Octanex NL

ASX removed Octanex from the official list at close of trading on 6 June 2023, at the company's request, after the Albers scheme became effective. Octanex is no longer listed, ending its ASX history.

registration revoked

The Supreme Court of Victoria approved the scheme and the orders were lodged with ASIC, making it legally effective. Albers and associates acquire 100% of Octanex. Non-associated holders are due $0.002 per share on 14 June 2023; delisting follows.

business combination

Shareholders approved the Albers scheme, with 96.13% of votes cast in favour; Albers and associates did not vote. Court approval is set for 5 June, and the board will seek delisting from the effective date. Payment of $0.002 per share is expected 14 June 2023.

business combination

Supreme Court of Victoria ordered a scheme meeting for 23 May 2023. The independent expert found the $0.002-per-share scheme fair and reasonable. Court approval is targeted for 5 June, with payment on about 14 June 2023.

business combination

ASX suspended Octanex shares from 16 March 2023 pending compliance with Listing Rule 19.11A(b), relating to a disclaimer conclusion by the auditor in its review of the half-year report. Shareholders cannot trade until resolved.

listing compliance notice

Albers proposes a scheme of arrangement paying non-associated shareholders $0.002 cash per share (about $207,000 total). Independent directors recommend it subject to an independent expert; Sabah (15.7%) intends to vote in favour. Meeting expected late April 2023; company has a shareholder funds deficiency of about $682,000.

business combination

Chairman Geoff Albers, whose group holds about 60.02%, intends to propose privatising Octanex by buying out other shareholders; price not yet set. Octanex has no exploration assets and owes $760,069 to the Albers Group and employees, with more borrowing expected.

business combination

After reviewing the conceptual targets, Octanex decided to relinquish all its remaining East Yilgarn tenements. This reverses the July 2022 plan to keep five licences and ends the company's gold exploration effort.

asset acquisition disposition

A strategic review downgraded earlier 'major structures' and anomalous gold results and found no support for rare earth or lithium prospectivity. Octanex will relinquish about 70% of its ~3,900 km2 tenements, keeping five totalling ~1,245 km2. This contradicts the earlier optimistic Sefton story, and the planned 2022 drilling is not mentioned.

asset acquisition disposition

Quarter to 31 March 2022: Ascalon permit WA-407-P expired on 18 February 2022 because Octanex did not seek renewal, citing high technical and economic risks and its minerals focus. This closes the Ascalon gas thread; the company now works on integrated data review at Sefton.

quarterly activities report

Second-round lag sampling at Sefton found peak gold of 5 ppb, 31 samples above 1 ppb and ten above 1.5 ppb, extending anomalism along about 10 km of strike. Octanex is planning shallow aircore/RAB drilling in 2022. These are low-level surface anomalies, not a discovery.

drilling result

Octanex has earned its 65% of Sefton by funding $500,000 and elected to earn a further 15% (80% total) by spending $225,000 and issuing 1,153,846 shares to Reindler. This advances the Reindler agreement; further lag results are due August 2021.

farm in farm out completion

Octanex raised $750,000 from a placement of 15M shares at 5 cents, with one free option for every two shares (7.5c, expiring April 2023). Funds go to Sefton exploration. Shares on issue rise to 257.8M, following the cash of $311k at March.

capital raising announcement

First-pass lag sampling on the newly granted Sefton licences found peak gold of 3.2 ppb and six anomalies above 1.5 ppb, which Octanex calls encouraging. More sampling is planned. These are low-level geochemical anomalies, not a drilled discovery.

drilling result

Quarter to 31 December 2020: three Sefton exploration licences were granted in January 2021, turning applications into tenure. Ascalon year 6 received a twelve-month suspension and extension, now ending February 2022. 29,889,107 trust-held shares were cancelled for no payment.

quarterly activities report

Quarter to 31 March 2020: WA-407-P (100%) work program now amended to studies rather than a well. Octanex decided not to renew WA-420-P, which expired. Sefton gold applications are held up by COVID-19 Native Title delays; interest is now stated as up to 80%.

quarterly activities report

Quarter to 30 September 2019: Octanex expands its strategy to include greenfields gold exploration, applying for six exploration licences in WA's Sefton Lineament (Eastern Goldfields). Ascalon appraisal studies continue and a partner is still sought. Operating cash use was $611K.

