Past year: ▼ 84%(0.10c – 0.63c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
20 Feb 2013regulatory community update▲ Good
Dubbo City Council granted updated development approval for an expanded 2.5MW SOLEIR solar project on a five-hectare part of the 24.9ha leased site. First phase still targeted for operation by 30 June 2013.
13 Feb 2013other● Neutral
Update on the SOLEIR Dubbo solar project: feasibility study due mid-March 2013, target cost $2.15/Watt (about $4.3m for 2MW), first phase to be operating by 30 June 2013. Progress report; no new approvals or funding.
24 Jan 2013quarterly activities report● Neutral
December quarter: received the first $700,000 ERM milestone payment; operating outflow $342k, net cash up $211k. Solar design at Dubbo progressing. ERM preparing at least four wells in PEL 479 and 457, timing undecided. ATP 946 farm-in terminated after quarter end.
17 Jan 2013capital raising announcement● Neutral
Notice for issue of 40m shares on 17 January 2013 at 0.2c, about $80k by calculation. Likely linked to the ATP 946 settlement shares to Resolve Geo (inference); the notice does not say.
What it means for a shareholder
40.0m new shares at A$0.002 to raise about A$80,000. That's 2.3% dilution: every existing holder's slice gets 2.3% smaller. If you held A$1,000 of shares (500,000 at the issue price), your slice goes from 0.0297% to 0.0291% of the company. To keep it you'd need 11,898 more shares - about A$24 at the issue price.
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17 Jan 2013material agreement termination● NeutralMajor
Red Sky exits the ATP 946 (Yaraka) farm-in with Resolve Geo by mutual agreement, ending an obligation to drill two core holes costing about $2m. Settlement is shares plus a small cash payment. Management cites higher compliance costs and permitting uncertainty.
18 Dec 2012capital raising announcement● Neutral
Notice for issue of 60m shares on 18 December 2012. The price is garbled in the notice (0.00305 cents / $0.305); purpose not stated. Administrative.
5 Dec 2012farm in farm out completion▲ Good
First ERM milestone met: ERM Gas has been assigned a registered 10% in each of PEL 479 and 457, triggering a $700,000 payment to Red Sky. Red Sky keeps 20% in both permits, as set out in the September deal.
28 Nov 2012asset acquisition disposition● NeutralMajor
Red Sky buys SOLEIR, a solar developer with a 2MW Dubbo project, for $249,000 cash, aiming to build the first phase by June 2013. SOLEIR is 58% owned by EIR, associated with MD Rohan Gillespie. His contract was renewed three years. A move beyond gas.
24 Oct 2012quarterly activities report▲ Good
September quarter: ERM deal closed 13 September and the 150m share placement raised $1.05m, lifting cash to $900k after a $423k operating outflow. A further $2.7m in ERM milestone payments is expected over 12 months. Company is investigating other energy opportunities.
26 Sept 2012other● Neutral
Settled the legal dispute with TDC Drilling over the failed Annvale 1 well. The earlier stayed judgement of about $205,000 is set aside and Red Sky pays $165,000 including GST, ending all claims between them and avoiding trial costs.
20 Sept 2012capital raising announcement▲ Good
Notice for issue of the 150m shares to ERM at 0.7c on 21 September 2012, about $1.05m (calculated from the stated price and number). Completes the ERM placement agreed in the deal; first cash from it for the thinly funded company.
What it means for a shareholder
150m new shares at A$0.007 to raise about A$1.1m. That's 9.5% dilution: every existing holder's slice gets 9.5% smaller. If you held A$1,000 of shares (142,857 at the issue price), your slice goes from 0.00998% to 0.00904% of the company. To keep it you'd need 14,975 more shares - about A$105 at the issue price.
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13 Sept 2012farm in farm out completion▲ GoodMajor
The ERM Gas deal reached financial close on 13 September 2012. ERM funds 6-9 wells, can earn up to 80% PEL 478 and 60% PEL 479/457, and pays Red Sky up to $2.7m on milestones. 150m shares go to ERM at 0.7c. Resolves the repeated delays.
13 Sept 2012farm in farm out completion▲ Good
ERM Power's own announcement that the farm-in completed. It earns minimum 50% in PEL 457 and 479 and 65% in PEL 478, with options to reach 100%, and subscribes for 150m Red Sky shares at 0.7c (9.5%). Confirms Red Sky's announcement.
13 Sept 2012half year report● Neutral
Half-year report to 30 June 2012: net loss $572,033 (versus $5.12m loss a year earlier). Repeats the Talma pilot approval of 1 April 2012, rig still being sought, and the ERM deal as a subsequent event. No new operating results.
7 Sept 2012farm in farm out completion● Neutral
Red Sky says the ERM Gas transaction should reach financial close early next week, with documentation near final and conditions substantially met. This is a one-week slip from the previous update. Not yet completed.
31 Aug 2012director officer appointment● Neutral
Non-executive director Murray Durham resigned on 31 August 2012, leaving three directors. Red Sky also says the ERM Gas transaction is on track to close the following week, with documents near final and conditions substantially met.
