21 Nov 2011investor presentation● Neutral
Company says its 114 PJ of 3P reserves rank fifth among non-major eastern Australian gas companies, behind Metgasco's 2,542 PJ. Repeats the Talma pilot plan awaiting approval. No new data.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
18 Nov 2011security holder rights change● Neutral
Notice that 150m restricted shares leave escrow on 5 December 2011, which adds to freely tradable shares. Administrative; the text does not say who holds them.
18 Nov 2011admin correction● Neutral
Revised escrow notice corrects the ASX code from RER to ROG. Still 150m shares released on 5 December 2011. Administrative only.
3 Nov 2011drilling scheduled● Neutral
Approval application (110-page environmental review) for the Talma pilot has been lodged, with approval expected within weeks. Plan is to drill out the core hole and expose 480-570m, then flare and produce. This pushes the earlier Q4 timeline into further waiting.
30 Sept 2011admin correction● Neutral
Revised notice replaces the 27 September issue figures: 11,538,462 shares at 0.65c instead of 12.5m at 0.6c. Administrative correction only.
27 Sept 2011debt financing● NeutralMajor
Red Sky signs the proposed $3m equity facility with YA Global, drawable over 3 years at up to $100k per 10 trading days. Shares price at the lowest 10-day VWAP, with a 5% commission. Company says current cash funds the Talma pilot.
27 Sept 2011capital raising announcement● Neutral
Notice for issue of 12.5m shares at 0.6c on 27 September 2011, without a prospectus. Admin notice; the issue is not explained in the text (inference: related to the YA Global facility).
What it means for a shareholder
12.5m new shares at A$0.006 to raise about A$75,000. That's 0.906% dilution: every existing holder's slice gets 0.906% smaller. If you held A$1,000 of shares (166,667 at the issue price), your slice goes from 0.0122% to 0.0121% of the company. To keep it you'd need 1,525 more shares - about A$9 at the issue price.
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13 Sept 2011half year report▼ Bad
Half-year report to 30 June 2011 shows a net loss of $5.12m (prior period $3.42m). It restates known events: Kangaroo Creek discovery, permit relinquishments and the revised farm-in. The cover carries leftover Kilgore Oil & Gas headings, apparently template errors.
22 Aug 2011investor presentation● Neutral
Managing Director's presentation repeats the Clarence Moreton reserves, Kangaroo Creek discovery and revised farm-in. Adds 1.366bn shares, market value of about $11m at 0.8c, and a 74% share price fall since Nov 2010 versus 37% for peers. No new results.
11 Aug 2011resource reserve update● Neutral
Presentation repeats the August Kangaroo Creek study: 81.8m gross interval, 28.9m net pay, 28 Mscfd flow, gas-in-place of 3.0-6.5 PJ per sq km if fully gas-charged. Pilot well planned for Q4 2011, pending approvals. No reserve booked.
11 Aug 2011resource reserve update● NeutralMajor
Study on the Kangaroo Creek sandstone finds an 83m gross column at Talma #1 and a 28 Mscfd flow from a 10m interval. Permeability is low, and seal and structure are unconfirmed. Company says pilot drilling is needed to size the resource; no reserve booked.
10 Aug 2011farm in farm out agreement▲ GoodMajor
Binding term sheet with Clarence Moreton Resources replaces the lapsed option. Red Sky can rise from 30% to 70% in PEL 457/479 in four 10% stages, one well each, with the Talma pilot earning 10% in PEL 457. A $3m equity facility over 3 years is proposed, subject to due diligence.
2 Aug 2011security holder rights change● Neutral
Notice that listed 2c options (ROGOA) must be exercised by 5pm 2 September 2011 or lapse. The shares last traded at 0.8c, below the 2c exercise price. Administrative.
28 June 2011material agreement termination● Neutral
Adelaide Energy confirms the ATP 904P farm-in with Red Sky is terminated in return for 15m Red Sky shares with a 12-month escrow. Adelaide now holds 100% of the permit. Counterparty's view of the same deal announced by Red Sky.
28 June 2011asset acquisition disposition● NeutralMajor
Red Sky narrows to two areas, Clarence Moreton and ATP 946. It ends the ATP 904P farm-in for 15m escrowed shares to Adelaide Energy, relinquishes the Sandy Camp and Tibooburra permits, and cuts its ATP 840 unconventional interest to 25%. Spending commitments are substantially reduced.