quarterly activities report

Cornea lease WA-54-R (Octanex 18.75%) has expired after the JV withdrew its renewal application, judging NOPTA unlikely to support renewal. This ends the Cornea oil project, which the JV had said was not commercial at current prices.

regulatory community update

Octanex settled the SIP convertible note: it is released from the US$8M facility in return for handing SIP its 50% Ophir holding company, the related intercompany debt, and US$2,089,449 in cash. This ends Octanex's Ophir involvement and removes the redemption risk.

debt financing

Ophir close-out talks with PETRONAS have concluded: facilities handed over, cost reimbursement started and due to finish in Q2 2019, and FPSO contracts novated. Octanex is seeking to restructure the SIP note, otherwise redeemable at maturity 30 June 2019.

material agreement

Quarter to 30 June 2018: Ophir production has ended and the development was not economic; RSC termination notice given 6 June. Octanex does not expect surplus funds after fully redeeming the SIP note. Cornea needs oil consistently above $80 to justify development.

quarterly activities report

The Winchester JV (Santos 75%, Octanex 25%) will not apply for a retention lease, so WA-323-P expires 5 July 2018. This ends the Winchester gas discovery effort after Santos could not find a development concept it considered likely to be commercial within fifteen years.

regulatory community update

OPSB has terminated the Ophir risk service contract after 'economic cut-off', ending the project. PETRONAS is to take over the field and reimburse unreimbursed costs; Octanex expects this to take about 12 months. SIP note remains repayable from those proceeds.

material agreement termination

Ophir wells are to be suspended with PETRONAS approval, and OPSB has asked PETRONAS to terminate the risk service contract. Octanex must still redeem the SIP convertible note from OPSB payments unless SIP converts. The field life was unexpectedly short.

production update

Nitrogen lifting failed to restart Ophir production. OPSB is discussing next steps for the field with PETRONAS. This is a setback to the field that first produced in October 2017.

production update

Octanex will withdraw from permits WA-362-P and WA-363-P after Eni, which had carried it, announced its own withdrawal. Octanex cited the cost of the year-4 seismic obligation and uncertainty of finding a new partner. Closes the Eni-carried interests (33.33%).

asset acquisition disposition

Ophir is in a non-routine shutdown after an FPSO power trip. Restart has not yet succeeded and troubleshooting is under way. This interrupts the production that began in October 2017, with no restart date given.

production update

Ophir achieved contractual 'First Oil', with production starting 20 October 2017, capped at 3,000 bopd while de-bottlenecking continues. First crude lifting expected in December 2017. This delivers the milestone on the Ophir 2H 2017 first-oil timetable.

production update

Ophir facilities are commissioned and hydrocarbons are being received, processed and stored on the FPSO, with performance tests under way. Next milestone is contractual 'First Oil', defined as 20 days of production out of 25.

production update

Octanex withdrew its March 2016 Ascalon retention lease applications after NOPTA advised the technical uncertainties should be addressed under exploration permits. It has started independent studies on resources and well deliverability. Both permits are in their term ending May 2018.

regulatory community update

The Ophir three-well drilling campaign is finished, which the company says was ahead of time and under budget, and the Naga-2 rig is being released. No further drilling updates are expected. Wells are shut in awaiting FPSO tie-in.

drilling result

Ophir A1, the first of three horizontal production wells, was spud on 2 June 2017 using the NAGA 2 rig. Target reservoirs are already proven oil-bearing, so this is development drilling, not exploration, toward 2H 2017 first oil.

drilling spud

The regulators have declared their earlier refusal of Ascalon retention leases null and void, because Octanex was not told of the recommendation to reject or given a chance to respond. Applications will be re-assessed; reverses the 10 March setback, though outcome is open.

regulatory community update

Regulators advised they are not prepared to grant retention leases for Ascalon (3.2 TCF P50 contingent gas), saying it is unlikely to become commercially viable within 15 years. This contradicts the application pending since early 2016. Octanex is seeking clarification.

regulatory community update

FPSO secured for Ophir: MTC Engineering is converting the tanker Puteri Bangsa into the MTC Ledang FPSO, with 350,000 barrels storage, on a three-year term plus one-year option. Completes the rig and FPSO contracts flagged earlier, a step toward 2H 2017 first oil.

contract award

Updated Ophir presentation: first oil still 2H 2017, with most-likely production now 6.7M barrels from three wells over about three years, versus 5.2M in the approved plan. Wellhead platform complete; capex USD90M. Funding stated as fully funded.