24 July 2012quarterly activities report● Neutral
June quarter: cash fell to $273k after a $312k operating outflow. Talma pilot was approved on 1 April but a rig is still being sourced. The company says weak trading volumes hurt the YA Global facility and the ERM placement and payments should avoid near-term raising; vote due 9 August.
4 July 2012farm in farm out agreement▲ GoodMajor
Term sheet with ERM Gas: it funds six to nine wells across PEL 478, 479 and 457 and pays Red Sky up to $2.7m on milestones. Red Sky issues 150m shares (about 9.5%) and drops to 20% in PEL 479 and 457, with a $10m buy-out option. Needs shareholder approval and due diligence. Replaces the Clarence Moreton Resources farm-in.
4 July 2012farm in farm out agreement▲ Good
ERM Power's own announcement of the same deal, with the buyer's view: it earns at least 50% in PEL 457 and 479 and 65% in PEL 478, with payments of up to $7.45m to the parties. It would also take 150m Red Sky shares (9.5%). Conditional on shareholder approvals.
30 May 2012investor presentation● Neutral
Presentation by the managing director: about 1,430m shares, price 0.6c, market value $8.6m, cash $0.4m (April). Outlines a proposed five-well program across Clarence Moreton to lift interests to 40-50% in the permits. Largely repeats known facts; no new results.
11 May 2012capital raising announcement● Neutral
Notice for issue of 857,143 shares at 0.7c on 11 May 2012 without a prospectus, about $6k. Administrative; purpose not stated.
What it means for a shareholder
857,143 new shares at A$0.007 to raise about A$6,000. That's 0.0599% dilution: every existing holder's slice gets 0.0599% smaller. If you held A$1,000 of shares (142,857 at the issue price), your slice goes from 0.00999% to 0.00998% of the company. To keep it you'd need 86 more shares - about A$1 at the issue price.
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1 May 2012capital raising announcement● Neutral
Notice for issue of 8,333,334 shares at 0.6c on 1 May 2012 without a prospectus, about $50k. Administrative; purpose not stated.
What it means for a shareholder
8.3m new shares at A$0.006 to raise about A$50,000. That's 0.583% dilution: every existing holder's slice gets 0.583% smaller. If you held A$1,000 of shares (166,667 at the issue price), your slice goes from 0.0117% to 0.0117% of the company. To keep it you'd need 977 more shares - about A$6 at the issue price.
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1 May 2012regulatory community update▲ GoodMajor
The NSW regulator has approved the Talma pilot well application, after about six months of review. The next step is to contract a rig and drill, exposing 480-570m of the Kangaroo Creek sandstone, then flare and produce. No rig or timing yet.
23 Apr 2012quarterly activities report▼ Bad
March quarter: net outflow $318k, financing inflow $192k, cash down to $487k. Red Sky consolidated ATP 840 into an 18.75% interest across all resources to help attract a major farm-in partner. Talma pilot approval still expected in April; $251k of the YA Global facility used.
4 Apr 2012capital raising announcement● Neutral
Notice for issue of 7,142,858 shares at 0.7c on 4 April 2012 without a prospectus, about $50k. Administrative; purpose not stated.
What it means for a shareholder
7.1m new shares at A$0.007 to raise about A$50,000. That's 0.502% dilution: every existing holder's slice gets 0.502% smaller. If you held A$1,000 of shares (142,857 at the issue price), your slice goes from 0.0101% to 0.01% of the company. To keep it you'd need 721 more shares - about A$5 at the issue price.
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22 Mar 2012capital raising announcement● Neutral
Notice for issue of 4,285,715 shares at 0.7c on 23 March 2012 without a prospectus, about $30k. Administrative; purpose not stated.
What it means for a shareholder
4.3m new shares at A$0.007 to raise about A$30,000. That's 0.303% dilution: every existing holder's slice gets 0.303% smaller. If you held A$1,000 of shares (142,857 at the issue price), your slice goes from 0.0101% to 0.0101% of the company. To keep it you'd need 434 more shares - about A$3 at the issue price.
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19 Mar 2012regulatory community update● Neutral
Red Sky says it has supplied all the further information the NSW regulator requested on the Talma pilot. A determination is now expected in April, as the February update had flagged.
15 Mar 2012admin correction● Neutral
Adds a competent person statement to the 2011 annual report: the Clarence Moreton reserves were certified by Tim Hower of MHA Petroleum Consultants. No new data or change to the reserves.
9 Mar 2012annual report● Neutral
Annual report for 2011. The chairman calls it a frustrating year: the two-well Clarence Moreton program and the Kangaroo Creek discovery succeeded but the share price did not reflect it. Talma pilot approval is still being sought. Extract is truncated, so no financials shown.
7 Mar 2012capital raising announcement● Neutral
Notice for issue of 7,142,858 shares at 0.7c on 8 March 2012 without a prospectus, about $50k. Administrative; purpose not stated.
What it means for a shareholder
7.1m new shares at A$0.007 to raise about A$50,000. That's 0.506% dilution: every existing holder's slice gets 0.506% smaller. If you held A$1,000 of shares (142,857 at the issue price), your slice goes from 0.0102% to 0.0101% of the company. To keep it you'd need 727 more shares - about A$5 at the issue price.
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