30 Sept 2014annual report▼ Bad
Year to 30 June 2014 shows a loss of $3,445,907, including an $11,757,478 pre-tax impairment of exploration assets, against a $177,022 loss in 2013. The year's investments were Ophir Production and Peak Oil & Gas.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
29 Sept 2014asset acquisition disposition▼ BadMajor
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.
19 Sept 2014business combination● Neutral
Following ASX enquiries, Peak set out the merger conditions: Peak holds 75% of Renco Elang Energy, which has 51% of South Block A, and the scheme depends on that contract staying in good standing. Mostly restates known terms.
7 Aug 2014joint venture update▼ Bad
The Peak-Cadco settlement was terminated after Cadco failed to pay the $6.7m, and arbitration resumes. Octanex's loan to Peak is not repaid, and the merger stays at 1 Octanex share per 24 Peak shares, with the bonus still conditional.
28 July 2014joint venture update▲ Good
Peak announced a conditional Cadlao settlement paying about $6.7m. If completed, Peak would repay Octanex's $1.1m loan, and the merger terms would become 1 Octanex share per 12 Peak shares including the bonus. Still conditional.
24 July 2014debt financing▲ GoodMajor
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.
23 June 2014joint venture update● Neutral
The EP 487 flora and fauna survey finished 20 June 2014. Oil Basins is in an unresolved dispute with Backreef and its proposed assignee Buru over costs and the permit's future, and cites the $1.75m Octanex transaction. Octanex's JVOA and registration remain open.
30 May 2014joint venture update● Neutral
Operator Oil Basins says it is about to start a flora and fauna survey ahead of 500 line km of 2D seismic on EP 487, the Derby permit Octanex is buying 25% of. Oil Basins will fund the survey in the interim. First work on the permit.
21 May 2014other● Neutral
Octanex set up a Directors Share Savings Plan: between 20% and 100% of a director's fee is used to buy existing Octanex shares, held at least six months. Administrative; no new shares are issued.
20 May 2014debt financing● Neutral
Details of Octanex's loan to Peak: monthly drawdowns, interest at NAB overdraft rate plus 2%, secured by a charge over Peak's assets, covering Peak to end-2014. ASX granted a Listing Rule 10.1 waiver. If the scheme fails, Peak must repay Octanex.
20 May 2014business combination● NeutralMajor
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.
20 May 2014business combination● Neutral
Peak's own release of the Implementation Agreement with Octanex: 1 Octanex share per 24 Peak shares, plus a contingent further 1 per 24 tied to the Cadlao dispute. Octanex funds Peak's budget to end-2014. Duplicates Octanex's announcement of the same date.
8 May 2014regulatory community update● Neutral
Enegex, a Cornea joint venture partner (14.875%), repeats the grant of retention lease WA-54-R over about 497 km² for 5 years from 6 May 2014. Octanex holds 18.75%. Studies come first, then a production test well in Year 4. Duplicates the earlier Octanex news.
8 May 2014regulatory community update▲ GoodMajor
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.
22 Apr 2014regulatory community update▲ Good
The Mohua 2D seismic survey (203.65 km) was acquired in PEP 53537 by 22 April 2014, fulfilling the permit's Year 3 work programme. Octanex holds 35% with OMV as operator. It ties to the Matuku-1 well and targets leads near the Kahurangi Trough.
24 Mar 2014regulatory community update▲ GoodMajor
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.
6 Mar 2014half year report▲ Good
Half-year to 31 December 2013 shows a profit of $5,725,320 against a loss of $251,999 a year earlier. Octanex put in about $1.317m for the Peak rights issue, net of fees; Peak merger scheme terms are still to be agreed. Cause of profit not stated in the text shown.
5 Feb 2014other● Neutral
NZOG says the Kan Tan IV rig has been handed to the Tui joint venture for Pateke-4H. Octanex is not a participant in that well; it is an NZOG item with no substance for Octanex.
31 Jan 2014drilling progress report● Neutral
NZOG confirms Matuku-1 is plugged, with commercial oil and gas not present, and the Kan Tan IV rig moves to NZOG's Pateke-4H well in the Tui fields. Duplicates Octanex's final report; the Tui permit is not an Octanex interest.
31 Jan 2014drilling result▼ BadMajor
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.
23 Jan 2014regulatory community update▲ Good
The Kaka 3D survey in PEP 51906 finished on 18 January, acquiring 403.8 km² plus 67.4 km² of tie lines, well above the 310 km² Year 5 minimum. With Matuku-1 drilled, the permit's Year 5 obligations are met.
21 Jan 2014drilling progress report● Neutral
Matuku-1 reached total depth of 4,846m and is being wireline logged before plug and abandonment as planned. Octanex's 22.5% remains free carried; no new results beyond the earlier water-bearing, no-shows reports.
20 Jan 2014drilling progress report▼ Bad
NZOG reports Matuku reached total depth of 4846m on 18 January; the primary F sands had no significant shows, with oil shows in the D Sands and deeper North Cape units. The 400 km² Kaka 3D survey also finished ahead of schedule.
16 Jan 2014other● Neutral
NZOG says its share price has been affected by the Matuku news of no significant shows in the primary target. It says no new information has emerged and the full view awaits drilling completion and analysis. Adds nothing new on Octanex's holding.
16 Jan 2014drilling progress report▼ Bad
Matuku-1 at 4,307m: the upper North Cape (K90) sandstones were less porous than the F sands, water-bearing, with no significant shows. Both main targets are now without hydrocarbons; the well will go to 4750m and then be plugged and abandoned as planned.
14 Jan 2014drilling progress report▼ Bad
NZOG reports Matuku-1 hit the Farewell F sands at 3935m: porous, but no significant gas or oil shows. Drilling continues to 4754m, then logging. Duplicates Octanex's report of the same day.
14 Jan 2014well test result▼ Bad
Matuku-1 at 4,000m: the primary Farewell F sands (at 3,935m) were porous but had no significant gas or shows, and the D Sands were water-bearing with oil shows. A weak early result for the well OMV had put at about 65 mmbbl mean if successful.
13 Jan 2014drilling progress report● Neutral
NZOG reports Matuku-1 at 3913m on 12 January, drilling to a planned 4754m. Duplicates Octanex's own reporting and restates the NZOG option over a further 5% if the well succeeds; no results.
7 Jan 2014drilling progress report● Neutral
Matuku-1 at 3417m on 7 January, with 9⅝-inch casing cemented and the 8½-inch hole about to start through the target zones. Continues the earlier casing and sidetrack work; no hydrocarbon results yet. Octanex's 22.5% remains free carried.
7 Jan 2014drilling progress report● Neutral
A new 400 km² Kaka 3D seismic survey began on 7 January 2014 in PEP 51906, where Octanex holds 22.5%. It will complete and exceed the permit's Year 5 work obligations (one well plus at least 310 km² of 3D), and is expected to take 23 days.