Past year: ▲ 850%(0.20c – 3.50c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
22 July 2011regulatory community update● Neutral
Metgasco welcomes new NSW CSG rules (BTEX ban, fraccing moratorium to 31 December 2011, water licences, phasing out evaporation ponds). It says it uses no BTEX and no fraccing for CSG wells, so it is not affected. This addresses the earlier concern about CSG regulation.
19 July 2011capital raising announcement● Neutral
SPP closing date extended to 26 July after shareholder requests; allotment moves to 10 August. Non-executive directors will take up their full entitlements, and MD Henderson bought 300,000 shares on market at $0.305. The placement issued 23,846,153 shares.
What it means for a shareholder
300,000 new shares at A$0.305 to raise about A$91,500. That's 0.108% dilution: every existing holder's slice gets 0.108% smaller. If you held A$1,000 of shares (3,279 at the issue price), your slice goes from 0.00119% to 0.00119% of the company. To keep it you'd need 4 more shares - about A$1 at the issue price.
Create a free account to see this worked out for your own holding.
14 July 2011resource reserve update▲ GoodMajor
First certified reserves in PEL 13: 31.2 PJ 2P, 302.4 PJ 3P and 1,334.1 PJ 2C, from just two Bowerbird wells covering 21% of the licence. Total 2P rises to 428 PJ and 3P to 2,542 PJ. Resolves the expected June-quarter PEL 13 booking.
20 June 2011capital raising announcement● Neutral
Share purchase plan launched at $0.26, up to $15,000 per holder, capped at $21m in total; the price is about 11.5% below the five-day average. Closes 21 July. Funds go to Casino gas and 6MW power, PEL 13/426 drilling and Rosella E01. Follows the $6.25m placement.
17 June 2011investor presentation● Neutral
Investor update accompanying the capital raising: seeks about $21m via a non-underwritten placement at $0.26 (17.5% discount to the 14 June close) plus an SPP. Reserves restated (2P 397 PJ); cash $7.7m at 31 March, no debt. Largely repeats the 17 June raising.
17 June 2011capital raising announcement● NeutralMajor
Metgasco raised about $6.25m via a placement at $0.26 a share, well below the $0.45 plan price of 2010, with a share purchase plan of up to $15,000 per holder at the same price. Funds go to local gas supply, a 6MW first stage of the power station, PEL 13/426 drilling and the Rosella E01 well. Trading resumes.
14 June 2011material agreement▲ GoodMajor
Metgasco signed a non-binding MOU to supply gas to Richmond Dairies in Casino. A final agreement is expected by end 2011 and first sales by 3Q 2012, subject to approvals. It would be the company's first gas sale, though small in volume.
31 May 2011drilling progress report▲ Good
Harrier P01 and Corella P18 are both producing gas and water continuously, with gas restricted to dewater efficiently. Water sits 400m and 200m above the coal seam respectively. Management calls the signs positive for commercial rates, but no stabilised gas rate is yet reported.
25 May 2011investor presentation● Neutral
Citibank conference presentation restates known facts: 2P 397 PJ, first PEL 13 reserves expected soon, Harrier testing under way. Market value was A$82m at $0.33 and cash was $7.7m at 31 March 2011, down from $13.3m. No debt.
17 May 2011other● Neutral
Metgasco reported that the WorleyParsons LNG feasibility study found several economically attractive LNG options. At 1.5 million tonnes a year and $10/mmbtu, 20-year revenue would be US$29 billion, with first LNG possible in 2019 if appraisal began in early 2012.
17 May 2011other▲ GoodMajor
WorleyParsons study found three LNG options economically attractive: Gladstone, Port of Brisbane, or floating LNG off NSW. At 1.5 mtpa and US$10/mmbtu, revenue would be US$29bn over 20 years. Assumed schedule puts first LNG in 2019 if work starts early 2012.
9 May 2011resource reserve update▲ Good
Metgasco has sent its PEL 13 coal seam gas analysis to certifier MHA and expects to book first reserves there this quarter. No reserve figure yet. Currently no PEL 13 reserves are booked.
5 Apr 2011director officer appointment● NeutralMajor
Peter Henderson started as Managing Director and CEO this week, earlier than the May 2011 date previously advised. David Johnson, the founding MD, will continue as a consultant to the company.
30 Mar 2011drilling progress report▲ Good
Corella P18 was sidetracked to 861m MD with a 607m in-seam lateral and is producing about 30 barrels of water a day, with wellhead pressure above 100 psi. Harrier P01's first lateral is done at 1,229m, and the second lateral is at 1,150m.
