New Standard Energy Limited

New Standard was removed from the ASX official list from close of trading on 26 August 2022 for not paying its 2022/23 annual listing fees. Its shares had been suspended since October 2019, and the announcement gives no information on any exit or trading arrangement for holders.

registration revoked

ASX lists New Standard among already-suspended companies that have not paid 2022/23 annual listing fees. Unless paid by 26 August 2022, it will be removed from the official list. This repeats the 2021 fee warning, which the company then evidently got past.

listing compliance notice

ASX lists New Standard among already-suspended companies that failed to pay annual listing fees for 2021/22. Unless paid by 27 August 2021, it will be removed from the official list.

listing compliance notice

The company chose not to renew EP481, which has expired, leaving it with no exploration permits. Unlike EP482, which DMIRS refused, this was the company's own decision. Rehabilitation of the old well sites continues.

regulatory community update

December quarter: a $400,000 placement at 0.6c was completed, lifting shares to 888.7m and cash to about $402,000. The rehabilitation site visit slipped to early 2020; shares stay suspended with no relisting date, and EP482 has lapsed.

quarterly activities report

ASX suspended the company's shares immediately. They stay suspended until it shows it can reliably estimate its rehabilitation obligations, has the financial capacity to meet them, and complies with Listing Rule 12.2.

listing compliance notice

DMIRS refused the renewal of EP482, so the permit has expired, leaving EP481 as the only exploration permit. This resolves the open EP482 renewal thread against the company. Rehabilitation continues and project talks are not yet disclosable.

regulatory community update

Completed a $204,134 placement of 34.0m shares at 0.6c to sophisticated investors introduced by the board. Funds are for new opportunities, DMIRS obligations and working capital. Shares on issue rise to 822.1m, after cash had fallen to about $64,000.

capital raising announcement

The regulator extended exploration permit EP481 to 15 August 2020, securing one of the two remaining permits. EP482's renewal is not mentioned in this announcement.

regulatory community update

Both permits stay valid while renewals are decided. The regulator has set rehabilitation deadlines for the historic wells of 15 August 2020 and 30 November 2019. This sets a firm timeline for the open rehabilitation thread.

regulatory community update

Completed a $429,851 placement of 71.6m shares at 0.6c to sophisticated investors introduced by the board, taking shares on issue to 788.1m. Funds are for new opportunities, DMP obligations and working capital. It follows the December 2016 rights issue at 0.4c.

capital raising announcement

The 2013 Precision Catering litigation against subsidiary NSO, claimed at about $1.2m, has been settled and dismissed. Terms are confidential but stated to have no material impact. This resolves a legacy liability.

other

Board overhaul: Kunfang Liu becomes chairman, with Ming Li, Chee Ho Ho and Peng Zhang as directors. Chairman Song, Han, Zhang and Bruce Li resigned. The new board will keep stabilising the company while seeking growth, and will go unpaid until its strategy is implemented.

director officer appointment

Xiaofeng Liu, an existing director with 26 years' oil and gas experience, becomes Managing Director, replacing Bruce Li, who stays as non-executive director and company secretary. A technical background now leads the company.

director officer appointment

The rights issue closed 20 December, raising $955,224. Shareholders took up only $83,542 and the shortfall offer $72,664, so Huizhou underwrote $799,018, about 84%. 238.8m shares are to be issued on 29 December. Funds are for working capital and reviewing opportunities.

capital raising announcement

Launches a 1-for-2 non-renounceable rights issue at 0.4c per share to raise up to $955,224, fully underwritten by Huizhou, an entity controlled by Chairman Song. This is the long-delayed rights issue, now at a 25% discount to the 30-day VWAP; it issues 238.8m shares. Non-participants are diluted.

capital raising announcement

Leadership turns over: Bruce Li Hua becomes Managing Director and Company Secretary, Zhang Dongbo joins the board, and Chairman Arthur Dixon and Thick resign. Song Hui (Huizhou) is chairman. Huizhou's review leads to EP481 and EP482 not being renewed. Rights issue approvals are still being finalised.

director officer appointment

Managing Director Phil Thick resigns effective 31 July 2016 to pursue other business, staying as non-executive director until 31 October 2016. The board will search for a replacement to pursue growth opportunities in oil and gas and other areas.

