5 June 2024admin correction● Neutral
Metgasco re-issues its 3 June Odin-2 release at ASX request, adding 'sandstones', formation depths and maps. The results are unchanged.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
3 June 2024drilling result▲ GoodMajor
Odin-2 appraisal well successful: preliminary logs show gas pay in all three targets (11 m Toolachee, 3 m Epsilon, 45 m Patchawarra). The well will be cased and suspended as a future producer; gas could flow in winter, subject to JV approval. This resolves the Odin-2 drilling thread positively.
3 June 2024drilling result▲ Good
Operator Vintage reports Odin-2 found gas pay in all three target formations: preliminary net pay of 11 m Toolachee, 3 m Epsilon, 45 m Patchawarra. The well will be cased as a future producer. Gas could flow within winter, subject to JV approval.
31 May 2024capital raising announcement● Neutral
The share purchase plan closing date is extended from 7 June to 17 June 2024, with results now due 20 June. Administrative change to the A$0.005 SPP.
28 May 2024drilling progress report● Neutral
Odin-2 reached total depth of 3,172 m, with target formations as expected and gas shows in several formations. Wireline logs are needed to judge whether the shows are significant, so no result yet.
21 May 2024drilling progress report● Neutral
Vintage reports Odin-2 was drilling at 2,051 m in the Poolowanna Formation on 21 May, toward a planned 3,156 m. No new result; the well is on its 3-4 week timetable.
17 May 2024joint venture update▼ Bad
Vintage says the joint venture voted not to drill Odin-3 straight after Odin-2, preferring to assess Odin-2 results first. Vintage will keep pushing for it. This reverses the earlier hope of a back-to-back well, which was subject to JV approval.
15 May 2024drilling spud● Neutral
Metgasco confirms the Odin-2 appraisal well spudded on 15 May 2024, 1.1 km north-east of Odin-1, with a planned depth of 3,156 m and 3-4 weeks to drill. Metgasco holds 25%. First gas is targeted within 3 months of spud if successful.
15 May 2024capital raising announcement● Neutral
Cover letter for the placement and share purchase plan already announced on 10 May: about A$1m from ~200m shares at A$0.005, plus up to A$1.5m from shareholders (max A$30,000 each). SPP closes 7 June. Adds 2m broker options at 1c.
What it means for a shareholder
200m new shares at A$0.005 to raise about A$1.0m. That's 16% dilution: every existing holder's slice gets 16% smaller. If you held A$1,000 of shares (200,000 at the issue price), your slice goes from 0.0188% to 0.0158% of the company. To keep it you'd need 37,598 more shares - about A$188 at the issue price.
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15 May 2024drilling spud▲ GoodMajor
Odin-2 appraisal well spudded on 15 May 2024, 1.1 km north-east of Odin-1, with a planned depth of 3,156 m and 3 to 4 weeks to drill. If successful it would be tied in by a 1.1 km flowline. This follows the flood delays.
10 May 2024investor presentation● Neutral
Capital raising presentation for the A$1m placement and up to A$1.5m SPP at A$0.005, to fund Odin-2. Net cost to drill, complete and tie in is about A$2.2m, with first gas targeted 2 to 3 months after spud. It repeats the known 9.5 PJ Odin resource.
10 May 2024capital raising announcement▼ BadMajor
Metgasco raises about A$1m by placing about 200m shares at A$0.005, a 16.7% discount, plus a share purchase plan of up to A$1.5m at the same price. Funds go to the Odin-2 well and working capital. This is far below the 2c placement of October 2022, so existing holders are heavily diluted.
What it means for a shareholder
200m new shares at A$0.005 to raise about A$1.0m. That's 16% dilution: every existing holder's slice gets 16% smaller. If you held A$1,000 of shares (200,000 at the issue price), your slice goes from 0.0188% to 0.0158% of the company. To keep it you'd need 37,598 more shares - about A$188 at the issue price.
Create a free account to see this worked out for your own holding.
9 May 2024drilling scheduled● Neutral
Vintage says the rig has mobilised to the Odin-2 site, 1.1 km north-east of Odin-1. Spud is expected on or shortly after 12 May 2024, subject to rig acceptance and possible rain.
9 May 2024drilling scheduled● Neutral
Metgasco confirms Odin-2 spud is expected on or shortly after 12 May, with 3 to 4 weeks to drill. On success, first gas is targeted within 3 months of spud, sold under the existing Pelican Point contract. Weekly updates are promised.