investor presentation

Timetable for cancelling the unpaid 10c per share on the 67,078,910 partly paid shares and consolidating them into fully paid shares at 3 for 5, effective 12 December 2016. Change to limited liability status is estimated for 25 January 2017.

security holder rights change

Ophir joint venture awarded the jack-up drilling rig contract to UMW Offshore Drilling; the NAGA 2 rig mobilises in Q2 2017 to drill three production wells. This delivers one of the rig contracts expected in earlier reports; the COO says it locks in significant cost savings.

contract award

June quarter report: Ophir first oil deferred to second half of 2017 (from late 2016), reportedly to avoid monsoon risk and chase higher oil prices. Cash $3.1M. Cornea economics studied at current oil prices. Text truncated.

quarterly activities report

Ophir's joint venture awarded the wellhead platform contract to Muhibbah Engineering, with installation in Q3 2016 and oil production in late 2016. Octanex's share is stated as fully funded. A concrete step toward first oil at Ophir.

contract award

Octanex accepts full satisfaction of the Peak loan ($1,284,744 plus interest) in exchange for sharing proceeds from Peak's Cadlao interests for two years, capped at $1,603,683. Cash repayment is replaced by a contingent payment (inference: repayment is now uncertain).

material agreement

Directors resolved that no call will be made on the 74,278,910 partly paid shares (10 cents unpaid each) before first oil at Ophir or 31 December 2018, whichever is earlier. Holders face no earlier payment, but the company also gets no early call money.

security holder rights change

PETRONAS approved the revised Ophir field development plan, with capital cost cut about 30% to US$90M (from US$135M earlier). Development starts immediately. Octanex's 50% share is stated as fully funded. This resolves the pending approval thread.

material agreement

A location was declared over the Ascalon gas discovery in WA-407-P, Bonaparte Basin, where Octanex holds 100%. This is the first step towards a retention lease, which Octanex will now seek. Commerciality depends on engineering and gas market conditions.

regulatory community update

Octanex received $700,000 from Peak after Peak's subsidiary sold its South Block A interests in Indonesia. The Peak loan balance falls to about $1,274,475, still secured over Peak's assets. This resolves the South Block A sale vote and gives Octanex working capital.

asset acquisition disposition

Octanex and Peak sign amended loan terms: debt fixed at $1,953,815 at 31 December 2014, interest at the RBA cash rate, and 60-day rolling extensions up to 30 June 2016. The debt is secured by charges over Peak's assets.

debt financing

All five resolutions passed at the 4 February extraordinary meeting, including the Sabah share and convertible note issue, the share charge, and the election of Guglielmo, How Kow and Kler. This clears the Sabah funding deal.

agm notice

Oil Basins reports that Octanex terminated its 2013 deed with Oil Basins over the Derby Block (EP487), so Octanex now has no interest in or claim on the permit. This ends the planned $1.75m purchase of 25%.

asset acquisition disposition

After a strategic review prompted by falling oil prices, Octanex says Ophir cost savings should let the project return money even at low prices. It confirms it will not extend the Peak merger and has cut corporate overheads. Ophir equity funding depends on February approval of the Sabah deal.

other

Tino Guglielmo, a petroleum engineer who previously led Stuart Petroleum and Ambassador Oil & Gas, joins the board, as do Sabah's nominees Kevin How Kow and Suhnylla Kler. Graeme Menzies, a director since 2003, resigns. The board is now seven.

director officer appointment

The Peak merger is terminated: Peak withdrew its court application after Octanex refused to extend the 31 December 2014 end date or lend more. Octanex has advanced net $1,887,159 to Peak, which it will not call immediately and will seek to recover through orderly repayment.

business combination

Octanex signed definitive agreements with SIP on the October terms: a US$12m bridge loan to 31 March 2015 at 8%, US$5m for 40,332,663 shares and US$12m convertible notes, secured over Octanex Pte Ltd shares. Share and note issue needs shareholder approval. Management says Ophir is now fully funded.

debt financing

Octanex signed non-binding term sheets with Sabah International Petroleum (SIP): 40,332,663 shares for US$5m (about A$0.14), US$12m convertible notes, and a US$12m bridge loan to 31 March 2015. SIP gets two board seats and 21% of listed shares. Needs shareholder approval.

