17 July 2012other● Neutral
Notice that broker Hartleys has released a research note on Norwest, available on the company website. No new company information in the announcement itself.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
17 July 2012drilling progress report▲ Good
Frac equipment has begun leaving South Australia, slowed by rain, with operations expected by end of July. Pre-frac integrity (cement bond) and injection tests on Arrowsmith-2 were described as encouraging.
2 July 2012security holder rights change▼ Bad
104,324,068 listed 10c options and 3,000,000 unlisted employee options expired on 30 June 2012 unexercised. As flagged, no cash was raised; the options were out of the money with the share price near 6c.
2 July 2012drilling progress report● Neutral
The Arrowsmith-2 frac is now set for the second half of July as the equipment is serviced in Moomba. Razorback seismic interpretation shows a structurally robust prospect (43 MMbbl P50); UK regulators allowed the drill-or-drop decision to be deferred two years.
15 June 2012capital raising announcement● NeutralMajor
Share Purchase Plan offers eligible shareholders up to $15,000 each at 5c, to raise up to $5m (100m shares), closing 13 July. Funds go to exploration and working capital. Follows the November 2011 raising at 3c.
What it means for a shareholder
100m new shares at about A$0.050 to raise about A$5.0m. That's 10% dilution: every existing holder's slice gets 10% smaller. If you held A$1,000 of shares (20,000 at the issue price), your slice goes from 0.00229% to 0.00205% of the company. To keep it you'd need 2,288 more shares - about A$114 at the issue price.
Create a free account to see this worked out for your own holding.
15 June 2012capital raising announcement▼ Bad
The frac equipment is delayed again to mid-July by Cooper Basin weather. The CEO says this exposes Norwest to cost overruns and cost it the expected $10m from the 10c options expiring 30 June, hence the 5c, $5m share plan. Directors will take up their entitlements.
6 June 2012investor presentation● Neutral
Proactive Investors presentation repeating the portfolio: Arrowsmith-2 frac of about 8 weeks from late June, TP/15 renewed, SPA conversion applied for. Lists 874.2m shares, 5.6c price and $49m market cap. No new results.
31 May 2012regulatory community update▲ GoodMajor
TP/15 offshore permit renewed at 100% for five years to May 2017, with 15 km of seismic and one exploration well committed; this resolves the pending renewal. The Arrowsmith-2 frac equipment is now expected in late June, another slip from early June.
30 May 2012security holder rights change● Neutral
Notice to holders of listed options: they can be exercised at 10c by 29 June 2012, with quotation ceasing 22 June. Latest share price is 6c, below the exercise price, so exercise is not currently attractive.
1 May 2012security holder rights change● Neutral
1.5m unlisted options (1m at 20c, 500,000 at 25c) expired unexercised on 30 April 2012. Housekeeping; no cash raised.
19 Apr 2012joint venture update▼ Bad
Operator Empire advises the North Erregulla 3D survey timetable moves from 15 May 2012 to 15 May 2013 because the crew cannot mobilise before wheat seeding. Origin still earns 40% by paying 80%; Norwest pays 20%.
19 Apr 2012joint venture update▼ Bad
Norwest confirms the North Erregulla 100 km² 3D survey is delayed to early 2013 because the crew could not mobilise before wheat seeding. This pushes back the earlier Jan-April 2012 start. Origin still pays 80% and Norwest keeps 20%.
20 Mar 2012investor presentation● Neutral
Presentation repeating the portfolio: EP413 frac planned, TP/15 at 100%, SPA 0013 conversion being applied for, and Wessex prospects. No new results. Net acreage is about 2,543 km².
19 Mar 2012other● Neutral
Shareholder newsletter repeating the Minister's approval and the shale gas case (EIA 59 TCF for the northern Perth Basin). It is promotional and adds no new results.
19 Mar 2012regulatory community update▲ Good
Halliburton has confirmed it will bring its frac equipment to Arrowsmith-2, scheduled for early June 2012, weather and prior jobs permitting. This gives a firm timing after repeated delays; the earlier guide was after late April.
14 Mar 2012drilling result▲ Good
The 54km Razorback seismic survey on the Isle of Wight is finished in 13 recording days, within budget, with excellent data quality. Processing is due in about three weeks, then remapping of the 43 MMbbl (P50 oil in place) prospect.
