28 July 2010capital raising announcement● Neutral
Covering letter inviting eligible shareholders to buy A$5,000-15,000 of shares at 2.6c under the Share Purchase Plan, closing 20 August 2010. Repeats the announced terms; no new information.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
28 July 2010quarterly activities report● Neutral
June quarter report: farm-out talks for TP/15 and EP413 at an advanced stage with an unnamed offshore corporation. Red Hill South estimate raised from 7 to 9 MMbbl recoverable. Only one WA rig is available, so Norwest has applied to extend the TP/15 permit to August 2011.
28 July 2010capital raising announcement● NeutralMajor
Norwest offers a Share Purchase Plan of up to 176m shares at 2.6c (up to A$4.58m), a 9.1% discount, for UK and Australian exploration and bridging funding of TP/15 and EP413. This follows the earlier 2.3c placement. Farm-out talks remain advanced but unsigned.
What it means for a shareholder
176m new shares at A$0.026 to raise about A$4.6m. That's 23% dilution: every existing holder's slice gets 23% smaller. If you held A$1,000 of shares (38,462 at the issue price), your slice goes from 0.00655% to 0.00504% of the company. To keep it you'd need 11,526 more shares - about A$300 at the issue price.
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28 July 2010capital raising announcement● Neutral
Standard terms and conditions of the Share Purchase Plan: 2.6c per share, A$5,000-15,000 per holder, maximum 176,183,575 shares, non-renounceable. Administrative document with no new information.
15 June 2010other● Neutral
First shareholder newsletter. Says TP/15 (Redhill) farm-out talks are progressing satisfactorily, and that EP413 (55.606%, 69,800 net acres) shale gas value must be reflected in any farm-out. Management's view; nothing is confirmed. Q4 drilling approvals are being pursued.
24 May 2010investor presentation● Neutral
Notice of a Boardroom Radio audio broadcast on 24 May 2010 in which CEO Peter Munachen gives a company update and background. No new information in the notice itself.
10 May 2010resource reserve update● Neutral
Re-release of the 10 May Empire announcement: remapping of North Erregulla (EP368/426, Norwest 20%) gives a conceptual 66m barrels of recoverable oil (9m Arranoo, 57m Dongara) plus ~300 Bcf gas potential. Conceptual only; Empire plans 3D seismic before drilling.
10 May 2010resource reserve update▲ Good
Operator Empire's remapping puts a conceptual 66m barrels of recoverable oil in the North Erregulla structure (EP368/426, Norwest 20%), if filled to the old well's oil/water contact. Empire plans a 3D seismic survey before drilling. Estimates are unconfirmed.
19 Apr 2010investor presentation● Neutral
Conference presentation repeats the Wessex leads, shale gas and TP/15 themes. It adds a plan to drill a slim shale core well on EP413 in Q4 2010. Quoted share price is 4.4c with 587m shares on issue, market cap about A$27m.
19 Apr 2010investor presentation● Neutral
Conference flyer repeating known themes: TP/15 drilling in Q4 2010, Wessex leads, EP413 shale gas and Jingemia and Puffin cash flow. Share price 4.2c, 587m shares. No new announcements.
16 Apr 2010quarterly activities report● Neutral
March quarter report: shale gas potential, EP413 at 55.606% and Jingemia at 6.278%. TP/15 farm-out talks are taking longer than the expected end-March because the shale gas potential changed discussions; Norwest expects a more favourable outcome (its view). TP/15 drilling still set for Q4 2010.
9 Apr 2010resource reserve update▲ GoodMajor
Evaluation of Norwest's three UK Wessex Basin permits identifies seven leads with unrisked P50 recoverable oil of 3.4-53.88m barrels. A study puts the commercial threshold for UK onshore finds at 400,000 barrels. These are leads, not drill-ready prospects.
19 Mar 2010other▲ GoodMajor
Responding to AWE's shale gas push in the Perth Basin, Norwest says its acreage has shale gas potential, with 376,211 net acres and a 55.606% stake in EP413. Recoverability and commercial viability remain unproven, as management acknowledges.
16 Mar 2010production update● Neutral
AED is finishing 3D seismic over the Puffin field and, with partner Sinopec, is working on a revised development plan to restart production, halted since last May. Norwest keeps its 1.25% royalty. No restart date is given in this announcement.
12 Mar 2010half year report● Neutral
Half-year to 31 December 2009 shows a loss of A$1.16m against A$10.3m a year earlier, when exploration write-offs were large. Revenue was A$106,767. The accounts also note the Origin and Victoria Petroleum purchases and the placement as subsequent events.