director officer appointment

December quarter: cash $634,000, no debt. Three Canning permits (EP417, EP443, EP450) were allowed to lapse; EPs 451, 456, 481 and 482 are kept, under DMP discussion. Rights issue timing is still being discussed and is now expected to raise up to $1m.

quarterly activities report

Huizhou placement completed: 91,442,400 shares issued at 1c, raising about $914,000 and lifting shares on issue to 477.6m, with Huizhou at 19.15%. Huizhou can appoint up to two directors; six-month standstill applies. Resolves the 24 November agreement.

capital raising announcement

Chinese company Huizhou Energy signs to buy 91.4m shares at 1c ($914k), becoming largest holder with 19.15%, followed by a 1-for-3 rights issue of up to $1.6m that Huizhou underwrites. Huizhou is to help find a farm-in partner for the Western Australian assets; no guarantee given.

capital raising announcement

Magnum Hunter, the largest shareholder since the 2014 alliance, sold its 65.65m shares to Jara Resources. Directors Kip Ferguson and Jeffrey Swanson resigned, ending Magnum Hunter's involvement and leaving three directors.

director officer appointment

The Sundance sale completed after shareholders approved it at the 4 August meeting. New Standard received 6m Sundance shares, part escrowed up to 6 months, and all its debt is eliminated. It is left with the Western Australian permits and a strategic review.

asset acquisition disposition

New Standard agrees to sell its US and Cooper Basin assets, including Eagle Ford and its 17.5% of PEL 570, to Sundance for about A$24m: six million Sundance shares (~A$3.18m) plus assumption of ~US$16m debt. This clears all debt, leaving the WA acreage. Shareholder vote due late July.

asset acquisition disposition

Credit Suisse releases a further US$3m from its facility as interim working capital while New Standard pursues corporate transactions, joint ventures or asset sales. No deal is yet binding. A 12-month extension on a large Texas lease is in final negotiation.

debt financing

Production is now 250-300 boepd, down from 400 last quarter, and fracking of the two new wells is pushed back again. Staff cut to four, directors' fees suspended, MD salary halved, Chris Sadler resigns. Funding talks are said to conclude within two weeks; lenders back interim funding.

other

Independent report lifts net Eagle Ford 2P reserves 83% to 4.89m BOE, with 2P PV10 of A$72.3m; 1P up 133% to 3.58m BOE, 3P up 33% to 16.45m BOE. Credit Suisse confirms the next debt draw is available. Builds on January 2014 reserves.

resource reserve update

Peeler Ranch-7H spuds 25 October, followed by Lagunillas Camp #3. The program is cut from three wells to two, with fracking delayed to Q1 2015 because of lower oil prices. Liquidity of up to $16m is expected through Q1 2015. Changes the earlier three-well plan.

drilling spud

New Standard sells a 35% operated stake in PEL 570 to Santos, keeping 17.5%, for $7.5m cash plus Santos funding 75% of the remaining $42.5m earn-in commitments. Net spend could fall to as little as $3.05m. Santos becomes operator, replacing the earlier 52.5% position.

farm in farm out agreement

New Standard takes back 100% of the Southern Canning Project from ConocoPhillips and PetroChina for nil consideration, removing a 10m+ third-well obligation. It has hired Miro Advisers to farm out all WA acreage. Reverses the 2013 PetroChina deal and the 25% JV structure.

farm in farm out agreement

New Standard plans three Atascosa wells from mid-October 2014, with longer laterals and more proppant. It says well cost fell from US$8.5m to US$6.5m, and Type III wells could cost 10-15% more. Net acreage is now 5,585. Continues the 2H 2014 drilling plan.

drilling scheduled

South Australia's regulator approved a six-month suspension of all PEL570 work commitments and moved the seismic survey from September 2014 to March 2016. This cuts New Standard's Cooper Basin spending for about 12 months, with drilling now in Year Two. Follows the earlier request to revise the program.

regulatory community update

Southern Canning JV delayed Brooke North-1 until late 2015 because approvals were not in time for this wet season. New Standard defers all Canning and Carnarvon drilling to 2015 and is renegotiating the Enerdrill contract. Reverses the 2014 drilling plan; Condon-1 timing is implied to move.