30 Apr 2024quarterly activities report▼ Bad
March 2024 quarter: net sales revenue about A$670k, down 26% from A$902k, on natural decline and about 25% downtime. Odin-1 averaged 3.11 MMscfd. Odin-2 is planned for May, and the Keybridge loan was discharged on 11 April with A$1m of new investor funding.
23 Apr 2024drilling scheduled● Neutral
Vintage says site access to Odin-2 is restored and civil works are underway. Spud is now scheduled for late in the week of 6 May 2024, with 3 to 4 weeks of drilling expected. This continues the flood-related delay.
11 Apr 2024debt financing● NeutralMajor
Metgasco repaid Keybridge and cancelled its loan notes and options, ending the relationship while disputing the termination notice's validity. It raised A$1m from outside investors: 6 months, 12% a year, secured, with 8m options at 2.5c. Glennon's facility stays.
11 Apr 2024debt financing● Neutral
Keybridge Capital said the A$1.44m it advanced to Metgasco under the Loan Note Agreement, plus accrued interest, had been fully repaid as of 11 April 2024.
10 Apr 2024drilling scheduled▼ Bad
Vintage says flooding in the Cooper Basin has blocked access, so the Odin-2 appraisal well is now most likely to spud in May, about a month later than planned. Odin-1 and Vali-1 are producing in line with previous trends.
15 Mar 2024half year report● Neutral
Half-year to 31 December 2023: net production 0.13 PJ and sales revenue of A$1.25m, the first period with production. Odin-1 was online 75 days and Vali-1 160 days, with outages mostly third-party. Sustained gas from Vali-2 and Vali-3 is not yet established.
31 Jan 2024quarterly activities report● Neutral
December 2023 quarter: net sales revenue about A$902k, up 96%, as Odin-1 averaged 4.7 MMscfd gross. Vali-2 plugging cut water by 50% but yields only 0.2 MMscfd. Up to two Odin appraisal wells are being planned. Metgasco is in advanced talks on alternative funding.
13 Dec 2023well test result● Neutral
After the lower Patchawarra was plugged, Vali-2 came online 8 December. Fluid is down over 50% to about 100 barrels a day, but raw gas is only about 0.2 MMscfd. Vintage says there is insufficient data to project future performance.
28 Nov 2023investor presentation● Neutral
AGM presentation restating known facts: Vali first gas Feb 2023, Odin first gas 14 Sep 2023, a 25% interest in both, Odin contracts to 2026, and the Vali-2 water-isolation job due end-November. No new figures in the readable portion.
24 Nov 2023agm notice● Neutral
Following John Patton's resignation, director Peter Lansom will stand for election at the 28 November AGM under s.250R(1)(b) of the Corporations Act. The release gives his background. Administrative update.
24 Nov 2023debt default or forbearance● Neutral
Metgasco rejects Keybridge's termination notice as invalid, saying Keybridge has been in persistent breach and it has legal advice. It says it is funded into Q1 2024 and that any 2024 funding should be substantially non-dilutionary. It will not respond further.
23 Nov 2023director officer appointment▼ BadMajor
Metgasco says Keybridge is failing its obligations under the A$3m part of the A$5m loan facility, and has started mediation. Director John Patton resigned. Metgasco says it is funded into Q1 CY24. This contradicts the earlier picture of a fully available A$5m facility.
23 Nov 2023debt default or forbearance▼ BadMajor
Keybridge says it has loaned A$1.44m and pressed a termination notice, citing Metgasco's failure to get shareholder approval for the attaching options within 90 days. It demands repayment of A$1.44m plus interest within 90 days. Metgasco disputes this.
14 Nov 2023production update● Neutral
Vali-1 and Odin-1 restarted on 27 October after the downstream outage, about a week sooner than expected, with combined raw gas above 7 MMscfd. The Vali-2 water-shut-off job slipped from early November to end-November because of contractor equipment and crew availability.
31 Oct 2023quarterly activities report▲ Good
September 2023 quarter: net sales revenue A$460.6k, up 58% from A$292.85k. Vali-1 averaged 2.69 MMscfd and Odin contributed 9.8 days of production. About 26 days offline are expected in the December quarter from scheduled outages. A Vali-2 fix is planned.
17 Oct 2023production update● Neutral
Vintage says Vali-2 log analysis found the two lowest Patchawarra zones cause the excess water. A plug to shut them off is planned for early November, about 3 days of work. Vali and Odin are shut in for third-party maintenance until about 4 November. Odin has averaged 5.4 MMscfd.