capital raising announcement

PEP 53473 (Takapou, formerly Kokako) has been returned to the Crown after the partners chose not to commit to a well due by March 2016. Octanex held 50% with NZOG as operator. Ends that permit and its farmout thread.

asset acquisition disposition

Octanex's 50%-owned Ophir joint venture accepted up to US$118.76m of bank loans for the Ophir field offshore Malaysia, covering 75% of the US$135m development; first oil is expected December 2015. Octanex gave a proportionate corporate guarantee. Adds a contingent liability.

debt financing

Octanex signed an Implementation Agreement for Peak to merge into it by scheme: 1 Octanex share per 24 Peak shares, plus a further 1 per 24 bonus if the Cadlao dispute is resolved. A loan funds Peak to end-2014. Turns the proposed merger into a binding step.

business combination

The Cornea joint venture was granted retention lease WA-54-R over about 497 km² for an initial 5 years from 6 May 2014. Octanex holds 18.75%. The plan is studies, then a production test well in Year 4. This resolves the pending retention lease application.

regulatory community update

Petroleum Exploration Permit 487 over the Derby Block has been granted to Oil Basins and Back Reef. Octanex says the native title and grant-terms conditions of its 25% purchase are now satisfied, and the agreement was extended 18 months. Registration and a joint venture agreement are still needed.

regulatory community update

Matuku-1 reached 4,846m and is plugged and abandoned: sandstones were found in both targets but commercial hydrocarbons were not confirmed. This is a dry-hole outcome for the well OMV put at about 65 mmbbl mean if successful. Octanex's 22.5% was free carried, so it bore no cost.

drilling result

Octanex NZ is awarded 100% of PEP 55790 (about 518 km²) in offshore Taranaki, its fifth New Zealand permit, lifting acreage to about 7,640 km². Term starts 1 April 2014; the work programme is 2D seismic reprocessing, with the right to surrender at each decision point.

regulatory community update

Octanex received the final US$6.25m from NZOG for the 12.5% PEP 51906 interest, completing the US$12.5m sale. The money is not needed for Matuku-1, as Octanex is fully carried. Options remain for NZOG to earn a further 5% via Matuku-2.

asset acquisition disposition

Matuku-1 spudded at 13:50 on 30 November 2013 after a weather delay, targeting about 4750m. Octanex's 22.5% is free carried by OMV. This is the well OMV estimated at about 65 mmbbl mean recoverable if successful.

drilling spud

Octanex agrees to fully underwrite Peak Oil & Gas's $1.943m rights issue (2-for-5 at 1 cent) and to work towards merging with Peak by scheme, paying at least 1 cent of Octanex shares per Peak share. Albers is a related party of both and will not vote. Fits Octanex's South-East Asia push.

business combination

Octanex and NZOG begin a global farmout campaign for PEP 52593 and PEP 53473, ahead of the March 2014 drilling commitments. Pre-3D estimates: Karoro up to 140 mmbbl and Kokako up to 81 mmbbl (high cases). No partner signed yet.

farm in farm out agreement

First contingent resource booking for the Cornea Field in WA-342-P: best-estimate 28.8 mmbbl oil (range 7.9–101.9) and 67.1 Bcf gas. Octanex's 18.75% share is 5.40 mmbbl oil and 12.58 Bcf gas. Supports the retention lease application following the June location declaration.

resource reserve update

Final analysis lifts the Winchester condensate-bearing net gas pay from 40m to 58m below 3614m, to TD of 4019m. The well is being abandoned, with the rig released around 21 August. This is the last progress report.

resource reserve update

Shell's Palta-1 in WA-384-P reached total depth with no commercial hydrocarbons and is being plugged and abandoned. This resolves the open Palta result; Octanex keeps its discovery payments (US$5m already received), 1% royalty and re-conveyance rights.

drilling result

Octanex confirms the Winchester gas discovery: about 40m net gas pay in a 107m gross interval, ending the long wait for the result. It will fund 25% of deepening, capped at A$5m; the text says commercial prospects look good.

drilling result

Santos announces a gas discovery at Winchester-1: 40m of net gas pay in Jurassic Angel and Triassic Mungaroo formations between 3,614 and 3,721m. The well will be deepened to test further Mungaroo objectives.

drilling result

Winchester-1 hit the target Triassic interval higher than predicted, with gas shows in several sandstones, then an over-pressured zone with gas and water influx forced the well to be shut in at 3803m. Significance is being assessed.