14 June 2011farm in farm out agreement▼ BadMajor
Red Sky lets its option lapse to earn a further 40% in PEL 457 and 479 for $3m per permit, keeping its 30%. Talks continue on a revised farm-in. This resolves the earlier open decision on spending $3m per permit.
14 June 2011farm in farm out agreement● Neutral
Duplicate of the same-day announcement: Red Sky lets the option to earn a further 40% in PEL 457 and 479 lapse, keeps 30%, and negotiates a revised farm-in. Re-release with no new content.
7 June 2011other● Neutral
Share registry moves to Link Market Services from 20 June 2011. Administrative only.
9 May 2011capital raising announcement● NeutralMajor
Placement raises $1.44m through 120m shares at 1.2c, with a free 1-for-2 option (60m listed options at 2c, September). Funds mainly go to the Talma pilot well. It adds to the share count of about 1.23bn.
What it means for a shareholder
120m new shares at A$0.012 to raise about A$1.4m. That's 8.9% dilution: every existing holder's slice gets 8.9% smaller. If you held A$1,000 of shares (83,333 at the issue price), your slice goes from 0.00677% to 0.00617% of the company. To keep it you'd need 8,120 more shares - about A$97 at the issue price.
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3 May 2011investor presentation● Neutral
Presentation repeats known Clarence Moreton reserves and the Kangaroo Creek pilot plan, and adds a 27MW Summerland Way power project with a company-estimated $30m NPV and a 2013 target go-ahead. Cash $1.4m at 31 March; market value $21m at 1.7c.
28 Apr 2011drilling scheduled▲ GoodMajor
Lab work estimates 83m gross pay in the Kangaroo Creek sandstones (480-563m) at Talma. A single unstimulated pilot well beside Talma #1 is planned for June/July 2011, operating Aug/Sep, running over a year; approvals have begun and landowner consents are in place.
11 Apr 2011drilling result▲ GoodMajor
Talma #1 flowed gas to surface from the Kangaroo Creek sandstones above the Walloon coals, suggesting a possible significant extra gas resource, shallow (under 600m) and possibly needing no fracturing. Testing continues, and a small local power station is being studied.
30 Mar 2011other● Neutral
Administrative notice that 40m shares are issued on about 24 March 2011 to Resolve Geo under the ATP 946 farm-in announced 9 March. This completes the share issue flagged earlier; no new information.
29 Mar 2011annual report● Neutral
Annual report for 2010. The chairman calls it a year of portfolio management after the dry Surat Basin coals in ATP 840 and the Pedirka withdrawal, with the Clarence Moreton and ATP 946 farm-ins seen as the key to value. Auditor is now listed as RSM Bird Cameron.
22 Mar 2011investor presentation● Neutral
Restates the ATP 946 farm-in (two core holes within 12 months) and quotes neighbour Sentry Petroleum's report calling its adjacent Winton coals a potential world-class gas deposit. This is a third-party view of adjacent acreage, not a Red Sky result.
21 Mar 2011resource reserve update▲ GoodMajor
MHA certified maiden 2P reserves of 17 PJ in PEL 479 and a 210% rise in 3P reserves, on a 100% basis. PEL 479 3P was 159 PJ, PEL 457 3P 221 PJ and PEL 457 2C contingent resources 629 PJ. The company said it would start planning production pilots.
15 Mar 2011farm in farm out completion▲ GoodMajor
Completing Annvale #1 and Talma #1 earns Red Sky 30% in each of PEL 479 and 457. It can lift this to 70% by spending $3m per permit, a decision that will depend on the coming reserves upgrade.
9 Mar 2011farm in farm out agreement▲ GoodMajor
ATP 946 (Yaraka, central Queensland) has been granted, so the Resolve Geo farm-in proceeds. Two core holes (about $1.6m) within 12 months earn 10%; a further $5m earns 80% more. 40m shares are issued to Resolve Geo now and 40m more if the option is exercised. Company cites a possible 10 TCF resource if coal thickness and gas content meet expectations.
2 Mar 2011resource reserve update▲ Good
Drilling data has gone to MHA for an updated reserves statement due in about three weeks. The company expects some contingent resources to convert to reserves, but no new volumes were released.
24 Feb 2011well test result▲ Good
Annvale #1 gas contents are similar to Talma #1 and the nearby Riflebird E06 well, and the company says this verifies a substantive in-place gas resource in its permits. High diffusion allowed the results without waiting the usual six-week desorption period.