2 Mar 2012regulatory community update▲ GoodMajor
The Environment Minister upheld the EPA's decision not to assess the Arrowsmith-2 frac, resolving the appeal pending since 2011. Halliburton's frac spread is in the Cooper Basin until late April 2012, then will be mobilised, so the frac can now proceed.
28 Feb 2012drilling progress report● Neutral
A 50km 2D seismic survey has started over the Razorback prospect on PEDL 239, Isle of Wight (Norwest 75%, Wessex Exploration 25%). Razorback is estimated at 43 MMbbl oil in place (P50). Survey takes about two weeks; this is the planned Q1 2012 programme.
31 Jan 2012investor presentation● Neutral
Notice of a CEO webcast on the SPA evaluation results and the Wessex licences. No new information in the announcement itself.
27 Jan 2012other▲ GoodMajor
Norwest's evaluation of its 860 km² SPA-0013 (100%) finds three prospective systems: deep shale gas, shallow shale gas and conventional leads. It will apply to convert the SPA to a five-year exploration permit, extending its footprint south in the Perth Basin. Follows the 2011 Fugro survey.
20 Jan 2012regulatory community update▼ Bad
Norwest is still waiting on the Environment Minister's ruling on the appeal against the Arrowsmith-2 frac decision. No frac date can be fixed until it comes, and the Q1 2012 timing quoted in November is no longer repeated. Stimulation is delayed again.
4 Jan 2012asset acquisition disposition▲ GoodMajor
Norwest's UK subsidiary has been awarded five offshore English Channel licences (65% and operator; Wessex Exploration 35%), next to its onshore Wessex permits and near Wytch Farm. Six leads identified with 15-32% chance of success. Award is subject to formal acceptance. Follows the earlier licence application.
16 Dec 2011capital raising announcement● Neutral
Rights issue completed with 97.13m shares allotted, bringing shares on issue to about 874.2m. Completes the November raising of about A$4.18m at 3c. Top 20 holders own 19.7%.
What it means for a shareholder
97.1m new shares at about A$0.043 to raise about A$4.2m. That's 10% dilution: every existing holder's slice gets 10% smaller. If you held A$1,000 of shares (23,237 at the issue price), your slice goes from 0.00266% to 0.00239% of the company. To keep it you'd need 2,582 more shares - about A$111 at the issue price.
Create a free account to see this worked out for your own holding.
14 Dec 2011capital raising announcement● Neutral
The entitlement issue closed with only 30.58m shares taken up by shareholders. The 66.54m-share shortfall (about 69% of the offer) falls to underwriter Patersons, so the A$2.9m is still raised.
6 Dec 2011farm in farm out completion● Neutral
ERM Power, an EP426 partner, confirms Origin's farm-in settled on 5 Dec, leaving ERM with 13.89% after Origin earns 40%. Repeats the Empire and Norwest announcements.
5 Dec 2011farm in farm out completion▲ GoodMajor
Origin's farm-in to EP368 and EP426 has been formally settled. Origin earns 40% of each by paying 80% of a 100 km² North Erregulla 3D survey; Norwest keeps 20% and pays 20% of costs. Completes the conditional farm-in noted earlier. Empire stays operator.
5 Dec 2011farm in farm out completion▲ Good
Norwest's own notice of the Origin farm-in settlement: it keeps 20% and pays 20% of the 100 km² 3D. Empire's revised mapping gives North Erregulla 22MMbbls (Wagina), 3MMbbls (Arranoo) and 100BCF gas, lower than earlier oil figures. Hoyer analysis suggests shale gas potential.
30 Nov 2011investor presentation● Neutral
AGM presentation largely repeating known facts. New detail: Origin 3D seismic at North Erregulla to begin January 2012, PEDL 089 relinquished, and Halliburton frac start now expected after the Minister's decision, with the Minister expected to uphold the EPA. Text truncated.
30 Nov 2011regulatory community update▼ Bad
Norwest still awaits the Environment Minister's ruling on the appeal against the Arrowsmith-2 frac. The Halliburton frac spread is in the Cooper Basin and reportedly free in mid-January 2012, so stimulation slips into Q1 2012 from the earlier late-2011 target.
28 Nov 2011security holder rights change● Neutral
6,925,000 unlisted options at 15c lapsed unexercised on 27 Nov 2011. Housekeeping; no cash raised.