drilling progress report

OMV formally committed to drill Matuku-1 in PEP 51906, meeting the 18 May 2013 deadline. Spud is set for mid-September on Kan Tan IV, to about 4756m, with Octanex free carried. OMV's mean estimate is about 65 million barrels if oil is present.

drilling scheduled

Winchester-1 was spudded by the Ensco-109 rig at 23:00 on 7 April 2013 in WA-323-P, targeting Triassic reservoirs to 4803m in about 80 days. Octanex's 25% is free carried. First result is awaited.

drilling spud

Ministerial consent makes the NZOG agreements unconditional. NZOG holds 12.5% of PEP 51906 and 50% each of PEP 53473 and PEP 52593. Octanex receives the first US$3m of US$12.5m on 22 February 2013, leaving 22.5% in Matuku.

farm in farm out completion

Octanex agreed to buy 25% of the Derby Block, onshore Canning Basin, from Oil Basins for $1.75m, plus 15m OBL shares at 3.5c ($525,000). A new onshore, shale-focused area for a company so far offshore. Conditional on permit grant; Buru to hold 50%.

asset acquisition disposition

OMV has contracted the Kan Tan IV rig to drill Matuku-1 from Q3 2013, with a slot for Matuku-2 if successful. Resolves the rig search. Octanex stays free carried; NZOG's US$12.5m is paid in three tranches, the last when the rig is on location.

drilling scheduled

Octanex signed deals with NZOG: US$12.5m for 12.5% of PEP 51906 (Matuku), leaving Octanex 22.5%, with options for a further 5%. NZOG also earns 50% of PEP 53473 (funding 75% of costs) and PEP 52593 (60%). Subject to ministerial and OMV approvals.

farm in farm out agreement

OMV committed to drill Matuku-1 in PEP 51906 before the 19 November 2012 deadline, so it keeps its 65%. Drilling is targeted for Q3/Q4 2013, subject to securing a rig, at ~4850m depth. Octanex's 35% is free carried; mean recoverable resource is ~65 mmbbl if hydrocarbons are present.

drilling scheduled

Shell spudded Palta-1 in WA-384-P on 14 October 2012 using the Noble Clyde Boudreaux rig, in about 1300m of water, expected to take 60-90 days to over 5000m. Octanex, which sold the permit in 2008, keeps discovery payments, a 1% royalty and re-conveyance rights.

drilling spud

WA-362-P and WA-363-P were renewed for 5 years from 23 August 2012, resolving the pending renewals. Octanex keeps 33.333% and stays free carried to the next well. If Eni drills, Octanex's interest drops to 20%. Work includes 500 km² 3D in year 4 and a well in year 5.

regulatory community update

Directors resolved that no call will be made on the 74,278,910 partly paid shares (OXXCB) before 31 March 2014, deferring the final 10c per share. This replaces the earlier expectation of a call due 31 Dec 2012; the directors say an earlier call would not serve shareholders.

security holder rights change

OMV confirmed Matuku in PEP 51906 as a valid structural closure with an estimated mean recoverable resource of about 65 million barrels (if hydrocarbons are present). It is seeking a rig for drilling in the first half of 2013, with Octanex's 35% free carried. OMV has not yet committed; the deadline is 19 November 2012.

resource reserve update

Octanex NZ was granted 100% of PEP 53473 in the Taranaki Basin, about 853 km² next to the producing Tui field. It must reprocess 1,000 km of 2D seismic within 12 months, with surrender rights at each stage. This is its fourth New Zealand permit.

regulatory community update

Directors resolved to distribute its Cue Energy and Orion (Petrel) shares as a special dividend: one Cue per five Octanex shares and one Orion per twenty, worth about 5.025c per share. Record date is 28 March 2012. Reasons given include franking credits and shedding non-core assets.

dividend declaration

The 10c call was paid on 70,664,272 partly paid shares (about 94%), raising $7,066,427; those shares are now paid to 15c and trade as OXXCB. The 4,537,637 unpaid shares are forfeited and go to auction on 9 February 2012.

capital raising announcement

Goldsborough agreed to earn 60% and operatorship of WA-422-P in the Southern Bonaparte by funding a 295 km² 3D survey and reprocessing existing 2D data. It adjoins Octanex's other Bonaparte permits. Subject to regulatory approvals.

