31 July 2015investor presentation● Neutral
Investor briefing repeats known points post-raising. Shares on issue are 4,472M at A$0.001, giving market capitalisation A$4.5m. Net cash is A$3.2m. Hancock holds 13.8% and Amerril 7.3%.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
30 June 2015admin correction● Neutral
Compliance disclosure on the June placement: 255,369,890 shares issued under the 7.1A capacity, 8.1% dilution, no underwriter and a 6% cash fee. No new information beyond the raising already announced.
26 June 2015director officer appointment● Neutral
Non-executive director Damian Kestel resigned from the board effective 30 June 2015 after over three years, citing personal reasons. He suggested a new director with a US focus could be added. He remains a shareholder.
24 June 2015capital raising announcement● NeutralMajor
Sun raised a further $1,000,000 through a placement of 625M shares at $0.0016, the same price as the earlier share purchase plan. Bell Potter was lead manager. Funds are for Jack Howe frac planning, exploration review and working capital while it seeks a partner.
What it means for a shareholder
625m new shares at A$0.0016 to raise about A$1.0m. That's 14% dilution: every existing holder's slice gets 14% smaller. If you held A$1,000 of shares (625,000 at the issue price), your slice goes from 0.0162% to 0.014% of the company. To keep it you'd need 101,554 more shares - about A$162 at the issue price.
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12 June 2015other● Neutral
Duplicate of the Computershare notice that its Perth office moves on 15 June 2015. Administrative re-release with no substance.
12 June 2015other● Neutral
Computershare, the share registry, is moving its Perth office on 15 June 2015. Administrative notice only, with no substance for the company or shareholders.
12 May 2015asset acquisition disposition▲ GoodMajor
Sun signed the binding Amerril agreement, converting the April term sheet: 100% of Normangee, Jack Howe #1H, SW Leona and Centerville, with JVs and AMIs ended. Sun will tender US$2m on a sale or partner, over about four months. Amerril accepted a 90-day share standstill.
4 May 2015capital raising announcement● NeutralMajor
The share purchase plan raised $927,500, topped up by Patersons' shortfall to the $1m underwritten amount, plus a $95,000 placement, totalling $1,095,000. About 684.4M new shares are issued at $0.0016. Funds go to frac planning, exploration review and working capital.
What it means for a shareholder
684m new shares at A$0.0016 to raise about A$1.1m. That's 16% dilution: every existing holder's slice gets 16% smaller. If you held A$1,000 of shares (625,000 at the issue price), your slice goes from 0.0171% to 0.0144% of the company. To keep it you'd need 117,114 more shares - about A$187 at the issue price.
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30 Apr 2015quarterly activities report● Neutral
March quarter report restates the 24 April Amerril term sheet: Sun to hold 100% of Normangee and Jack Howe #1H, with US$2m owed to Amerril on a partner or sale. Jack Howe frac re-bid, still targeting June 2015. SPP closed 24 April.
24 Apr 2015asset acquisition disposition▲ GoodMajor
Under a non-binding term sheet, Amerril will assign its interests so Sun holds 100% of Normangee including Jack Howe #1H, SW Leona and Centerville. Sun owes Amerril US$2m deferred, payable if a new partner joins or the interests are sold. This resolves the Amerril issues; a definitive agreement is still needed.
20 Apr 2015other● Neutral
Managing Director's letter to shareholders restating known points: Jack Howe frac re-bid for June 2015, speculative farm-in talks, Buda potential, and the share purchase plan closing 24 April. No new results or figures.
17 Apr 2015drilling progress report● Neutral
Sun will re-bid the Jack Howe #1H frac, now targeting June 2015 (slipped from early 2015), expecting a 20% cost reduction. Farm-in talks to fund it were speculative. Presco's Samuel #1H (Buda) and EOG's Zeus #2H (Lower Woodbine) had not yet been fracked, as operators waited for oil prices to recover.
9 Apr 2015capital raising announcement● Neutral
Offer document for the $1m underwritten share purchase plan, with applications of $1,000 to $15,000 at a 20% discount to the five-day average price. Nothing new beyond the 2 April announcement; note the text gives conflicting closing dates (24 April and 24 May).
8 Apr 2015admin correction● Neutral
Routine ASIC Class Order notice that the share purchase plan can be offered without a prospectus. The company states it has met its disclosure obligations. No new substance.
2 Apr 2015capital raising announcement● NeutralMajor
Sun will offer a $1m share purchase plan, fully underwritten by Patersons, at a 20% discount to the five-day average price. Eligible holders can apply for up to $15,000. Funds are for frac planning, exploration review and working capital. Directors will each take $15,000.
