19 Jan 2011drilling progress report● Neutral
Rig mobilisation has begun for the Thailand programme, with some equipment due at the Tapao Kaew-1 site by 21 January. Sun will update on rig-up and spud timing. Otherwise repeats known prospect details.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
19 Jan 2011other● Neutral
Raisama (ASX: RAI), which has an agreed takeover offer for Peak Oil & Gas valuing it at A$39M, re-released Sun's rig mobilisation news. It confirms Peak is earning 7.5% of L20/50 from Sun. Third-party announcement, no new Sun information.
17 Jan 2011farm in farm out agreement▼ Bad
The deadline for signing the definitive NW Europe farm-in was extended from 31 December 2010 to 28 February 2011. The deal is still a non-binding term sheet for 15% of a 720 bcf gas prospect; the well has slipped from Q2 to possibly Q3 2011.
7 Jan 2011drilling scheduled● Neutral
Sun says the multi-well Thailand programme will start the week of 17 January 2011, with Peak carrying Sun through the first well (21M barrel target). Sun keeps 42.5%. Repeats known facts and timing.
6 Jan 2011drilling scheduled● Neutral
Operator Carnarvon says operations at L20/50 start 17 January 2011 with rig mobilisation. Tapao Kaew site is essentially complete, Krai Thong ready by end of January, and Chalawan by mid-late February. Wells take 2-3 weeks each. Repeats the earlier January start plan.
30 Dec 2010other● Neutral
Sun released its Securities Trading Policy, effective 1 January 2011, as required by the listing rules. It is a governance document with no new operational or financial information.
24 Dec 2010director officer appointment● NeutralMajor
Chairman Dr Brad Farrell, a director for over 18 years, will retire from the board on 28 February 2011 and stay as a substantial shareholder. A replacement chairman will be announced separately.
23 Dec 2010security holder rights change● Neutral
4,800,000 partly paid contributing shares (issued 2005) lapse on 30 December 2010. Sun then has 444,369,734 ordinary shares and 5,680,300 convertible notes. Administrative clean-up with no cash or funding effect stated.
21 Dec 2010farm in farm out agreement▲ GoodMajor
Sun signed a binding agreement letting Peak earn a capped 7.5% of L20/50, replacing the earlier term sheet for up to 20%, after Peak pursued a different deal to its IPO. Sun keeps 42.5% and is free-carried through the first well; drilling targets January 2011.
14 Dec 2010drilling scheduled▲ Good
Carnarvon says road and well-site works are well advanced and the Asia Drilling AD-1 rig is contracted for up to three L20/50 wells, starting January 2011. This resolves the open rig-contract question. Interests shown are Sun 42.5%, Carnarvon 50%, Peak 7.5%.
7 Dec 2010capital raising announcement▲ GoodMajor
The share purchase plan closed fully subscribed, raising A$2M. Sun says cash is over A$8M, which it states fully funds the up-to-four-well Thailand and NW Europe programme. This completes the November raising; new shares are allotted around 9 December.
3 Dec 2010investor presentation● Neutral
December investor briefing repeats known facts: two firm wells plus one contingent in Thailand, a spud in mid/late January 2011, and the European gas farm-in. It now quotes 90M barrels combined potential, up from 80M. Cash is quoted at A$6.7M.
2 Dec 2010debt financing● Neutral
Sun will pay A$95,128 interest on its 12% convertible notes on 31 December 2010 (1.6636 cents per note, 92 days). Routine servicing.
29 Nov 2010drilling scheduled▲ GoodMajor
Sun and Carnarvon agreed to make two wells firm, with a third contingent, to test over 80M barrels of speculative potential. Tapao Kaew-1 (21M barrels) is first, spudding mid-January 2011, then Krai Thong (37M barrels). This is up from one firm well previously planned.
12 Nov 2010capital raising announcement● Neutral
Share purchase plan documents sent to eligible shareholders: up to A$15,000 each at 6.7c, a 19.1% discount to the recent average price. It closes 1 December 2010 and raises a maximum of A$2M (29.85M shares). Administrative follow-up to the 10 November raising.