farm in farm out agreement

Santos finalised a 675 km² Winchester 3D survey in WA-323-P/330-P, starting as early as 21 October 2011 and taking about 30 days. It also secured the Ensco 109 jack-up to drill the Winchester well in Q3 2012. Octanex's 25% is free carried.

contract award

Octanex declared a fully franked special dividend of 4 cents per share, payable equally on fully and partly paid shares. Record date is 28 November 2011 and payment on 12 December 2011.

dividend declaration

A third New Zealand permit, PEP 53537 (1,146 km², Taranaki), was granted on 5 July 2011 to a joint venture with OMV, with Octanex NZ holding 35% and OMV operating. The JV may surrender before taking on a drilling obligation. Seismic is expected in Q3 2011.

asset acquisition disposition

Octanex's Goldsborough subsidiary awarded Seabird Exploration a contract for at least 600 km² of 3D and about 1,000 km of 2D seismic over WA-422-P, 420-P, 407-P and 421-P in the South Bonaparte. Reprocessing of over 11,000 km of old 2D data is substantially complete.

contract award

The Santos farmout of WA-323-P and WA-330-P is now unconditional. Santos holds 75% and operates; Octanex keeps 25% free carried and receives A$7m for past costs. A Santos 3D survey is due in Q4 2011, then a well within three years.

farm in farm out completion

Galahad-1 has been plugged and abandoned after logging, ending the two-well Exmouth Plateau program following dry Gawain-1. Octanex's 20% was free carried through both wells and stays carried through any next well in either permit.

drilling result

Galahad-1 reached total depth of 3,448m with no hydrocarbon indications in the shallower Mungaroo sands, including the AVO-anomaly targets. A thin sand below them showed elevated gas; its significance is still to be analysed. Logging precedes planned abandonment.

drilling result

The OMV farmout of PEP 51906 became unconditional after New Zealand ministerial consent. OMV holds 65% and operates, and Octanex keeps 35% free carried. OMV will reimburse NZ$1m and start the 270 km² Matuku 3D survey, taking about 35 days. This completes the 25 March deal.

farm in farm out completion

Galahad-1 spudded at 06:30 WST on 24 April 2011, the second well of the Exmouth Plateau program after the dry Gawain-1. Surface casing is set and a pilot hole is being drilled. Octanex's 20% stays free carried.

drilling spud

Gawain-1 reached total depth of 3,963m with no hydrocarbons encountered in the final section from 3,778m. Wireline logs are next, then the well will be plugged and abandoned. Octanex's 20% stays free carried through Galahad-1. The company's pre-drill estimate for Gawain was 5 TCF, so this is a dry hole.

drilling result

Octanex's New Zealand subsidiary was granted a second Taranaki permit, PEP 52593 (over 3,500 km²), and has applied for a third, PEP 53473. The permit can be surrendered before a drilling commitment is due (by 1 April 2014). This extends the Taranaki position beyond PEP 51906.

asset acquisition disposition

OMV New Zealand farms into PEP 51906 in Taranaki, taking 65% and operatorship, with Octanex keeping 35% free carried. OMV pays for a 3D survey of at least 270 km² and reimburses up to NZ$1m of past costs. It must commit to a well by 19 Nov 2012 or hand the interest back. Subject to ministerial consent. This resolves the open farmout search.

farm in farm out agreement

Gawain-1 spudded at 03:00 WST on 12 Feb 2011, the first of the two Exmouth Plateau wells. The 36-inch conductor is cemented and 24-inch hole is being drilled. Octanex holds 20%, fully carried.

drilling spud

Octanex confirmed it will join the second well, Galahad-1 in WA-363-P, keeping a 20% fully carried interest rather than taking US$16m cash. With the Gawain-1 choice, it has passed up US$32m. Drilling is expected from late January 2011.

farm in farm out completion

Targets set for two Exmouth Plateau wells: Gawain-1 in WA-362-P and Galahad-1 in WA-363-P, both aiming at Triassic Mungaroo sands, with drilling expected late January 2011. Company estimates undiscovered gas of 5 TCF at Gawain (chance of success 13-27%) and 4 TCF at Galahad (22-30%).

drilling scheduled

Santos farms into WA-323-P and WA-330-P (Winchester area), taking 75% and operatorship. Santos will shoot 3D, drill one well and reimburse past costs; Octanex keeps 25% free carried. Conditional on approvals and permit renewals. This resolves the farmout search begun June 2010.