11 Mar 2010security holder rights change● Neutral
500,000 employee unlisted options issued in 2005 (exercisable at 20c and 25c) have expired. Administrative notice.
15 Feb 2010capital raising announcement● NeutralMajor
Norwest plans a placement of up to 56.575m shares at 2.3c to raise up to A$1.3m, managed by Patersons. Funds will pay for the Victoria Petroleum assets, Perth Basin and Wessex Basin exploration and working capital.
What it means for a shareholder
56.6m new shares at A$0.023 to raise about A$1.3m. That's 9.6% dilution: every existing holder's slice gets 9.6% smaller. If you held A$1,000 of shares (43,478 at the issue price), your slice goes from 0.00819% to 0.0074% of the company. To keep it you'd need 4,635 more shares - about A$107 at the issue price.
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12 Feb 2010asset acquisition disposition● Neutral
Victoria Petroleum's side of the sale to Norwest for A$500,000: 5% of Jingemia (L14) and 5.013% of EP413. It calls the assets non-core. Confirms the deal terms and the 31 December 2010 approval deadline.
11 Feb 2010asset acquisition disposition▲ GoodMajor
Norwest agrees to buy Victoria Petroleum's Northern Perth Basin interests for A$500,000, lifting Jingemia from 1.278% to 6.278% and EP413 from 50.593% to 55.606%. Management says Jingemia could give A$750,000-1m a year (company estimate). Approval is required by 31 December 2010.
29 Jan 2010quarterly activities report● Neutral
December quarter report restates the EP413 purchase from Origin, TP/15 targets for Q4 2010 drilling and Aztech Well Construction's appointment to help source a rig. It also reports that UK PEDL 238 gravity data confirms several leads. No new results.
21 Jan 2010asset acquisition disposition▲ GoodMajor
Norwest agrees to buy Origin's 49.189% of EP413 for A$87,500, lifting its stake from 1.278% to 50.467%. This is next to the Jingemia field. It is subject to ministerial approval by 30 June 2010 and a commitment to drill a well by 1 February 2011.
18 Jan 2010drilling scheduled▲ Good
Detailed interpretation of the 2009 gravity survey confirms Xanadu (98m barrels in place, 27m recoverable) and Redhill South (27m in place, 7m recoverable) as TP/15 (Norwest 100%) targets. At least one well is planned for Q4 2010; farm-in talks described as advanced.
25 Nov 2009security holder rights change● Neutral
1,750,000 unlisted options exercisable at 15c, issued in 2004, expired unexercised on 25 November 2009. Administrative notice.
23 Nov 2009investor presentation● Neutral
Conference presentation repeating known themes: TP/15 drilling in Q4 2010, Puffin royalty valued at A$15m NPV, and UK Wessex Basin acreage. Share price quoted at 3.5c, 530.7m shares on issue and market cap A$18.6m. No new announcements.
9 Nov 2009production update▲ GoodMajor
Citing AED's report, Norwest says Puffin has 20.93m barrels of P50 reserves and production is likely to resume in 18-24 months. Norwest calculates its 1.25% royalty is worth about A$15m NPV at 10% (assumes US$80/bbl oil). Earlier restart is not expected.
30 Oct 2009quarterly activities report● Neutral
September quarter report: Jingemia-12 came on line in late October, expected to add about two years to field life. Jingemia produced 37,424 barrels (478 net to Norwest, A$38,189 revenue). The rights issue raised A$2.6m, and TP/15 drilling is planned for Q4 2010 with farm-out talks ongoing.
28 Oct 2009annual report● Neutral
2009 annual report: Norwest sold its offshore assets to repay Investec debt and now focuses on low-cost onshore and nearshore exploration. Cash at 30 June was A$1,152,408, down from A$1,607,148. It raised A$2,801,689 in equity during the year and a further A$2.633m after year end.
23 Oct 2009investor presentation▲ GoodMajor
Early review of the TP/15 gravity survey confirms the Xanadu and Redhill South prospects as drill targets for 2010. Xanadu is put at 98m barrels of oil in place (27m recoverable); Redhill South at 27m in place (7m recoverable). Drilling is targeted for Q4 2010, subject to securing a rig, with farm-in talks continuing.
18 Sept 2009director officer appointment● NeutralMajor
Mike Fry, a director since June 2009, is appointed Chairman with immediate effect. This fills the chair left open by Bill Bloking's retirement on 30 June 2009. He also chairs Red Fork Energy and sits on two other ASX boards.
16 Sept 2009regulatory community update● Neutral
The ground gravity survey over PEDL 238 in Dorset (Norwest 50% operator, Osceola 50%) is complete, giving full permit coverage. An interpretation report is expected by end of 2009, with 2D seismic planned for the second half of 2010.