31 Mar 2015investor presentation● Neutral
Investor briefing refocused on Normangee, Delta, Southern Woodbine and Badger (10%). Sun targeted a 50% farm-out to fund the Jack Howe frac, with four companies in talks. Audited net cash was A$1.2m at 31 December 2014, with the share price at $0.002.
13 Mar 2015half year report▼ BadMajor
Half-year to 31 December 2014 shows a net loss of $44.9m, including a $43.9m exploration impairment attributed to the sharp oil price fall and expired leases. This writes down the Texas assets built up earlier. Also repeats the Hancock convertible loan.
18 Feb 2015debt financing● NeutralMajor
Sun entered a A$957,806 convertible loan from Winform, a Hancock Prospecting subsidiary (Hancock is the largest shareholder). Interest is 5%, repayable within 18 months or on a raising of $5m or more. It may convert to shares with shareholder approval. Secured over Sun's Badger leases.
30 Jan 2015quarterly activities report● Neutral
December quarter report: Jack Howe #1H frac targeted early 2015, subject to cost reductions from the oil price fall. Badger initial well deferred because of low oil prices, with Sun's cost for it zero at 10%. Directors and the MD are taking shares in lieu of cash.
11 Dec 2014drilling progress report● Neutral
Sun has shortlisted fracking contractors for Jack Howe #1H, now targeting early 2015 (previously October 2014). EOG's nearby Buda well flowed 330 bopd (1-day). Directors will take shares instead of cash fees for at least three months from 1 January 2015, citing the oil price fall.
1 Dec 2014admin correction● Neutral
Disclosure of details on the September placement: 243.5M shares issued under the 10% capacity, about 10% dilution, with a 6% cash fee and no underwriter. Compliance information only, nothing new.
24 Nov 2014farm in farm out completion● NeutralMajor
Sun cut its Badger Oil Project interest from 50% to 10%, with Ursa keeping 90%. Sun exits the initial well's drilling unit, so it has no cash obligation for that well, expected to spud before end 2014. This replaces the earlier plan for Sun to fund 50%, freeing cash for its operated Woodbine acreage.
17 Nov 2014admin correction● Neutral
53.65 million unlisted director, management and employee options (3.6c to 7.6c) lapsed, with an updated Appendix 3B. Shares on issue shown as 3.162 billion. Administrative; no cash impact.
13 Nov 2014drilling progress report● Neutral
Jack Howe #1H frac design is finalised and will go to competitive bid among local service companies; no date or result yet. Directors say they took up their full rights entitlements and are working to place the shortfall.
12 Nov 2014director officer appointment● NeutralMajor
Matthew Battrick was appointed Managing Director and CEO on 12 November 2014, after acting as CEO since Dr van Ek resigned on 9 July. He held the role previously from 2008 to 2013. Salary is A$390,000 on a two-year term. This resolves the permanent CEO search.
6 Nov 2014agm notice● Neutral
All three AGM resolutions passed on a show of hands: remuneration report, re-election of Damian Kestel, and the 10% placement facility. Administrative; proxy votes against were small.
31 Oct 2014quarterly activities report● Neutral
September quarter report recaps Jack Howe #1H drilled to 14,740 ft and cased, with frac planning nearly complete, and the Davis #1 dry hole. Raising totalled $5.1m with a non-underwritten shortfall open to 3 January 2015. Mostly known items.
10 Oct 2014investor presentation● Neutral
October investor presentation repeating known facts: up to 38,697 gross (23,217 net) acres, Jack Howe oil pay confirmed and near-term fraccing planned. No new results seen in the excerpt.
9 Oct 2014drilling progress report● Neutral
Nabors rig released from Jack Howe #1H. Frac design is being modelled in Dallas, to be bid out to local service companies and expected to mirror neighbouring EOG wells. No new results; frac timing still not fixed.
7 Oct 2014capital raising announcement▼ BadMajor
Rights issue closed with only 118.4M of 608.7M shares taken up ($1.18m); placement plus rights raised $5.1m versus about $10m targeted. Underwriting was terminated by a breached termination event, so up to $4.9m shortfall is at directors' discretion until 3 Jan 2015. Sun is also discussing bringing in a joint venture partner for the frac.
What it means for a shareholder
609m new shares at about A$0.0084 to raise about A$5.1m. That's 14% dilution: every existing holder's slice gets 14% smaller. If you held A$1,000 of shares (119,353 at the issue price), your slice goes from 0.00327% to 0.0028% of the company. To keep it you'd need 19,891 more shares - about A$167 at the issue price.
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