Each one in plain English, with the numbers worked through for a shareholder.
29 Nov 2007capital raising announcement● NeutralMajor
Sun places up to 25.88M shares at 9.5c to Hartleys' clients, raising A$2.46M, so it can fund its half of a US$4.25M bond for Thailand block L20/50 on award. Follows the 7c entitlement issue weeks earlier.
What it means for a shareholder
25.9m new shares at A$0.095 to raise about A$2.5m. That's 11% dilution: every existing holder's slice gets 11% smaller. If you held A$1,000 of shares (10,526 at the issue price), your slice goes from 0.00528% to 0.00468% of the company. To keep it you'd need 1,367 more shares - about A$130 at the issue price.
Sun confirms issue of the 6,184,898-share underwriting shortfall at 7c, completing the entitlement issue. Issued capital is now 199,215,083 shares. Administrative notice with top-20 holder list.
Sun confirms the issue of 22,274,400 shares at 7c under the entitlement issue, with the ASX-required share statements attached. Administrative; the shortfall shares follow separately.
Entitlement issue closed with shareholders taking up $1,559,208 of the $1,992,151 raised at 7c. The $432,943 shortfall goes to Hartleys' clients under the underwriting. Funds are secured in full.
Raun #1 is at 5,065 ft, conditioning mud before drilling to the 6,500 ft casing point. Targets are still expected about 40 days after the 8 November spud. No new result.
Bondi's Raun #1 has spudded, drilling at 333 ft on 7 November. Targets are expected in about 40 days, with weekly updates. Sun holds 15% with a 30-76 bcfge target, the first of its Bondi-Coogee farm-in wells.
Matthew Battrick, 26 years in oil and gas and most recently General Manager at Pancontinental, joins the board and becomes Managing Director from 1 February 2008. This fills the vacancy left by Ashby's October resignation. Farrell reverts to non-executive chairman at financial year end.
The share registry sent shareholders the wrong version of the entitlement issue document on 30 October; the correct one is being re-sent with an apology. The closing date stays at 14 November. Administrative only.
Texon's first Bondi well, Raun #1, has a rig rigging up on a 60 ft pre-collared hole, with drilling due to start later in the week. Bondi targets 30-67 bcfge; Sun holds 15%, Texon 65%, Empyrean 20%.
Legal cleansing notice for the entitlement issue: about 28.46M shares at 7c to raise about $1.99M, taking shares to about 199.2M. If no holders take up, Hartleys and sub-underwriters could end up with up to about 14.3%.
What it means for a shareholder
28.5m new shares at A$0.070 to raise about A$2.0m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (14,286 at the issue price), your slice goes from 0.00717% to 0.00627% of the company. To keep it you'd need 2,041 more shares - about A$143 at the issue price.
Letter to shareholders on the 1-for-6 entitlement issue at 7 cents, underwritten by Hartleys for 6%. Record date is 26 October and acceptances close 14 November. Farrell and Woods sub-underwrite 220,536 and 1,000,000 shares. Repeats known terms.
September quarter report: Lake Long #9 (10%) is on sales, Margarita's six shallow wells had a 50% success rate, and Flour Bluff workovers lifted output above the 3 mmscfd goal from 1.35. Bondi (15%) drills Nov-Dec; Thailand results are due by late December quarter.
18 Oct 2007capital raising announcement● NeutralMajor
Sun launches a fully underwritten entitlement issue of about 28.46 million shares at 7 cents, one for six, raising about $1.99 million. Hartleys underwrites for a 6% fee. Funds go to US production cash flow and Thailand. Directors will take up their entitlements.
What it means for a shareholder
28.5m new shares at A$0.070 to raise about A$2.0m. That's 14% dilution: every existing holder's slice gets 14% smaller. If you held A$1,000 of shares (14,286 at the issue price), your slice goes from 0.00837% to 0.00717% of the company. To keep it you'd need 2,381 more shares - about A$167 at the issue price.
Operator Texon confirms it farmed out an extra 20% of its Bondi prospect, with 15% going to Sun and 5% to Empyrean. Texon keeps 65%. Drilling is expected before end of 2007. Matches Sun's own release the same day.
Sun farms into Texon's Bondi-Coogee prospect complex in Wharton County, Texas, earning 15% by paying 20% of Bondi #1's dry hole cost. Bondi targets 30-76 bcfe, with drilling in November-December. Sun has a 90-day option on Coogee (28-62 bcfe).
Managing Director Bill Ashby has resigned as director and executive. Sun has started recruiting a replacement through a consultancy and expects no undue short-term operational effect. It leaves a senior gap just as Thailand bids and US drilling advance.
Sun received Thai notice of qualification to bid on both blocks, with results expected October-November 2007. It cites untested gas-condensate potential of 160-350 bcf at offshore G3/50, where seven other consortia are bidding, and sole-bidder status onshore at L20/50.
Sun lodges its 2007 annual report for the year to 30 June 2007. The extract shows net cash flow expected to grow to $2.5-3 million in 2008 and four to six more wells planned, mostly deep South Texas prospects. Financial statements are not shown.
Roadshow presentation largely restates known projects and strategy. It adds a cash figure of about $1.0 million at 17 September 2007 and forecast net cash flow of $2.8 million for 2007/08. It expects Thailand acreage awards before year end.
Partner FAR reports Lake Long #9 is now producing 1.825 million cubic feet of gas and 50 barrels of condensate a day on restricted choke, with 4 million planned. Rest covers FAR's other wells. Nothing new for Sun, which holds 10%.
Flour Bluff D-13 now flows up to 1.86 million scfe a day, and Smith #1 is producing 306,000 scfe a day. Lake Long #9 has started production at 1.74 million cubic feet of gas a day on restricted choke, with a planned 4 million. Sun holds 10% of Lake Long.
Flour Bluff workovers are showing early gains: D-24 flowing 791,000 scfe a day and D-13 1.3 million scfe a day, against a goal of lifting field output from 1.6 to over 3 million scfd. D-19 and Smith #1 work continues. Follows the delayed West well news.
Sun says it bid in Thailand's 20th round for two blocks: offshore G3/50 with Adelphi (8 bidders) and onshore L20/50 with Carnarvon (sole bidders), each 50%. Winners are expected around October 2007. This is the SE Asia move flagged in May.
Partner Carnarvon says it has bid for onshore Thailand Block L20/50 (3,947 km²) for a joint venture with Sun, each applying for 50%, with Carnarvon as operator. They are the only applicants; the outcome is pending. Continues Sun's SE Asia strategy.
Operator advises the second-phase Margarita shallow program is finished: Dona Carlota and Agavero are gas discoveries (1.3 bcf gross recoverable), while Climaco was plugged and abandoned as non-commercial. This confirms Climaco's earlier no-pay result. Partner Victoria's release; Sun holds 20%.
Sun confirms the three-well Margarita shallow program is complete: Dona Carlota and Agavero are gas discoveries awaiting or on sales, and Climaco was plugged and abandoned as non-commercial. Dona Carlota is on sales at 500 mscfd, targeting about 1 million. Sun holds 20%.
Agavero-1 flowed 647,000 cubic feet of gas a day with no water and will be tied into a pipeline. Climaco-1 hit a high-pressure gas zone with no pay, causing cost and rig changes; it is drilling at 1,830 metres toward a deeper target, now TD 2,067 metres. Sun holds 20%.