regulatory community update

New Standard finalised a Credit Suisse senior secured facility, up to US$45m (up from the US$32.5m term sheet), with US$9m drawn initially. Interest is 13% a year, initial term 2.5 years, with 80% of oil hedged. Resolves the March term sheet.

debt financing

Peeler Ranch-5H and 6H flowed at 705 and 758 boepd over 24 hours (1,463 combined), 93-94% oil. Company says oil output beats the 2013 Peeler-4H (735 boepd, more gas). First operated Eagle Ford wells meet expectations; two more wells planned for 2H 2014.

flow test result

New Standard agreed a term sheet for a senior secured debt facility of up to US$32.5m over two and a half years: US$12.5m initially, plus US$20m tied to Peeler Ranch-5H and 6H results. Closing depends on due diligence and documents. Follows the facility under negotiation.

debt financing

Magnum Hunter's Kip Ferguson joins the board as a non-executive director, as flagged at completion of the Eagle Ford deal. Founding director Dr Mark Hagan resigns, and Sam Willis returns as an executive director.

director officer appointment

New Standard completed buying 5,182 net Eagle Ford acres from Magnum Hunter on 28 January 2014, issuing 65.65m shares as part payment. Magnum Hunter is now the largest shareholder and the alliance starts. A credit facility is still being negotiated. Resolves the December 2013 deal.

asset acquisition disposition

New Standard spudded Peeler Ranch-5H on 26 January 2014, its first Eagle Ford well, operated by Magnum Hunter. Expected to take about 20 days to reach 2,950m vertical depth with a 1,735m lateral; the rig then moves to the 6H well. Meets the lease spud deadline noted earlier.

drilling spud

After shareholders approved all resolutions on 20 January, New Standard completed buying Outback Energy Hunter and Pathfinder (15m shares issued to vendors) and exercised the Eagle Ford option: US$15m cash plus US$9.5m in shares (65.6m) to Magnum Hunter. Completion expected the following week; Kip Ferguson joins board.

business combination

Independent report certifies Eagle Ford 3P reserves of 12.3 million barrels of oil equivalent on the 5,182 acres being bought, about $2 per barrel of 3P. 2P oil is 1.88 million barrels. 61 drilling locations identified; EGM set for 20 January 2014.

resource reserve update

New Standard will buy 5,182 net Eagle Ford acres in Texas from Magnum Hunter (five producing wells, US$5,300 per acre headline) and farm into 52.5% of Cooper Basin PEL 570 by spending $42.5m. Magnum Hunter becomes largest shareholder. Shareholder vote planned January 2014; a shift from pure exploration toward production.

business combination

Condon-1 at Merlinleigh is pushed from early December 2013 to the second half of 2014, by agreement with Enerdrill, so about $13m can go to two Eagle Ford wells first. This reverses the earlier December spud plan; the company says no large extra costs arise.

drilling scheduled

New Standard lifts its EP417 interest in the Laurel Project from 65% to 100% by taking Buru Energy's 35% for nil consideration. With Seven Lakes, net Laurel acreage is 1.46m acres. Buru said the 2014 commitment well is not a priority; New Standard still plans a farm-out.

asset acquisition disposition

PetroChina has Chinese and Australian approvals and has paid ConocoPhillips for 29% of the Canning joint venture; only Western Australian registration remains. Interests will be ConocoPhillips 46%, PetroChina 29%, New Standard 25% (valued about A$28m). Goldwyer Project renamed Southern Canning Project.

farm in farm out completion

New Standard signed with Enerdrill for Rig #3: a firm two-well program plus options for two more. Drilling restarts with Condon #1 at Merlinleigh in late 2013, then 1-3 Canning wells from mid-2014. Merlinleigh seismic is deferred and a farm-out process begins. Cash $41.5m.

contract award

Non-executive director Phil Thick becomes Managing Director from 2 April 2013, replacing Sam Willis, who stays on as a director focusing on strategy and corporate matters. Follows the rig contract termination. Thick gets 2m options (40c and 50c) subject to shareholder approval.

