Each one in plain English, with the numbers worked through for a shareholder.
22 Jan 2007capital raising announcement● NeutralMajor
The placement closed on 19 January, raising A$920,000 through 9,200,000 CDIs at A$0.10. Martin Place gets a 2% management fee and 5% placement fee. Funds are for a new drilling program and working capital.
What it means for a shareholder
9.2m new shares at A$0.100 to raise about A$920,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Operator Samson's Green Canyon 29-2 Baxter Shale frac test flowed about 100 mcf/d plus 48 bbl/d of load water, from 305 ft of a 3,400 ft interval. Fall River calls it encouraging; it was funded by the operator and was not an earning well.
Audited accounts for the year to 30 September 2006 (C$): net loss C$2,044,719, revenue C$111,184, and cash C$215,127. The auditor gave a clean opinion. Total assets were C$6.17m.
8 Jan 2007capital raising announcement● NeutralMajor
Company mandated Martin Place Securities to place 9,200,000 CDIs at A$0.10 to raise A$920,000, with funds largely committed. The price is half the A$0.20 of the 2006 raising. Proceeds are for a new drilling program and cash flow.
What it means for a shareholder
9.2m new shares at A$0.100 to raise about A$920,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
ASX trading in the shares was halted because the annual report was filed late; the company expects filing by 8 January 2007. It blames the demands of dual Canadian and Australian reporting. Trading continues in Canada.
All five Sprowl wells are producing about 900 mcf/d and 25 bbl/d. The company says revenue will fall below projections on lower gas prices and output, and now expects about A$900,000 a year with a sixth well. Gruver 1-14 is next.
Sprowl 6-14 is connected to sales, with preliminary flow of 140-180 mcf/d plus 8 bopd while fluids still hold back gas. Fall River now has 5 producing Sprowl wells; the next well is due to spud shortly.
Sixth Sprowl well, Sprowl 5-14, expected to spud mid-September 2006, targeting Red Fork Sandstone at about 10,600 ft. Fall River holds 20%; fifth well still awaits completion.
Workover rig engaged for completion and fracture stimulation of Sprowl 6-14, starting around 5 September. Fall River holds 20%; Kaiser-Francis operates with 60% and R&M 20%.
Sprowl 6-14 reached 10,550 ft; logs show over 50 ft of net pay in a sand over 100 ft thick. Company says it should add significantly to production, but full evaluation awaits perforation and fracture stimulation.
Sprowl 6-14, the fifth Sprowl well, spudded 31 July 2006 targeting Red Fork Sandstone at about 10,000 ft. It follows the plan flagged in June; the company holds 20% and four wells are producing.
Next Sprowl well to spud early August 2006, with three more planned after it. Company expects about A$1.4 million cash flow over 12 months from its 20% interest. Four extra possible locations identified.
The directors' report for the six months to 31 March 2006 (unreviewed) showed a net loss of C$1,047,354 versus C$620,643 a year earlier. It restated that the next Baxter well would be a fracture-stimulated vertical, and that Lake David, Sunken Lake and South Wildwood needed further assessment.
Unreviewed half-year accounts to 31 March 2006, in Canadian dollars: six-month net loss of $1,047,354 and cash of $216,987. The notes record a working capital deficiency of $219,851 and no revenue at that date, before the listing raising.
Operations update: Sprowl now produces from 4 wells, and Baxter Shale is the primary focus, with a conventional fracture-stimulated vertical well planned. Interests: South Wildwood 25%, Lake David 25%, Sunken Lake 15%. Further work is being considered at these.
Fall River listed on the ASX, having raised A$6,371,650, and completed buying a 20% interest in the Sprowl gas field, Oklahoma, for US$2.6 million plus 1.5 million CDIs and 500,000 option CDIs. It now has gas production and cash flow from 4 wells.
Deed governing the convertible note issue, filed as a listing document. Administrative; it sets out the note terms already described in the activities update.
ASX circular confirming Fall River Resources (the company later known as Pilot Energy) joined the ASX list on 19 April 2006, with 61,983,050 CDIs and 12,743,301 options quoted from 20 April. Several escrowed securities are not quoted.
Statement of financial position at 30 September 2005, with pro-forma adjustment for the prospectus raising: cash of 6,445,108 rising to 6,816,758 and net assets of 6,259,808 rising to 6,631,458. Includes a convertible debenture liability of 1,005,333.
Fall River Resources was admitted to the ASX Official List on 19 April 2006. Quotation of 61,983,050 CDIs and 12,743,301 option CDIs starts 20 April. Largely repeats the ASX circular.
Top 20 shareholders list: together they hold 30,869,208 shares, 49.80% of 61,983,050 issued. The largest, CDS & Co, holds 9.14%. Administrative disclosure.
Top 20 option holders list: they hold 8,160,547 options, 64.41% of the class. Martin Place Securities and Ocean Financial each hold 14.67%. Administrative disclosure.