farm in farm out agreement

The 1-for-4 partly paid rights issue closed fully subscribed, raising $2,167,057 before costs from 43,341,151 shares at 25c (5c paid). Applications exceeded the small shortfall. A further 20c per share remains callable in 2011 and 2012.

capital raising announcement

The Supreme Court of Victoria gave final approval to the Goldsborough merger scheme. Octanex will issue 6,059,528 new shares to Goldsborough holders on 19 Nov, with deferred trading from 22 Nov. This completes the merger approved by Goldsborough members on 22 Oct.

business combination

OMV and Eni now intend to drill two back-to-back wells, one in WA-362-P and one in WA-363-P, starting mid-January 2011 for about 60 days, subject to approvals. Locations are due in about four weeks. Octanex pays nothing; its interest falls from 40% to 20% once the second well is formally committed.

drilling scheduled

Goldsborough members unanimously approved the merger scheme at all four meetings on 22 October. Court final approval is sought on 5 Nov, with new Octanex shares to be issued about 15 Nov. This moves the merger forward.

business combination

28.94m of 32.9m listed options (about 89%) were exercised by the 18 Oct record date, raising $1.49m; most paid only 5c. This may lift the rights issue by up to 7.23m shares to about 43.3m. The remaining 3.96m options expire 31 Dec.

capital raising announcement

Shell committed to drill a well in WA-384-P, planned for late 2011, avoiding reassignment of the permit to Octanex. A discovery would pay Octanex US$5m, with more payments and a 1% royalty possible. Shell gets extra time on WA-385-P; WA-394-P decision is due by February 2011.

farm in farm out completion

Octanex proposes merging with Goldsborough by scheme, issuing one Octanex share per five Goldsborough shares it doesn't hold, about 6.06m new shares. Octanex already holds 45.15%. The independent expert found it fair and reasonable for Goldsborough holders. No Octanex vote is needed.

business combination

Octanex announces a renounceable rights issue of one partly paid share per four held at 25c, with 5c payable now and 10c calls in Dec 2011 and Dec 2012. About 36.1m shares would raise about $1.8m initially, $9.0m if fully paid. Not underwritten.

capital raising announcement

Octanex's takeover offer for Orion lapsed on 1 June 2010 and was not extended, with the bid conditions unsatisfied. This ends the bid announced in February. Octanex keeps its Orion stake, about 8%.

business combination

Octanex lodged a replacement bidder's statement for Orion with softened conditions. The cash condition falls from $11m to $8.25m and the director-warranty condition is dropped. The 50.1% minimum acceptance condition remains. This responds to Orion's objections.

business combination

Octanex announced an intended conditional scrip bid for Orion Petroleum, one Octanex share per six Orion shares (about 7.25 cents each). It already holds 7.079% of Orion and opposes Orion's merger with Gas2Grid.

business combination

Cornea-3 reached 910.6 metres and found a 20.4 metre oil column, clearly defining the oil-water contact for the first time. No oil samples could be recovered because sand blocked the tools. Well plugged and abandoned as planned; Octanex holds 8%.

drilling result

OMV and ENI committed to drill a well on the Exmouth Plateau permits at their cost, with a new 3,955 km² 3D survey. Octanex chose to keep a 20% fully carried interest over taking US$16m. Drilling is expected in 2011. Resolves the 31 Dec election.

farm in farm out agreement

Cornea-3 spudded on 11 December 2009 in WA-342-P, where Octanex holds 8%. The well aims to gather modern logs and pressure and fluid data to judge whether the Cornea field, found by Shell in 1997, could be developed.

drilling spud

Octanex's NZ subsidiary won offshore Taranaki permit PEP 51906 (1,613 km²), next to the Maui, Tui and Maari/Manaia fields. Work programme: reprocess 1,500 km of seismic; commit to seismic or relinquish within 18 months, and to a well within 42 months.

regulatory community update

Octanex was admitted to the ASX Official List on 4 November 2009, with 177,428,104 shares and 32,901,372 options (exercisable at $0.25 by 31 Dec 2010) to be quoted from 6 November.

other

Prospectus for a placement of up to 1,000,000 shares at $0.30 to raise up to $300,000, issued mainly to qualify Octanex for admission to the ASX Official List. Not underwritten, no minimum subscription.

capital raising announcement