director officer appointment

Green Rock Energy announced it is selling New Standard its 15% of EP417 and 40% of Seven Lakes for A$1.65m: A$1m upfront, A$650k later. This returns New Standard to full ownership of Seven Lakes. EP417 stake size afterwards is an inference: 65% plus 15%.

asset acquisition disposition

Scoping study supports Merlinleigh's conventional and unconventional potential. About $3m will fund up to 150km of new 2D seismic in mid 2013, ahead of a planned 1-2 well drilling program in 2014 and a farm-out process targeted for the second half of 2013. Company holds 100%.

regulatory community update

PetroChina is set to buy 29% of the Goldwyer joint venture from ConocoPhillips, leaving ConocoPhillips 46% and New Standard 25% as operator. The deal values the project at about US$100m and New Standard's stake at about US$25m. Subject to approvals and New Standard's pre-emptive rights.

farm in farm out agreement

New Standard terminated the drilling contract with MB Century over safety, competency and rig reliability concerns, backed by an independent audit. Gibb Maitland #1 is suspended and the rig demobilised. The ConocoPhillips farm-in stays on foot; a replacement rig is being sought. Company says permit tenure is not at risk.

material agreement termination

Gibb Maitland #1 spudded 5 December on EP450, the second Phase One Goldwyer well after Nicolay #1. It targets a central Kidson sub-Basin setting with about 65 days planned, to gather data only, with no flow testing planned. Company holds 25%, ConocoPhillips 75%.

drilling spud

New Standard sold its remaining 10 million Buru shares at $2.74 for $27.4m before costs, following the 5m sold in August at $3.18. Cash rises to over $65m, which the company says supports expanding its oil and gas activities.

asset acquisition disposition

Nicolay #1 was drilled to 3,564m, deeper than the 3,450m plan, to cover the whole Goldwyer. Gas shows faded below ~3,350m, with no heavier hydrocarbons seen. Limestone was thicker than expected. Significance awaits logs and lab work; rig moves to Gibb Maitland #1.

drilling result

Nicolay #1 cut its first Goldwyer core, 54m with 100% recovery, from 3,150m. Gas readings (methane to propane) began from about 2,850m and desorption confirms gas, but the company says significance is unknown until detailed analysis over coming months.

drilling result

Nicolay #1, the first Goldwyer Phase 1 well, spudded on 18 August after the delay, targeting about 3,450m (deeper than the earlier 3,200m). Drilling is expected to take about 55 days, with coring and logging only, no fracturing or flow testing.

drilling spud

Merlinleigh's two exploration permits are granted after a native title agreement with the Gnulli group, resolving the open permit and native title thread. NSE holds 100%. Partnering assessment follows in H2 2012, with on-ground exploration in 2013.

regulatory community update

NSE sells 5m of its 15m Buru shares at $3.18 for $15.9m before costs, lifting cash above $40m. It bought them at 17c in 2009. It keeps 10m Buru shares, and cites capital management and funding for Merlinleigh partnering.

asset acquisition disposition

Technical review of the 100%-owned Merlinleigh Project cites potential gas in place of up to 33 TCF unconventional and up to 1.2 TCF conventional across four prospects. These are potential figures, not booked resources. Native title talks are advanced; partnering to be assessed in H2 2012, drilling planned H1 2013.

resource reserve update

Goldwyer Phase 1 stays on track: Nicolay #1 (EP456, about 3,200m) is the first well, with a July 2012 spud intended. ConocoPhillips' cap rises to US$13m per well (US$39m total); NSE funds overruns and 25% of about US$5m of studies. Conditions precedent are now met or waived.

joint venture update

NSE agrees to buy up to a 15% stake in ASX-listed Elixir Petroleum, which holds the Moselle Project in France, for up to about $2.25m. The initial placement is at 6.25c per share. A new, early-stage exploration exposure outside Australia and Texas.

asset acquisition disposition

NSE secures MB Century Rig #14 for a five-well program over 2012-13, with options on up to six more wells. Goldwyer Phase 1 drilling (three wells, funded by ConocoPhillips) is set for mid 2012; two Merlinleigh wells are planned for early 2013, subject to permits.

contract award

First 2P reserves booked for Heintschel: independent D&M assessment gives gross 33.7 BCF wet gas and 0.96 MMBO, with 124.55 BCF wet gas and 3.56 MMBO in place. NSE favours horizontal wells over more vertical ones. Final D&M report still awaited.

