Australia/NZ) shareholders repeats the 8 May rights offer: 1 for 2 at 1.8 cents with a free 4-cent option, up to ~$2.4M. Notes Asset's share of the PEP11 2D survey could cost $500-800K. No new terms.
9 May 2018capital raising announcement● Neutral
Letter to option holders repeats the 8 May rights offer: 1 for 2 at 1.8 cents with a free 4-cent option, up to ~$2.4M, not underwritten. Claymore has $100K irrevocable commitments. No new terms.
9 May 2018capital raising announcement● Neutral
Letter to eligible shareholders on the revised rights offer: 1 for 2 at 1.8 cents with a free 4-cent option valid two years. Prospectus to be sent 16 May. No new terms beyond the 8 May announcement.
8 May 2018capital raising announcement● NeutralMajor
MEC relaunched its rights offer under a prospectus: 1 for 2 at 1.8 cents, up to ~$2.4M, record date 11 May. The free option is now 4 cents, exercisable for two years, improved from 5 cents. Still not underwritten.
7 May 2018capital raising announcement● NeutralMajor
MEC withdrew its 13 April rights offer and will refund any application money received. A revised offer with improved option terms is promised within days.
4 May 2018farm in farm out agreement▲ GoodMajor
Asset Energy signed the conditional PEP11 farm-in with RL Energy, replacing the term sheet. RL carries Asset's share of a 500km2 3D survey up to $4M, earning 5% then a further 55%. Needs regulatory and MEC shareholder approval (independent expert report).
2 May 2018capital raising announcement● Neutral
Rights offer closing date extended from 7 to 16 May 2018 because some shareholders had not received forms from Australia Post in time. Issue date moves to 23 May.
20 Apr 2018capital raising announcement● Neutral
MEC despatched the rights offer document: 1 for 2 at 1.8 cents with a free 5-cent option, closing 7 May 2018. Same terms as announced 13 April; no new substance.
19 Apr 2018drilling result▲ Good
The PEP11 2D seismic survey (~200 line km over Baleen prospect, 30km SE of Newcastle) finished acquisition in three days, safely, meeting the Year 2 work commitment. Processing takes about two months, with interpretation to follow.
16 Apr 2018capital raising announcement● Neutral
Letter to ineligible (non-Australia/NZ) shareholders repeats the rights offer terms: 1 for 2 at 1.8 cents, up to ~$2.4M. Contains no new information.
16 Apr 2018capital raising announcement● Neutral
Letter to option holders repeats the rights offer (1 for 2 at 1.8 cents) and gives the maximum raise as $2,447,512. No new terms.
16 Apr 2018drilling progress report▲ GoodMajor
The PEP11 2D seismic survey started acquiring data on 16 April after a short sea-state delay. About 200 line km over the Baleen prospect, taking 3-4 days, it is designed to meet the Year 2 work commitment.
16 Apr 2018capital raising announcement● Neutral
Letter to eligible shareholders repeats the 13 April rights offer: 1 new share for every 2 at 1.8 cents, with a free 5-cent option. Up to ~$2.4M, not underwritten; 271,945,731 shares on issue. No new terms.
13 Apr 2018regulatory community update● Neutral
MEC says a letter sent to shareholders about PEP11 exploration was unauthorised and not from MEC. A response is on its website. The letter's content and sender are not stated.
13 Apr 2018listing compliance notice● Neutral
ASX lifted the suspension of MEC shares immediately after receiving a company announcement. Trading resumes the same day.
13 Apr 2018listing compliance notice▼ Bad
ASX suspended MEC's shares from quotation under Listing Rule 17.3, with no reason given in the notice. Reinstated later the same day, per a separate release.