8 Nov 2006drilling progress report● Neutral
The Blackwood 2D survey is about 74% acquired and on schedule, with completion expected 9 November. Data quality is excellent. (The release's key point says '3D', but the text refers to the 2D survey.)
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
2 Nov 2006other● Neutral
Media background document recounting company history (Timor Sea Petroleum, Evans Shoal sale to Santos in 2001, Air Products 50% in methanol) and describing its projects. No new announcement or figures.
2 Nov 2006resource reserve update▲ GoodMajor
A study by consultant IPSA suggests Epenarra could hold at least 650 million barrels of in-place condensate, with 120-300 bbl/MMscf yields. P50 gas in place stays at 5.6 Tcf. Refines the earlier condensate estimates (about 675m bbl at 120 bbl/MMscf) with a consultant-backed range.
2 Nov 2006drilling progress report▲ Good
The CGG Duke began the 600 line km Blackwood 2D infill survey a week early, with about 8 days of acquisition expected. It should firm up the Blackwood-1 location. This continues the seismic program; the rig is due August 2007.
1 Nov 2006quarterly activities report● Neutral
September 2006 quarter: 3D seismic began 27 September, Blackwood 2D due November, and the West Atlas rig is secured for up to three 2007 wells. Methanol capital cost is now A$2.3bn. Gas supply for the projects is still unresolved; focus is on NT/P68 gas.
1 Nov 2006price query● Neutral
ASX queried a jump from 38.5c to 48c. The company said it knew of no unannounced information, cited the completed 3D survey, and noted unsolicited talks with large international firms. It argued a Nexus-Shell deal implies 78c a share for NT/P68 (company's own estimate).
31 Oct 2006drilling progress report▲ Good
The 500 sq km Epenarra 3D survey was completed on 30 October 2006, well within budget with no safety incidents. Data goes to Perth for processing to pick the Heron-2 location. The West Atlas rig is due after its August 2007 completion.
25 Oct 2006drilling progress report▲ Good
Epenarra 3D seismic is 84% acquired with excellent data quality. No other new information.
18 Oct 2006drilling progress report▲ Good
Epenarra 3D seismic is 62% acquired and ahead of schedule. The Blackwood 2D survey by CGG is now due in early November 2006.
12 Oct 2006annual report● Neutral
2006 annual report restates the year: strategy shifted from funding by farm-out to funding by equity, $16.5 million raised, Cambrian became a major shareholder, seismic began, and a rig was secured for up to 3 wells in 2007. Largely repeats known events.
12 Oct 2006agm notice● Neutral
Notice of the annual meeting on 10 November 2006. Items include re-electing Bisley and Dewé and granting 1,000,000 free options (50c, expiring November 2009) to each of five directors.
11 Oct 2006contract award▲ GoodMajor
Letters of intent secure the West Atlas jack-up rig for a minimum 12 months, shared with Coogee Resources. It is due at Heron-2 in August 2007 to drill two firm wells (Heron-2, Blackwood-1) plus an option for a third. This resolves the open rig thread.
11 Oct 2006drilling progress report▲ Good
Epenarra 3D seismic is 41% acquired and ahead of schedule. Data quality is excellent. Processing has started on board the vessel.
3 Oct 2006drilling progress report▲ Good
The 3D survey over Epenarra began 27 September 2006; about 19% of the 500 sq km is acquired and it is ahead of schedule. Condensate estimate at 120 bbl/MMscf is about 675 million barrels. A rig for Heron-2 is still being secured.
27 Sept 2006annual report● Neutral
Financial report for the year to 30 June 2006 shows a net loss of $1,108,168 (versus $653,393 for the half-year to December 2005). The company had 8 employees. Principal activities unchanged: the methanol and LNG projects and exploration.
15 Sept 2006capital raising announcement● Neutral
The rights issue was undersubscribed: valid applications were for 4,437,901 of 38,651,278 shares offered. The remaining 34,213,377 shares fall to the underwriter, Tolhurst Noall. The raising is still funded because it was fully underwritten.