resource reserve update

NSE launches a $27.0m raising at 30c: a $23.0m placement (29.0m shares for $8.7m now, 47.7m for $14.3m needing shareholder approval ~1 Dec) plus a $4.0m share purchase plan. Funds Merlinleigh and other WA shale and tight gas projects. Pro forma cash ~$30m.

capital raising announcement

Lawford #1 stopped at 2,690m, short of the 2,780m plan, to be logged and plugged without reaching the Laurel Formation, which lies deeper than modelled. No significant shows. The deepening meets EP417 work commitments; more studies planned over 12 to 24 months.

drilling result

NSE signs a binding farm-out: ConocoPhillips funds up to US$109.5m over four phases to earn 75% of Goldwyer, leaving NSE 25%, plus A$1m upfront. Three wells planned in 2012; it formalises the July heads of agreement. Subject to regulatory approvals; ConocoPhillips can withdraw each phase.

farm in farm out agreement

Lawford #1 deepening began 27 Sept from 1,323m toward 2,780m, ~13 days. NSE (65%, diluting to 50%) estimates over 500 Bcf gas in place; it does not expect free flow. Green Rock's final $200,000 back-cost payment is triggered, as the September spud planned.

drilling spud

Century Rig #7 is secured to deepen Lawford #1 in EP417, spudding mid-late September, to about 2,800m (earlier plan ~2,600m). Buru runs the rig. Green Rock owes a further $250,000 now and $200,000 at drilling start. NSE first Australian drilling in almost three years.

drilling scheduled

NSE is offered the Seven Lakes Special Prospecting Authority next to EP417, expanding its Laurel Project by about 87% to 1.46m gross acres. NSE would hold 60% and Green Rock 40% under the March agreement, each paying its own share. First acreage under that agreement.

regulatory community update

NSE signs a non-binding heads of agreement for ConocoPhillips to fund up to US$109.5m over four phases to earn 75% of the Goldwyer Project, leaving NSE 25%, plus A$1m upfront. Binding agreements targeted by 30 September 2011; this follows the failed earlier partnering search.

farm in farm out agreement

NSE sold 3m of its 18m Buru shares at 67c for $2.01m (bought at 17c), lifting cash above $4m. It keeps 15m shares (8.2%) and says this avoids further raisings for now.

asset acquisition disposition

Arthur Dixon AM, a Shell veteran with over 20 years in LNG, is appointed non-executive chairman. Ian Paton moves back to being a non-executive director. Mr Dixon is named for development expertise as NSE pursues shale gas.

director officer appointment

Joann #1 is producing about 1.58 mmcf/d gas and 80 bbl/d condensate on a restricted choke, a higher condensate ratio than the 38 bbl/d seen in the 2010 test. NSE's 33.68% share is about $120,000 a month at stated prices.

production update

Green Rock Energy farms into EP417: pays $750,000 back costs, funds 27.5% of Lawford #1 deepening and earns 15%. NSE falls from 65% to 50%, keeps operatorship, and gets a funded well in Q3 2011. This follows the earlier 2008 suspension at 1,325m. A 60/40 mutual-interest deal is also signed.

farm in farm out agreement

Operator AKG lifted Heintschel mid-case estimates to 209 bcf gas and 8.7 mmb condensate in place (projected recoverable 93 bcf, 3.9 mmb), up from earlier recoverable 58.9 bcf and 1.07 mmb. Three wells produce 3,250 mcf/d and 125 bbl/d, about $195,000 a month net to NSE. Independent reserves audit planned.

resource reserve update

Initial flow-back on D.Truchard #1 and Heintschel #2 reached commercial rates: 1 to 1.7 mmcf/d gas plus 20-60 barrels of condensate. Both made more water than expected. Rates are preliminary and not stabilised. Joann #1 tie-in slipped to about two weeks.

flow test result

Heintschel #2 logs show a significant hydrocarbon column in the Prairie Bell sands, in line with pre-drill expectations, with no gas/water contacts and extra sands below. It will be completed, with fracs on D.Truchard #1 and #2 around 24/25 January. Joann #1 is due on production by end-January.

