Past year: ▲ 60%(3.50c – 6.80c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
11 Dec 2012drilling progress report● Neutral
Partner AWE repeats the Kockatea shut-in: about 78% of frac fluid recovered, gas up to 70,000 scf/d, latest 45,000 scf/d. Testing resumes mid-January on the Carynginia, then IRCM and High Cliff, taking 3-4 months. Mentions a possible pilot horizontal well.
29 Nov 2012investor presentation● Neutral
AGM presentation says the well was shut in after the Kockatea stage because standby costs were prohibitive. Kockatea now makes up to 70,000 scf/d gas with about 15% oil cut. Stated ultimate objective is gas to market in Q3 2014.
29 Nov 2012drilling progress report▲ Good
Swabbing at Arrowsmith-2 since 19 November lifted Kockatea recovery to 120-150 bpd of fluid, oil cut near 15%, and gas up to 70,000 scf/d. Over 66% of injected fluid is back; stable rates are expected near 80%. Program still seen at 3-4 months.
22 Nov 2012joint venture update▲ Good
Bharat Petroleum's chairman visited Arrowsmith and intends to progress further investment, including pipeline and gas marketing, possibly to India. Kockatea flow back is improving with 24-hour operations approved, but rates are not yet established.
21 Nov 2012material agreement termination▼ BadMajor
Partner Empire reports Origin has given notice purporting to terminate its farm-ins on EP368 and EP426, citing the regulator not approving timing variations. Empire will seek legal advice. This ends the expected Origin 3D funding; Norwest holds 20% of each permit.
14 Nov 2012investor presentation● Neutral
Argonaut broker presentation repeats known Arrowsmith-2 results and plans, noting Kockatea flow back began 29 October. Share price 7.7c, market cap $75.0m, cash $6m at 30 Sept, no debt. No new results.
2 Nov 2012drilling progress report▲ Good
Flow back at Arrowsmith-2 restarted on the Kockatea Shale, producing oil, gas and frac water after the earlier shut-in. Testing of all zones is expected to take 3-4 months; a 3D seismic survey for early 2013 and a pipeline scoping study are being planned.
26 Oct 2012annual report● Neutral
2012 annual report for the year to 30 June 2012 recaps the Arrowsmith-2 fracs (gas flares on all five intervals), the SPA conversion approval subject to Native Title agreements, and the TP/15 renewal. Truncated text gives no financial figures.
25 Oct 2012investor presentation● Neutral
Macquarie broker presentation repeats the Arrowsmith-2 story: gas from all five zones, oil from the Kockatea, 'multi TCF' potential. Shows 974.3m shares, A$6m cash at 30 Sept 2012, no debt, share price 6.5c. No new results.
6 Sept 2012drilling result▲ GoodMajor
Arrowsmith-2 is declared a technical success, with all five zones producing hydrocarbons to surface. Kockatea flow back has resumed, to be followed by an extended production test and then a contingent resource estimate. This is the final weekly update of this phase. Commercial rates remain unproven.
3 Sept 2012drilling result▲ GoodMajor
The final Stage Five frac on the Kockatea Shale produced both oil and gas to surface, and the well was shut in after 10 hours because site storage was insufficient. Norwest says all five zones have now flowed hydrocarbons. This is the first oil sign in the program; commerciality is not yet known.
3 Sept 2012drilling result▲ Good
Partner AWE confirms the Kockatea Shale frac at Arrowsmith-2 recovered both oil and gas, with testing paused while separation equipment is brought in. Repeats Norwest's 3 September result.
31 Aug 2012drilling progress report▲ Good
AWE update on its Perth Basin program: Senecio-2 gas flows have risen to about 1 million cubic feet a day. Arrowsmith-2 Carynginia is still flowing back and the Kockatea frac is being prepared. Mostly about partner wells.
30 Aug 2012drilling progress report▲ Good
Carynginia clean-up continues with steady gas and fluid returning, while Stage Five on the Kockatea Shale (2,639-2,681m) is prepared. Norwest says the primary objectives are met on the first four stages. Operations are expected to continue 1-2 more weeks.
27 Aug 2012flow test result▲ Good
Stages Three and Four (Lower and Middle Carynginia) were fracced and gas reached surface within 3 hours of flow back. The release also says the Irwin River Coal Measures never reached a stable rate and may be re-entered later. The High Cliff's 777 Mscf/d is described as stabilised, but flow back was limited to ten days.