15 Sept 2006investor presentation● Neutral
September 2006 presentation repeats known facts: Epenarra about 6 Tcf, over 800 million barrels condensate, 3D and 2D seismic, drilling Heron-2 and Blackwood-1 in Q4 2007. Shows 193.3m shares post rights issue. No new announcement.
4 Sept 2006resource reserve update▲ GoodMajor
A wetness study estimates Epenarra condensate-to-gas ratios of 120-300 barrels per million cubic feet. Using 150 and the 5,620 Bcf mean gas, in-place condensate is about 800 million barrels. This adds a liquids upside to the prospect; the Heron-2 rig is still being secured.
18 Aug 2006admin correction● Neutral
Administrative notice that the rights issue prospectus was posted on 17 August 2006. No new information.
15 Aug 2006contract award▲ GoodMajor
PGS Australia awarded the Epenarra 3D seismic contract, expanded from 410 to 500 sq km, starting 13 September 2006. The Blackwood 2D survey slips from September to late October. Drilling still planned for late 2007; Epenarra mean gas resource stays 5,620 Bcf.
4 Aug 2006capital raising announcement● Neutral
Prospectus lodged for the 1-for-4 rights issue at 22.5c to raise $8,696,537, with a free 25c option attached to each new share, expiring 30 April 2007. Fully underwritten by Tolhurst Noall; closes 11 September 2006. Formalises the terms already announced.
3 Aug 2006capital raising announcement● Neutral
Letter to shareholders restates the Cambrian placement (14,055,010 shares at 22.5c, about $3.16m) and the 1-for-4 rights issue (about $8.7m). Total raising is about $13m for seismic over NT/P68. Post-issue capital is about 193.3m shares. No new terms beyond known details.
What it means for a shareholder
14.1m new shares at A$0.225 to raise about A$3.2m. That's 6.8% dilution: every existing holder's slice gets 6.8% smaller. If you held A$1,000 of shares (4,444 at the issue price), your slice goes from 0.0023% to 0.00214% of the company. To keep it you'd need 323 more shares - about A$73 at the issue price.
Create a free account to see this worked out for your own holding.
1 Aug 2006quarterly activities report● Neutral
June 2006 quarter: farm-out talks stalled because terms required giving up a significant interest without securing gas supply. MEO instead turned to the Cambrian funding plan. 3D seismic over Epenarra is being planned. Project cost estimates were updated.
28 July 2006capital raising announcement▲ Good
The 1-for-4 rights issue at 22.5 cents (about $8.7 million, with attaching 25-cent options) is now fully underwritten by Tolhurst Noall. Blackwood 2D seismic starts around 15 September 2006.
20 July 2006investor presentation● Neutral
July 2006 presentation repeats the Cambrian-funded strategy, project cost estimates (methanol US$835 million, LNG US$988 million) and plans for two wells in late 2007. No new announcement beyond the raising.
20 July 2006capital raising announcement▲ GoodMajor
MEO places 10% of its shares with Cambrian at 22.5 cents (about $3.16 million), plus a 1-for-4 rights issue at 22.5 cents (about $8.7 million), totalling about $13 million. It funds 3D seismic over Epenarra, and MEO keeps 100% of NT/P68 instead of farming out. Drilling is planned for late 2007.
6 July 2006contract award▲ Good
MEO awarded CGG a contract for about 600 line km of 2D seismic in NT/P68 in September 2006. It targets the Blackwood lead, a large Plover structure, aiming to make it drill-ready.
27 Apr 2006quarterly activities report● Neutral
March 2006 quarter: the $1.6 million trustee share placement was completed, with shares unchanged at 140,450,105. MEO now views Heron-1 as an Epenarra discovery well and plans a second well. 3D seismic and a farminee are still needed first.
27 Apr 2006other● Neutral
Clarification that 5,289,740 shares moved from the former trustee, linked to ex-chairman Albers, to beneficial owners and a new trustee of the share plans. MEO restates its farm-out plan, with a second Epenarra well to be funded by the farminee.
17 Mar 2006half year report● Neutral
Re-lodgement of the half-year report to 31 December 2005, with the same content (net loss $653,393). No new information.