drilling result

NSE will not conclude a Goldwyer partnership deal for now, missing its year-end target. Large companies cited technical uncertainty from early-stage permits and a limited database. NSE will do more studies in Q1 2011. Aerial gravity (>13,000 km) is complete and EP450/451 relinquishment was revised.

farm in farm out agreement

D.Truchard #1 logs show hydrocarbons across over 300 ft (~90 m) of Wilcox sands, with no gas/water contacts evident and sands higher than prognosed. Partners will complete it, with fracs in late January. First appraisal success for the Heintschel structure, though flow tests are still to come.

drilling result

Burleson reports D. Truchard #1, the first Heintschel appraisal well, has spudded 2.9 km from Heintschel #1. It targets about 11,800 ft and should take about 28 days. It is estimated to cost US$1.1m dry, plus US$1.5m to complete. NSE holds 32.5%.

drilling spud

A rig is contracted for two Heintschel wells: D. Truchard #1, a step-out 2.9 km from Heintschel #1, spudding around 18 November, then offset well Heintschel #2, 370 m away. Fracs are expected late December 2010 and early February 2011. Cash is about $6m.

drilling scheduled

After the frac, Heintschel #1 is stabilised at about 2.4 mmcf gas and 100 barrels condensate a day to sales on a restricted choke. That compares with 1.0-1.4 mmcfd before the frac. Condensate ratio is nearly double earlier tests, and appraisal and development wells are now planned.

production update

The Heintschel #1 frac was completed and the well is flowing gas and condensate at good rates while it cleans up. It is expected to go to sales next day. Definitive rates are not yet known, but early signs are encouraging.

well test result

NSE awarded a contract for over 13,000 line km of aerial gravity data across its Goldwyer shale acreage, taking about 10 weeks and due by end 2010. It meets the revised permit commitments and will guide 2011-12 drilling. Earlier plans said 6,000 km.

contract award

Operator AKG estimates Heintschel contingent recoverable resources of 59 Bcf gas and 1.1m barrels condensate (mid case; range 25.6-88 Bcf). NSE says this could mean over A$100m net revenue, undiscounted, if developed. Frac likely September; more drilling expected from October.

resource reserve update

NSE is raising $6.5m: a $4.5m placement of 31.0m shares at 14.5c, plus a $2.0m share purchase plan underwritten by Euroz. Funds go to Australian shale exploration, US drilling and working capital. Tranche two ($2.5m) needs shareholder approval. This addresses the thin cash position.

capital raising announcement

Joann #1 flowed 2.1 mmcfd of gas plus about 38 barrels a day of condensate from one 3 ft zone, confirming a discovery: the third success in four Colorado County wells. Three other zones are untested. NSE's interest is 33.68%.

flow test result

Heintschel #1 flowed gas at 1.0-1.4 mmcfd from a 4 ft zone below the 225 ft gas column, without fraccing. The main 225 ft sands are still untested. NSE sees a larger structure than mapped; it holds 32.5%. Cash about $1.5m.

flow test result

Moeller #1 initial testing produced mostly formation water and very little gas, because the water was unexpectedly low in salinity; NSE calls the results disappointing. The top 20 ft will be retested, and an updip location 150 ft higher is seen as promising. Joann #1 will be cased. Cash is now about $1.5m.

drilling result

NSE won two Canning Basin application areas (100%) and is preferred bidder on a third, lifting its Goldwyer shale acreage to over 48,000 km2. DMP also approved replacing 600 line km of seismic with 6,000 line km of gravity gradiometry on EPs 450, 451, 456. NSE estimates this saves A$8-10m.

asset acquisition disposition

The Moeller #1 drill stem test could not be run because of unstable hole, so the well will be cased and flow tested over about two weeks. Logs show 155 ft of gross gas saturated sands; NSE calls it a potential gas/condensate discovery. No size or flow rate yet.

drilling result

NSE was awarded 100% of two Special Prospecting Authority areas, the Merlinleigh Project, covering over 8,500 km2 in the onshore Carnarvon Basin. It adds a shale and conventional gas option (up to 500 bcf in place, conventional) to the Canning Basin shale holdings, away from the Canning Basin.