23 Aug 2012flow test result▲ Good
AWE reports its Senecio-2 well in the same campaign flowing about 0.5 million cubic feet a day after stimulation. For Arrowsmith-2, gas has flowed from both zones so far and Carynginia stimulation is next. Mostly about AWE's other wells.
23 Aug 2012drilling progress report● Neutral
Stage Two on the Irwin River Coal Measures got gas to surface but no gas rate could be established after seven days; the zone needs much longer flow back. Stages Three and Four (Carynginia) are being fracced. A more cautious note than the prior week.
16 Aug 2012drilling progress report▲ Good
Stage Two frac on the Irwin River Coal Measures is complete, with gas to surface earlier than expected and clean-up under way. No established rate yet. Stages Three and Four (Carynginia) are being prepared. Operations are expected to take another 4-5 weeks.
9 Aug 2012admin correction● Neutral
Norwest reported early Stage One flow rates at Arrowsmith-2: the High Cliff Sandstone peaked at 777 Mscf/d and averaged 446 Mscf/d over 40 minutes during clean-up. It was preparing Stage Two (Irwin River Coal Measures), with operations expected to continue another 5-6 weeks.
9 Aug 2012flow test result▲ GoodMajor
First measured gas rate from Arrowsmith-2's High Cliff Sandstone: peak 777 scf/d, average 446 scf/d over 40 minutes, still during clean-up. Norwest calls it 'extremely pleasing'. This answers the open question on Stage One flow, though the unit was later corrected.
9 Aug 2012flow test result▲ Good
Partner AWE re-releases Norwest's report as operator: High Cliff Sandstone peaked at 777 Mscf/d, averaging 446 Mscf/d over 40 minutes during clean-up. Stage Two is next. No new information.
2 Aug 2012drilling progress report● Neutral
Arrowsmith-2 is still unloading water and gas after the Stage One frac, with no established gas rate yet. Site preparation for Stage Two (Irwin River Coal Measures, 2,949m) is under way. Operations are expected to run another 6-7 weeks.
31 July 2012flow test result● Neutral
Partner AWE says initial flow back from the High Cliff Sandstone included small amounts of gas, but it is too early to judge commercial potential. Gas rate testing is planned after about a week of clean-up. Repeats Norwest's report.
31 July 2012admin correction● Neutral
Amended version of the 31 July Arrowsmith-2 update, correcting wording and the evaluation timeframe to six to eight weeks. No new results.
31 July 2012admin correction● Neutral
Re-release of the 31 July Arrowsmith-2 update including the flare photograph caption. Same content: gas flowing during clean-up, no measured rate yet.
31 July 2012investor presentation● Neutral
Shale gas conference presentation repeating the Arrowsmith-2 evaluation work, 59 TCF EIA estimate and net acreage of 2,543 km². Flow rates per formation remain the awaited test. No new results.
31 July 2012flow test result▲ Good
Arrowsmith-2 is producing gas to surface during clean-up after the High Cliff frac, with a visible and strengthening flare and falling water cut. No gas flow rate has been measured yet, so commerciality is unknown.
30 July 2012drilling progress report▲ Good
Stage One frac on the High Cliff Sandstone was completed without incident on 29 July, and flow back has begun. The frac crew moves to the AWE well before returning for Stage Two on the Irwin River Coal Measures. This is the first frac of the Arrowsmith-2 campaign.
24 July 2012drilling scheduled● Neutral
Frac equipment delivery is expected by 27 July, with the first stage on the High Cliff Sandstone (about 3,300m) taking one to two days, then flow back. Weekly Thursday updates will follow, the first on 2 August.
19 July 2012capital raising announcement▲ GoodMajor
The share plan raised 62.6m shares from shareholders at 5c; the 37.4m-share shortfall was placed with Hartleys and Patersons clients. That totals the full 100m shares, about $5m at 5c (calculated from the offer terms), lifting shares on issue to roughly 974m.
What it means for a shareholder
62.6m new shares at A$0.050 to raise about A$5.0m. That's 6.7% dilution: every existing holder's slice gets 6.7% smaller. If you held A$1,000 of shares (20,000 at the issue price), your slice goes from 0.00229% to 0.00213% of the company. To keep it you'd need 1,432 more shares - about A$72 at the issue price.
Create a free account to see this worked out for your own holding.
