Each one in plain English, with the numbers worked through for a shareholder.
26 Oct 2009annual report● Neutral
2009 Annual Report covers the year already reported: first 1P reserves, 2P 298 PJ and 3P 1,538 PJ gross, four new wells, $15.7m raised. Chairman says Kingfisher, the first deep conventional well, is being drilled about now. A production lease application has been lodged.
Kingfisher-E1 was drilling at 80m, with the 12 1/4 inch hole planned to 450m, then casing and a smaller hole to 950m and on to about 2,100m. No results yet. Restates OGIP of 82 Bcf (P50) and 831 Bcf (P10).
Rick Wood resigned as an Executive Director to retire, having joined as Operations Director in May 2004. The board will seek a replacement director. Earlier notices described him as moving to non-executive, so this removes him from the board.
Lucas Rig 150 is mobilising this week to start Kingfisher-E1, with site preparation complete. It is Metgasco's first deep conventional well in the basin, planned to 2,100m, 100% owned. Upper zones will be tested before drilling deeper.
2 Oct 2009asset acquisition disposition▲ GoodMajor
Metgasco agreed to buy Molopo's remaining interests in PEL 13 and PEL 426, giving it 100% of both permits (~4,900 km2). Price is $3m cash, $4m of Metgasco shares and a 2.5% royalty on 50% of PEL 13 conventional gas. Needs shareholder approval at the 26 November AGM and ministerial approval.
Molopo's side of the same deal: it sells its PEL 13 and PEL 426 interests to Metgasco for $3m cash, $4m in shares and a royalty, to focus on Queensland, Canada and South Africa. Conditional on Metgasco shareholder approval and ministerial consent. Confirms the Metgasco announcement.
ASX queried a share price jump from $0.465 to $0.68 on 30 September 2009. Metgasco knew of no specific reason, saying it is in talks on several potential transactions, none concluded. It noted a newsletter buy recommendation that day.
Audited FY2009 report restates known positions: 2P 264 PJ net, 1P 2.3 PJ net, PEL 13/426 farm-ins completed. The Richmond Valley power station development application was still unapproved at 30 June 2009. The Lions Way Pipeline environmental assessment is now expected to be lodged 'over the coming year'.
Kingfisher-E1 start slips to the week of 5 October 2009, from the late August/early September timing expected earlier. Lucas Rig 150 will drill to 2,100m, 100% Metgasco, about 2 km from Casino. Contingent resource of 36.6 Bcf (P50) is stated for the Riflebird-E14 sands.
Rodman & Renshaw conference deck repeating known facts: 264 PJ net 2P, 2.7 PJ 1P, Corella-11 at 200,000 scf/day, Kingfisher-E1 to be drilled in September 2009. Lists a $0.435 share price, $81m market cap and no debt. Nothing new.
Gas markets conference deck repeating known facts: 264 PJ net 2P, Corella-11 at 200,000 scf/day, Kingfisher-E1 due next month. Shows $0.44 share price, $81m market cap, 186m shares and about $15m cash.
Molopo's July monthly update, mostly on its own wells. For Wyan-E1 (Molopo 25%) it reports logging to 683m completed and the well suspended pending more testing to investigate the gas source. Nothing materially new.
Metgasco engaged Lucas Rig 150 to drill Kingfisher-E1 in PEL 16 from late August/early September, to 2,100m, about 25 days. It appraises the 2008 Riflebird-E14 discovery; unrisked gas in place is 82 Bcf mean, 831 Bcf P10. Approvals are in hand.
Corrects the earlier release: Corella-E17's free gas flow was 30,000 scf/day, not mcf/day. This is a unit correction that reduces the stated rate a thousandfold.
Corella-E17 reached 788m and flowed 30,000 scf/day unpumped, which Metgasco says fits expectations for a pilot like Corella-P11. Riflebird-E15's gas rates before dewatering are low and differ from Corella-E17, a more cautious result there.
Drilling began on Corella-E17, a sole-risk (100% Metgasco) vertical well to 750m, expected to take about a week, as offtake for a later horizontal pilot. Riflebird-E15's wellhead is installed for a long-term test.
Riflebird-E15 reached 757m, intersected the Walloon coals as predicted, and showed immediate gas flows to surface in a short test. A long-term production test will follow over the coming weeks.
Drilling began on Riflebird-E15 in PEL 16 (100% Metgasco), a vertical well to 750m expected to take about a week. It is planned as the vertical offtake for a later horizontal pilot well.
Wyan-E1 reached 702m and intersected the Walloon coals as predicted. Tests showed sustained gas flows above 160,000 scf/day, about 175,000 at the end, extending gas evidence into PEL 13. Net coal is not yet known and the well is suspended.
Molopo's monthly update, mostly on its own Queensland, South African and Canadian wells. For Metgasco's Wyan-E1 (Molopo 25%) it reports drilling at 404m of 700m target. Nothing new for Metgasco.
Drilling began on Wyan-E1, a vertical CSG exploration well in PEL 13, about 28km south-west of Casino, to 700m. It tests coal in the basin's western margin. Metgasco holds 75% and Molopo 25%.
Metgasco is starting its 2009/10 program: more CSG pilot wells to repeat Corella-11, the Kingfisher-E1 conventional appraisal well (2,100m, next quarter), exploration coring and reserve-expansion drilling. Wyan-E1 starts first. Kingfisher has 41 PJ contingent resource (mean), 914 PJ upside.
May investor update repeating known reserves (247 PJ net 2P). It shows a $0.60 share price, $100m market cap, 172.5m shares, $15m cash and no debt, and notes no reserves development drilling in FY2009.
Rights offer was 41% oversubscribed; 19,159,142 shares allotted on 30 April. Applications for extra shares were scaled back. This completes the roughly $15.7m raising.
Orara-E1 in PEL 426 (680m deep) flowed gas at up to 100 Mcf/day but rates fell in later testing, so it will be plugged and abandoned. Molopo took dilution, lifting Metgasco's PEL 426 stake from 50% to 56.6%.