13 Mar 2020auditor change● Neutral
HLB Mann Judd replaced BDO as auditor from 12 March 2020, following an audit tender in December 2019. BDO resigned with ASIC's consent. The board will seek ratification at the next AGM.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
5 Feb 2020resource reserve update▲ GoodMajor
Independent auditor NSAI booked Bowsprit T1 2P reserves of 330,000 bbls, up from contingent resources, worth US$6.4m (NPV10). T2 prospective resources are 1.8 MMbbls mid case, 25% chance of success. Drilling is expected Q2 2020, still needing a farm-out partner.
31 Dec 2019capital raising announcement● NeutralMajor
Now named Prominence Energy, the company raised A$250,000 via a short-term convertible note from existing shareholders, 10% coupon, repayable 31 March 2020. Conversion is at a 20% discount. GTT's half needs shareholder approval. It funds working capital while farm-out talks continue.
29 Nov 2019investor presentation● Neutral
AGM presentation on Bowsprit, noting the company is being renamed. Shows 100% interest in 1,154 acres. Visible text is disclaimers and a summary; no new results evident.
28 Nov 2019listing compliance notice▼ Bad
ASX queried the company's cash after the quarter showed A$241,000 cash and A$588,000 operating outflow. Sun expects continued cash burn and is in farm-out talks, with a raising considered afterwards. It says directors and major shareholders are expected to keep supporting it. Third such query.
28 Nov 2019regulatory community update▲ GoodMajor
All three permits to drill Bowsprit-1 are now granted, ahead of schedule and valid 12 months. Two operators offered tie-in processing at under US$2/bbl, with a pipeline under US$1m. Drilling is still Q1 2020, subject to farm-out or funding.
1 Nov 2019regulatory community update▲ Good
The US Army Corps of Engineers granted authorisation to drill Bowsprit 1, the second of three permits. The remaining St Bernard Parish and Port Authority approval is expected within 30 days. The well still needs farm-out or funding, targeted Q1 2020.
1 Nov 2019other● Neutral
Corporate governance statement checklist (Appendix 4G) lodged with the annual report. Administrative only, no new business information.
29 Oct 2019annual report● Neutral
Annual report to 30 June 2019. The chairman calls the year frustrating because the Bowsprit partner would not fund work. Sun now holds 100% after the July deal, raised A$615,000 in August, and proposes renaming the company Prominence Energy NL at the AGM.
22 Oct 2019regulatory community update▲ GoodMajor
Louisiana's coastal office granted the first of three permits to drill Bowsprit 1. The other two (St Bernard Parish/Port Authority and Corps of Engineers) are expected in 30-45 days. The well still needs farm-out or funding, targeted Q1 2020.
30 Sept 2019annual report● Neutral
Annual accounts to 30 June 2019 recap the Pinnacle buyout to 100% of Bowsprit and say A$727,000 of new equity was raised since. Focus is on appraising Bowsprit and using US tax losses. Financial figures are not in the visible text.
12 Sept 2019investor presentation● Neutral
Good Oil Conference presentation by the CEO on the Bowsprit project, with 100% interest and a Q1 2020 well. The visible text is disclaimers and an executive summary; no new facts are evident.
11 Sept 2019regulatory community update▲ Good
Farm-out talks have begun with interested parties. The first well location moved 450ft west, the final site survey is done (no oyster beds found), and permits are expected by December 2019. Newly found 1960s data raises confidence in deliverability. Official resources are unchanged.
6 Sept 2019security holder rights change● Neutral
Sun set up a sale facility for small shareholdings below A$500 (about 2,718 of 3,011 holders, roughly 3.86% of shares). Unless holders opt out by 24 October 2019, their shares will be sold at Sun's cost. This follows the earlier possible facility.
23 Aug 2019director officer appointment● Neutral
Patrick Glovac, co-founder of GTT Ventures, which ran the A$615,000 placement, joined the board as a non-executive director from 23 August 2019 on A$36,000 a year plus super.
23 Aug 2019admin correction● Neutral
Sun relodged a director's interest notice (Appendix 3Y) because the date of change was wrong: it should read 22 August 2019, not 3 January 2019. Administrative only.
14 Aug 2019capital raising announcement▲ GoodMajor
Sun has firm commitments to place 307.5m shares at A$0.002 to raise A$615,000, via GTT Ventures (6% fee plus 50m options). Funds cover lease rental and permitting. GTT's Patrick Glovac is to join the board. First well still Q1 2020, subject to funding or farm-out.
