7 Jan 2014drilling progress report● Neutral
NZOG reports Matuku-1 at 3417m on 6 January 2014, with 9⅝-inch casing cemented at 3409m. The 8½-inch section to a planned 4754m, through the target zones, is about to begin.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
31 Dec 2013capital raising announcement● Neutral
Peak's revised offer booklet for its fully underwritten (by Octanex) 2-for-5 rights issue at 1 cent, raising about $1.943m, with a timetable change. Record date 6 January 2014. Merger terms with Octanex remain to be settled in Q1 2014.
31 Dec 2013drilling progress report● Neutral
Matuku-1 at 3365m on 31 December, drilling towards 3404m after a cement plug was set over suspected junk in the hole. Target 4750m depth unchanged; no results yet.
30 Dec 2013drilling progress report▼ Bad
NZOG reports a cement plug set across suspected debris at the base of Matuku-1 (3167m), with a sidetrack to 3400m next. First sign of a operational hitch; no results.
24 Dec 2013drilling progress report● Neutral
Matuku-1 at 3167m on 24 December, preparing to drill ahead before running 9⅝-inch casing. Still above the target zones; no results.
20 Dec 2013drilling progress report● Neutral
NZOG's update: Matuku-1 drilled to 2867m by 19 December, next drilling to 3400m before running casing. Duplicates Octanex reporting; no results.
17 Dec 2013drilling progress report● Neutral
NZOG's weekly update: Matuku-1 at 1569m on 16 December with blowout preventers installed and tested. Duplicates Octanex's own reporting; no results.
17 Dec 2013drilling progress report● Neutral
Matuku-1 at 2002m on 17 December, drilling ahead in the 12¼-inch hole. No hydrocarbon results reported.
10 Dec 2013drilling progress report● Neutral
Matuku-1 at 1500m on 10 December, with 13⅜-inch casing cemented. Next steps are installing blowout preventers and drilling to 3407m. No hydrocarbon results yet.
5 Dec 2013regulatory community update▲ GoodMajor
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.
2 Dec 2013drilling spud● Neutral
Partner NZOG reports Matuku-1 began drilling on 30 November, expected to take 45 days to about 4750m. Duplicates Octanex's own spud news and restates the option for NZOG to earn a further 5% if the well succeeds.
2 Dec 2013asset acquisition disposition▲ GoodMajor
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.
2 Dec 2013drilling spud▲ GoodMajor
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.
28 Nov 2013other● Neutral
Chairman's AGM address says the company is broadening beyond exploration to include near-term production assets, citing the Peak underwriting and merger, the Derby Block and a Kuala Lumpur office. Largely restates known developments, with the strategy rationale stated explicitly.
28 Nov 2013investor presentation● Neutral
AGM presentation restates known facts: cash $14.47m at 30 September 2013, about 152m fully paid shares, share price $0.24 and market cap $47m, plus the Peak merger and SE Asia push. No new announcements.
18 Nov 2013drilling scheduled▲ Good
Operator OMV says Matuku-1 will spud within 5 days, likely 22 November, with the Kan Tan IV rig handed over 19 November. Octanex's 22.5% is free carried; OMV's mean estimate is about 65 mmbbl if hydrocarbons are present. Final US$6.25m NZOG payment is due once the rig is on location.
15 Nov 2013business combination● Neutral
Duplicate of the 15 Nov release: Octanex will fully underwrite Peak's $1.943m rights issue (2-for-5 at 1 cent) and work towards a scheme merger giving Peak holders Octanex shares worth at least 1 cent each. Albers will not vote.
15 Nov 2013business combination● NeutralMajor
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.
29 Oct 2013annual report● Neutral
Glossy 2012–13 annual report restating the year's events: Winchester gas discovery, Cornea location, NZOG sale and Matuku-1 with a free-carried 22.5% interest. Also mentions a Kuala Lumpur office opened to seek South-East Asian opportunities, a strategy widening.
18 Oct 2013security holder rights change● Neutral
Directors resolve that no call will be made on the 74,278,910 partly paid shares (OXXCB) before 31 December 2015, pushing out the earlier 31 March 2014 date. Each share still has 10 cents unpaid.
27 Sept 2013annual report● Neutral
Annual financial report for the year to 30 June 2013: loss of $177,022 versus a $1.71m profit in 2012, with no dividend. Octanex holds working interests in 17 permits. The Derby Block farm-in still awaits permit grant and conditions.
16 Sept 2013other● Neutral
NZ Oil & Gas launches a global marketing campaign seeking farm-in partners for four Taranaki permits, including PEP 53473 and PEP 52593 where Octanex holds 50%. Notes Kokako and Karoro 3D interpretation due November 2013 and drill commitments in March 2014.
16 Sept 2013farm in farm out agreement● NeutralMajor
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.
19 Aug 2013resource reserve update● Neutral
Moby (22.375% holder in Cornea) reports the joint venture's Cornea contingent resources: best-estimate 28.8 mmbbl oil (range 7.9–101.9) and 67.1 Bcf gas. Duplicates Octanex's own release; no new information for Octanex holders.
19 Aug 2013asset acquisition disposition▲ Good
Octanex received the second US$3.25m tranche from NZOG for the 12.5% PEP 51906 interest, after Matuku-1 drilling consents. The final US$6.25m is due when the Kan Tan IV rig is on location, expected mid to late September. Total deal US$12.5m.
19 Aug 2013resource reserve update▲ GoodMajor
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.
16 Aug 2013resource reserve update▲ GoodMajor
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.
5 Aug 2013drilling progress report● Neutral
The Winchester-1/ST-1 joint venture called total depth at 4019m after losses and further over-pressured zones made deeper drilling in the 6-inch hole challenging. Final logging and abandonment have begun; log analysis continues.
1 Aug 2013other● Neutral
Cott Oil and Gas, which holds 33.34% of a permit next to WA-384-P, repeats the Palta-1 failure and says it will review its plans for that permit. Adds nothing new for Octanex.
1 Aug 2013drilling result▼ BadMajor
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.