asset acquisition disposition

An independent adviser, NSAI, found the Goldwyer shale across NSE's ~37,000 km2 Canning Basin permits has the geological indicators for shale gas. NSE has hired Euroz to seek and assess potential partners and farm-out, with drilling targeted for 2011. No resource figure given.

other

Moeller #1, the second Wilcox well, spudded 29 April, targeting 100 bcf and 2.4 million barrels of condensate at 12,500 ft. NSE has farmed in to raise its interest to 38.5% (from 36%), paying 39.33% of costs of ~US$1.9m dry or ~US$2.9m completed. Cash is about $3.0m.

drilling spud

Logs at Heintschel #1 (TD 11,800 ft) show a 225 ft hydrocarbon column with 135 ft of gas sand, versus 85 ft expected. Low-permeability sands need fraccing, planned late June, to prove commercial flow. NSE 32.5%; rig moves to Moeller #1 (100 bcf potential).

drilling result

Brasher #1, the Yegua gas discovery flow tested in March at 380 mcf/d, is now tied into the sales network and producing, the company's first revenue from the US program. NSE holds 32.5%; stabilised flow rates are to be reported in coming weeks.

production update

Heintschel #1, the first Wilcox well, spudded 4 April, about a week or so after the late-March plan. It targets 7.2 bcf of gas and over 100,000 barrels of condensate at 11,750 ft, costing about US$2.5m. NSE holds 32.5%.

drilling spud

NSE will accelerate shale gas work on the Goldwyer shale in its Canning Basin permits, after a review with an independent adviser found it prospective, though early stage. An adviser report is due within two months. No resource figure is given.

other

Brasher #1 flow-tested at 380 mcf/d of gas with no water from the top 2 ft of the 14 ft gas zone. Pipeline hook-up and sales are expected within 30 days. Management calls it a small first step; focus shifts to larger Wilcox wells, first spud planned late March.

well test result

Brasher #1 found a 14 ft gas column in the Yegua, and a formation test gave 100% gas. This is NSE's first US well; gas sales are expected in 30-45 days. Final size is unknown until extended flow testing. Focus now moves to the Wilcox wells.

drilling result

Brasher #1, the first well of the six-well Colorado County program, has spudded, about two months later than planned. It targets 1.4 bcf of Yegua gas at 5,000 ft, with NSE holding 32.5%. A three-well Wilcox rig contract is secured, with the first Wilcox well due in March.

drilling spud

NSE acquires a 36% working interest in two new Texas Wilcox projects (one in Colorado County outside the existing area, one in Wharton County) with Burleson and AKG. Each is said to have over 100 BCFE potential. Brasher #1 is deferred to early February.

asset acquisition disposition

Joint venture agrees a six-well Colorado County program starting December 2009 with a Yegua well, then Wilcox wells from January 2010. A large Edwards/Sligo prospect (Woppa) is put at 350 Bcf and 250 Bcf potential. Funded from $6m+ cash. Lawford 1 revisit now targeted for 2H 2010.

drilling scheduled

NSE completes the Acacia sale to Buru, receiving $3.2m cash and 18m Buru shares at 17c. Cash rises to $6.8m before costs, and NSE regains 100% of EP 443, 450, 451 and 456. The Buru farm-in is terminated.

asset acquisition disposition

NSE sells its Acacia Fairway permits to Buru for $3.2m cash plus 18m Buru shares at 17c (deemed $6.3m), giving about a 10% Buru stake. Four permits revert 100% to NSE and the Buru farm-in ends. Pro forma cash is about $7m.

asset acquisition disposition

Non-executive Chairman Gordon Hill, a founding director, will step down from the board effective 30 June 2009 to pursue other interests. He remains a significant shareholder.

director officer appointment

NSE agrees to farm into a 32.5% interest in a Colorado County, Texas 3D seismic project with Burleson (38%) and operator AKG, for A$2.5m from existing cash. Drilling is planned from Q3 2009. It is a diversification beyond the Canning Basin.

asset acquisition disposition

Trident Energy signs a binding heads of agreement to fund 25% of an initial program (200km 2D seismic by end-2010, one well by end-2011) to earn 17.5% of EP442(A). NSE keeps 82.5%, completing the EP442(A) farm-out talks noted earlier.