11 Nov 2010investor presentation● Neutral
AGM presentation repeats known facts: three Thai prospects, Peak's carry, the European gas farm-in and the placement. It shows cash of A$6.7M at 11 Nov including placement proceeds, and shares rising to 414.3M after the placement. No new results.
10 Nov 2010capital raising announcement● NeutralMajor
Sun is raising up to A$5.025M through a placement of up to 75M shares at 6.7c, plus up to A$2M from a share purchase plan at the same price. The money funds the Thailand drilling and the proposed NW Europe gas farm-in. The second 25M-share tranche needs shareholder approval around 13 Dec 2010.
What it means for a shareholder
75.0m new shares at A$0.067 to raise about A$5.0m. That's 18% dilution: every existing holder's slice gets 18% smaller. If you held A$1,000 of shares (14,925 at the issue price), your slice goes from 0.0044% to 0.0036% of the company. To keep it you'd need 3,300 more shares - about A$221 at the issue price.
Create a free account to see this worked out for your own holding.
9 Nov 2010farm in farm out agreement▲ GoodMajor
Sun signed a non-binding term sheet to earn 15% of a 720 bcf gas prospect onshore North-West Europe, paying about €1.645M (A$2.3M) of past and future costs. Drilling is targeted for Q2 2011. Counterparty is undisclosed; a definitive agreement is due by 31 Dec 2010. This is a new venture beyond Thailand.
1 Nov 2010farm in farm out completion▲ GoodMajor
Peak Oil & Gas finished due diligence, so all conditions for its first-well obligation are met. Peak will carry Sun through the first well for A$1.3M, earning 7.5% of L20/50. A second-well carry depends on Peak's IPO. Resource target is now quoted as over 80M barrels, up from 60M.
30 Sept 2010debt financing● Neutral
Sun paid convertible note interest on 30 September 2010 and listed its ten noteholders. Macquarie Bank is the largest with 5,454,546 notes. Administrative.
30 Sept 2010security holder rights change● Neutral
The convertible note conversion rate is reset to 6.77 shares per note for the December 2010 quarter, down from 8.63. Routine reset under the trust deed.
21 Sept 2010annual report● Neutral
2010 annual report lodged, with the AGM set for 11 November 2010. The provided text shows highlights: 548 km of seismic, 23 leads, Peak's US$3.43M free carry. The chairman cites the five best prospects at up to 150M barrels speculative.
9 Sept 2010regulatory community update▲ GoodMajor
Thai authorities approved all nine environmental impact assessments for L20/50, so environmental approval is in place for the late-2010 campaign of one firm and two contingent wells. Well designs still need approval. Sun's 50% falls to at least 30% after Peak's farm-in.
7 Sept 2010investor presentation● Neutral
Good Oil Conference presentation repeats known facts: three drill-ready L20/50 prospects, drilling from December 2010, and the Peak free-carry. Cash was A$3.4M at 30 June 2010, with 99 boepd net US output.
2 Sept 2010debt financing● Neutral
Sun will pay A$95,128 interest on its 12% convertible notes on 30 September 2010 (1.6636 cents per note, 92 days). Routine servicing.
24 Aug 2010farm in farm out agreement▲ GoodMajor
Peak Oil & Gas signed a binding term sheet to earn up to 20% of L20/50 by carrying up to US$3.43M of Sun's well costs. Sun keeps at least 30%. This addresses the drilling-cost question; it is subject to JV, due diligence and government approvals.
5 July 2010security holder rights change● Neutral
The convertible note conversion rate is reset to 8.63 shares per note for the September 2010 quarter, up from 5.87. Routine reset under the trust deed.
1 July 2010security holder rights change● Neutral
4,000,000 unlisted 10c options lapsed unexercised on 30 June 2010. Remaining securities include 339.26M shares and 5.72M convertible notes. Administrative.
30 June 2010drilling scheduled▲ Good
Carnarvon reports environmental impact assessments for the three most promising L20/50 targets were submitted on schedule. Leases are signed and rig selection is well advanced, so drilling is on track for late 2010. Sun holds 50%.
2 June 2010debt financing● Neutral
Sun will pay A$94,094 interest on its 12% convertible notes on 30 June 2010 (1.6455 cents per note, 91 days). Routine servicing.