Past year: ▲ 850%(0.20c – 3.50c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
15 Nov 2019farm in farm out agreement▲ Good
Vintage's side of the Cervantes deal: it earns 30% by paying 50% of a $5-7m well, targeting a spud in Q1 FY21, with Metgasco also at 30%. Gross best-estimate prospective resource is 15.3 MMbbl, 28% chance of success.
15 Nov 2019farm in farm out agreement▲ GoodMajor
Metgasco signs a binding term sheet with Jade and Vintage: Vintage funds 50% of the Cervantes well for a 30% interest plus $200k of costs. Metgasco's L14 interest falls to 30% and its cost exposure to 50%, confirming its right to drill (Q3 CY2020).
14 Nov 2019business combination● Neutral
Melbana says ASIC has granted relief so its extension to 13 December 2019 stands, addressing the validity concerns Metgasco raised on 8 November. Voting power is 20.79%, conditions remain, and accepting holders get one-month withdrawal rights.
12 Nov 2019drilling scheduled▲ GoodMajor
Metgasco confirms the Vali-1 rig contract, with spud expected mid-December 2019. It holds 25% free-carried, with net best-estimate unrisked prospective resource of 9.5 Bcf (38.1 Bcf gross) and 34% chance of success. Firms up the late-2019 timing.
12 Nov 2019drilling scheduled▲ Good
Operator Vintage signs a rig contract for the SLR-185 to drill Vali-1 in the ATP 2021 Cooper Basin permit in mid-December 2019. Vintage's best-estimate unrisked prospective resource is 17.6 Bcf net to it, with a 34% chance of success.
8 Nov 2019business combination● Neutral
Melbana replies that Metgasco's validity claims are under consultation with ASIC and that it is premature for either side to comment. It does not address the substance.
8 Nov 2019business combination● Neutral
Melbana notes that, because the extension postpones its obligations by over a month, shareholders who already accepted may withdraw within one month. Procedural notice following the 7 November extension.
8 Nov 2019business combination● NeutralMajor
Metgasco says Melbana's 7 November extension notice appears defective and the bid may not be validly extended. It cites acceptances of about 1.19% (excluding shares tied to Melbana's chairman) and still recommends rejecting.
7 Nov 2019business combination● Neutral
Melbana extends its offer again, now to 13 December 2019, with the conditions notice due 5 December. Its stated voting power is 20.78% and the offer stays subject to conditions.
6 Nov 2019business combination● Neutral
Metgasco's second supplementary target's statement again unanimously recommends rejecting Melbana's offer. Directors say they will not change view until Cuba shows binding farm-out, a formal Santa Cruz award and clarity on Beehive.
5 Nov 2019business combination● Neutral
Melbana's third supplementary bidder's statement attaches its Beehive announcement: Total declined its option and Santos's option becomes an 80% interest, funding the whole well, exercisable to 4 December. It urges acceptance; offer then closes 15 November.
5 Nov 2019business combination● Neutral
Metgasco responds to Melbana's Beehive news: Total has withdrawn and Santos has exercised its 40% option, now modified to 80% until 4 December. The board says this defers certainty on Beehive and still unanimously recommends rejecting the bid.
31 Oct 2019quarterly activities report● Neutral
September quarter report recaps the L14 Perth Basin option (decision due 15 November), the ATP2021 farm-outs to Vintage and Bridgeport, the SM74 settlement and Byron share sale, with Vali-1 now planned for December. Nothing new beyond known events.
29 Oct 2019security holder rights change● Neutral
Metgasco says the planned in-specie distribution of 30m Byron shares will now go to a general meeting in mid-December, not the 28 November AGM. Tax and legal advice, ASX approvals, an ATO private ruling and an independent expert report are still in progress.
29 Oct 2019annual report● Neutral
The 2019 annual report calls the year challenging, with Bivouac Peak (10%) and SM-74 (30%) both unsuccessful. It restates the ATP2021 farm-outs leaving Metgasco free-carried on Vali-1, the Perth Basin option, and the board's advice to reject Melbana's bid.
24 Oct 2019business combination● Neutral
Melbana extends its offer again, now closing 15 November 2019, with conditions status due 7 November. The notice states Melbana's voting power is 1.06%, against 20.42% reported on 15 October. Offer remains conditional.
24 Oct 2019business combination● Neutral
Supplementary target's statement: directors still unanimously say reject. They argue Melbana's Cuba and Beehive prospects remain uncertain, and that Metgasco's 2019-20 exploration is funded. The offer closes 1 November, subject to extension.
24 Oct 2019business combination● Neutral
Melbana re-issues its 24 October extension notice, correcting its stated voting power in Metgasco to 20.65% (the earlier notice said 1.06%). The offer still closes 15 November, remains conditional, and shareholders are again urged to accept.
18 Oct 2019business combination● Neutral
Directors again unanimously recommend rejecting the offer. They say the 1 November close falls before Melbana's Beehive farm-in option decisions, so shareholders cannot weigh that outcome. A supplementary target's statement is coming.
16 Oct 2019business combination● Neutral
Melbana's second supplementary statement extends the offer to 1 November and waives the breach from Metgasco's 8m Byron share sale. It disputes Metgasco's target's statement and urges acceptance ahead of the Beehive option decisions due by 4 November.
15 Oct 2019business combination● Neutral
Melbana extends its offer to 7pm on 1 November 2019. Its voting power is 20.42% and the offer still has conditions outstanding.
14 Oct 2019business combination● Neutral
Melbana says its shareholders approved the M&A Advisory participation, so that bid condition is fulfilled. Its voting power in Metgasco is 20.42%. Other conditions remain.
10 Oct 2019admin correction● Neutral
Metgasco confirms its target's statement was dispatched to shareholders on 9 October 2019. Administrative notice only.
8 Oct 2019business combination● NeutralMajor
Metgasco's formal target's statement unanimously recommends rejecting Melbana's offer, calling it wholly inadequate. It cites discounts of about 10-21% to recent trading averages and says shareholders should do nothing. This confirms the earlier take-no-action advice.
4 Oct 2019resource reserve update▲ GoodMajor
Independent assessor RISC puts mid-case prospective resources for Cervantes (L14) at 17.4 mmbo gross, 14% above Metgasco's estimate, and values the farm-in at $4.4-5.8m. Expected value is $28.4m net. Undiscovered, un-risked volumes; not reserves.
3 Oct 2019business combination● Neutral
Metgasco raises serious concerns that Melbana has not disclosed whether Cuban authorities approved changes to its Block 9 licence, a key bidder asset. It reiterates advice to take no action pending its target's statement.
3 Oct 2019regulatory community update● Neutral
Melbana (the bidder) says Cuban authorities approved extending Block 9 to 1 November 2020 and waiving other obligations; one well is still required. It tells shareholders to ignore Metgasco's announcement. This answers the concern Metgasco raised the same day.
3 Oct 2019business combination● Neutral
Melbana lodges a supplementary bidder's statement attaching its Cuba Block 9 approval and the one-month extension (to 4 November) for the Total and Santos Beehive options. It urges acceptance; the offer is still due to close 24 October.
1 Oct 2019agm notice● Neutral
Metgasco will hold its 2019 AGM at 10am on 28 November 2019 in Sydney. The notice of meeting is due in late October. Administrative only.
1 Oct 2019asset acquisition disposition▲ GoodMajor
Board proposes, subject to AGM approval and an ATO ruling, distributing 30m Byron shares in kind, about 1 per 13 Metgasco shares (about 2.8c each). That is about 70% of the holding; 12,333,383 shares are kept. It says this may breach a Melbana bid condition.