farm in farm out agreement

Lawford 1 is being temporarily suspended at about 1,320m, short of the Anderson and Laurel targets, because of site delays and the coming wet season. NSE and Buru agreed to return early in the 2009 drilling season to finish the well. No result yet.

drilling progress report

Lawford 1, the second EP417 well, spudded at 12:30pm on 4 October 2008 and was at 369m by 6 October, with no significant hydrocarbons. Planned depth is 1,650m. Targets are Anderson and Laurel sands; prospect could hold over 500 BCF gas or 440mmb oil if hydrocarbons are present. NSE 65%, Buru 35%.

drilling spud

Lanagan 1, the first well of the campaign, found no significant hydrocarbons in the Basal Laurel Sandstones reached at 1,400m (gas up to 8 units). After logging at about 1,530m it is expected to be plugged and abandoned. This is effectively a dry hole against the 220mmb prospect.

drilling result

Lanagan 1 spudded at 6pm on 29 August 2008, as flagged, and reached 430m by 1 September, on prognosis with only trace background gas. NSE holds 65% and Buru 35%. Target is the Basal Laurel Sandstones, expected at 1,650m.

drilling spud

Buru Energy will fund 35% of the first two EP417 wells, Lanagan 1 and Lawford 1, to earn a 35% interest, paying $75,000 for past costs. It has an option for a further 15%. NSE stays operator, reducing its drilling cost exposure.

farm in farm out agreement

The Canning Basin acquisition is complete and the company raised $7.5m under its prospectus. It will be re-quoted on ASX as NSE from 8 August 2008. This resolves the re-listing thread after the Hawk suspension.

other

The company confirms the Hawk/NSE implementation agreement of 12 May 2008 completed on 29 July 2008, with shares issued to NSE shareholders. This closes the merger step; the Canning Basin assets are now inside the listed company.

other

The raising closed oversubscribed, and Hawk intends to accept the full $1m of oversubscriptions on top of the $6.5m minimum, giving about $12m cash after settlement. Hawk shareholders approved the merger on 18 July; re-listing is targeted for late July.

capital raising announcement

NSE signs a contract with Australian Drilling Services for rig #6 to drill two EP417 wells from August 2008, with an option for two more. First well Lanagan A, to about 1,800m, is due to spud mid-August; mean oil in place is estimated at 220 million barrels.

contract award

Hawk lodges the prospectus for the NSE merger: 32.5m shares at $0.20 to raise $6.5m, with up to a further $1m from 5m oversubscription shares. Proposed directors include Gordon Hill as chair and Sam Willis, with Cygnet Capital as lead manager.

capital raising announcement

NSE won a 100% interest in application area 28/07-8 (next to EP417) and an option over 50% of area 30/07-8 (next to EP442), lifting its Canning Basin holdings above 90,000 km2. These are applications only; native title negotiations have not started.

asset acquisition disposition

Hawk agrees a conditional merger to acquire 100% of oil and gas explorer New Standard Energy (NSE), shifting from tungsten and coal to Canning Basin oil. It plans to raise at least $6.5m via 32.5m shares at 20c, needs shareholder approval and ASX re-compliance, and will rename itself New Standard Energy.

business combination

Stage two soil sampling defined the Wilks Creek tungsten anomaly at about 1.9 km long and 100 m wide. Hawk is seeking approvals for a 12-hole, 1,200 m diamond drilling program to test it.

drilling scheduled

Due diligence on Callie Soak is complete and the formal agreement signed, giving Hawk an 80% interest for $20,000 plus $40,000 of shares. This completes the October deal. Past drilling includes 3.0m at 1.77% WO3.

farm in farm out completion

Hawk bought 100% of coal permit EPC 1070 (Mount McDonald North) in Queensland's Bowen Basin for $75,000: $20,000 cash plus 137,500 shares at $0.40. This is its first coal asset, alongside its tungsten projects.

asset acquisition disposition

Hawk signed a Heads of Agreement to acquire 80% of the Callie Soak tungsten prospect near Cue, WA, for $20,000 cash plus $40,000 of shares, subject to due diligence. The 20% holder is free carried to a feasibility study.

asset acquisition disposition