14 Mar 2011half year report● Neutral
Half-year report to 31 December 2010 restates the period's activity: Thornbill, Bowerbird and South Casino drilling, 140 line km seismic, Kingfisher partial frac, and LNG work. Reserves are unchanged (2P 397 PJ). Financial statements are not in the text provided. Text truncated.
4 Mar 2011other▼ Bad
S&P index rebalance notice listing many companies. Metgasco (MEL) appears among the removals from the All Ordinaries, effective after close on 18 March 2011. A third-party index change, not company news.
1 Mar 2011investor presentation● Neutral
Conference presentation by the Managing Director largely repeats known facts. It does add that Mackellar North lead's gas-in-place estimate (P50) rose from 146 Bcf to 1,312 Bcf after the 2010 seismic. Market cap about A$100m at $0.38. Text truncated.
1 Mar 2011drilling progress report● Neutral
Harrier P01 and P02 have had top holes cased to about 145m. Corella P18, a single-lateral well, reached 861m and will be completed for production. The rig moves to Harrier P01 to drill two 1,000m laterals, the first of up to four pilot wells.
9 Feb 2011drilling spud● Neutral
Harrier P02, the first well of the multilateral coal seam gas pilot, spudded 8 February 2011 near Corella P11. It targets two 1,000m laterals. Corella P11 has produced 160,000-200,000 scf/day, the rate the new design aims to beat.
28 Jan 2011drilling scheduled● Neutral
Metgasco will begin drilling four multilateral coal seam gas pilot wells (Harrier P01-P03 and Corella P18) near Corella P11 next month. Each has two 1,000m laterals, the company's first dual-lateral wells, aiming for gas rates above Corella P11's.
22 Dec 2010other● Neutral
Updated securities trading policy setting out insider trading rules and blackout periods around results and quarterly reports. Administrative; no operational or financial news.
16 Dec 2010drilling progress report● Neutral
Kingfisher E01 will shortly go on a longer production test. Only about half the planned proppant was placed, yet gas flows encouraged the company. South Casino E11 found 19m of gassy coal and was plugged as planned. Harrier multilateral pilot drilling is expected next quarter.
1 Dec 2010drilling progress report● Neutral
The 2010 seismic program is finished, with 124 line km acquired, meeting work commitments in PEL 13 and 426. Kingfisher E01 is about 85% cleaned of frac fluid but the gas rate still cannot be measured. South Casino E11 spudded 29 November.
24 Nov 2010investor presentation● Neutral
Managing Director's LNG conference presentation largely repeats known facts: 4,620 km2 held 100%, 2P reserves of 397 PJ, and LNG feasibility work. Market value was about A$130m at $0.515. Cash was A$16.5m at 30 September. Text truncated.
17 Nov 2010drilling result▼ Bad
Thornbill E02 (PEL 426), drilled to 617m, gave only minor gas flows, which the company calls disappointing. Thornbill E01 was abandoned as planned. The 2010 seismic program restarted on 13 November, with 78 km of the planned 200 km done.
16 Nov 2010investor presentation● Neutral
AGM presentation by the Managing Director reviews the year: Kingfisher testing, Bowerbird and Thornbill drilling, and reserves. Looks ahead to a Kingfisher E02 well to about 2,700m, power station final investment decision in 2011 and LNG studies. Mostly restates known facts. Text truncated.
15 Nov 2010director officer appointment● NeutralMajor
Peter Henderson, a development manager at Premier Oil with 30+ years' experience, will become Managing Director around May 2011. Founding MD David Johnson stays until then and will consult afterwards. Pay is $400,000 a year. Marks a shift from exploration to production.
9 Nov 2010well test result● Neutral
Kingfisher E01's trial stimulation of a sandstone zone at 1,450m was completed 5 November. The reservoir responded and the well is returning gas, but the full proppant stage could not be completed due to operational issues. A flow test is expected the following week.
27 Oct 2010well test result▲ GoodMajor
Thornbill E01 in PEL 426, drilled to 846m, flowed gas immediately at an average 100 mcf/d over a 6-hour test, with no water and no CO2. It supports a 'dry' coal seam gas idea seen at Orara and Wyan. The rate is small and the test was short.
20 Oct 2010drilling progress report● Neutral
Drilling of Thornbill E01 (PEL 426) restarted after weather delays and had reached about 170m, targeting 850m. Thornbill E02 may follow if weather allows. A routine drilling update.