What it means for a shareholder
308m new shares at A$0.002 to raise about A$615,000. That's 24% dilution: every existing holder's slice gets 24% smaller. If you held A$1,000 of shares (500,000 at the issue price), your slice goes from 0.0523% to 0.0396% of the company. To keep it you'd need 160,817 more shares - about A$322 at the issue price.
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14 Aug 2019other● Neutral
ASX lifted the suspension of Sun's shares after the company released its capital raising announcement. Administrative notice only.
12 Aug 2019other● Neutral
Sun asked to extend the voluntary suspension by two days to 14 August, still awaiting completion of the capital raising to pay Bowsprit lease rentals.
6 Aug 2019investor presentation● Neutral
EGM presentation repeats the Bowsprit case: 100% interest after the Pinnacle buyout, appraisal well in Q1 2020 at US$3.6m, 2,000 bopd modelled, 670,000 bbl EUR. No new results; the slide shows market cap A$3.8m at A$0.004.
6 Aug 2019other● Neutral
Sun requested a voluntary suspension of its shares pending a capital raising from sophisticated investors. The raising is to fund lease rentals on Bowsprit, which it calls its main asset.
6 Aug 2019listing compliance notice▼ Bad
Replying to a second ASX cash query (June quarter cash A$63k, forecast outflow A$470k), Sun said it expects negative cash flow, is raising funds today, and that directors and major holders will keep supporting it. Production now most likely late 2020.
1 Aug 2019investor presentation● Neutral
August presentation repeats the Bowsprit case: 100% interest, appraisal well in Q1 2020 at US$3.6m, 2,000 bopd modelled, 670,000 bbl EUR. Shares are 956m at A$0.002 (market cap A$1.9m) and cash A$105k. It notes Hancock sold out in 2019, creating downward pressure on the share price.
29 July 2019asset acquisition disposition▲ GoodMajor
Sun agreed to buy Pinnacle's 50% of Bowsprit for US$250,000 (payable before drilling) plus a 5% gross royalty on the first US$12m of revenue, taking it to 100%. First well is now estimated for Q1 2020, subject to funding. The deal lapses if not completed by 1 March 2020.
28 June 2019capital raising announcement▼ BadMajor
Sun placed 75m shares at A$0.002 to raise A$150,000, with two free options per three shares (A$0.004, expiring 31 Dec 2020). Directors may take 45m more shares, converting A$70,000 of loans and adding A$20,000. The price is half the November 2018 placement price of A$0.004.
What it means for a shareholder
75.0m new shares at A$0.002 to raise about A$150,000. That's 7.8% dilution: every existing holder's slice gets 7.8% smaller. If you held A$1,000 of shares (500,000 at the issue price), your slice goes from 0.0567% to 0.0523% of the company. To keep it you'd need 42,562 more shares - about A$85 at the issue price.
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26 June 2019other● Neutral
ASX paused trading in Sun's shares pending a further announcement. The text gives no reason. A capital raising was announced two days later (inference: the pause likely related to it).
24 May 2019security holder rights change▼ Bad
Notice that 192m listed options (exercise price A$0.006) expire on 31 May 2019. No holder has exercised any, and the share price is A$0.002, below the exercise price. The options will lapse, bringing in no money.
15 Mar 2019half year report▼ Bad
Half-year accounts to 31 December 2018 show a net loss of A$611,552 (A$366,901 a year earlier). Director loans were partly settled in shares at A$0.004, and the SPP brought in A$82,000 after the period. Well planning and permitting have begun.
20 Feb 2019listing compliance notice▼ Bad
ASX queried the company's cash after it reported A$116k cash and A$589k estimated next-quarter outflows. Sun said it expects continuing negative cash flow, is preparing a drilling raise, and that directors and major shareholders will keep supporting it. Production is expected most likely in 2020.
28 Dec 2018capital raising announcement▼ BadMajor
The Share Purchase Plan closed with valid applications for 31,875,000 shares at A$0.004, raising A$127,500 before costs, well short of the A$500,000 the company was prepared to accept. The company described it as additional to a successful A$220,000 placement, with funds for well planning, permitting and working capital.
What it means for a shareholder
31.9m new shares at A$0.004 to raise about A$127,500. That's 3.8% dilution: every existing holder's slice gets 3.8% smaller. If you held A$1,000 of shares (250,000 at the issue price), your slice goes from 0.031% to 0.0299% of the company. To keep it you'd need 9,892 more shares - about A$40 at the issue price.
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