Past year: ▼ 84%(0.10c – 0.63c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
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.
20 Apr 2011quarterly activities report● Neutral
March quarter: cash fell to $1.415m from $2.668m after a $1.253m outflow and no raising. Next-quarter outflow forecast is $1.2m. Recaps the 30% earned in PEL 457/479, reserves upgrade and ATP 946 grant.
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.
23 Feb 2011other● Neutral
Registered office and principal place of business moved to Level 17, 500 Collins Street, Melbourne, with new phone and fax numbers. Administrative; follows the earlier move from West Perth.
23 Feb 2011flow test result▲ GoodMajor
Drill stem test of Annvale #1 over 675-688m showed good permeability, with a gas flare twice the size of Talma #1's. The company says this is a good indication the gas is producible and supports reserve certification.
21 Feb 2011well test result▲ GoodMajor
Talma #1 core testing shows average gas content of 5 m3 per tonne raw, 15 m3 per tonne dry ash free, with coals apparently fully saturated and up to 25% ethane. The company calls this very important for certifying reserves, and the results are comparable to Metgasco's Riflebird well.
18 Feb 2011drilling result▲ GoodMajor
Annvale #1 finished at 900m with 19.4m of gassy coal and 27 core samples taken for gas testing. The company says results to date have met expectations. This completes the second well of the Clarence Moreton program; wireline and permeability tests follow.
15 Feb 2011drilling progress report● Neutral
Annvale #1 coring is at 870m with 18m of gassy coal so far. Expected total depth is 900m.
14 Feb 2011drilling progress report● Neutral
Annvale #1 coring is at 797m, with 11m of gassy coal intersected so far.
10 Feb 2011drilling progress report● Neutral
The Annvale #1 re-drill reached the 650m coring point, and coring will start shortly.
7 Feb 2011drilling progress report● Neutral
The Annvale #1 re-drill reached 300m, with coring expected to begin at 650m.
3 Feb 2011director officer appointment● Neutral
Adrien Wing, a Melbourne-based CPA, replaces Lloyd Flint as company secretary. The company is moving its registered office to Melbourne.
31 Jan 2011drilling progress report▼ Bad
Annvale #1 cored to 695m with several gassy coal seams, but downhole problems force the well to be re-drilled. It will be re-spudded on the same pad within days. This is a second setback for the well.
28 Jan 2011quarterly activities report● Neutral
December quarter: Talma #1 drilled and the placement raised $1.4m. Cash ended at $2.69m after a $1.03m operating outflow. Next-quarter outflow is forecast at $750k. Carinda #1 is described as still to be drilled.
28 Jan 2011drilling result● NeutralMajor
Carinda #1 reached 354m. Logs showed 5.2m of coal across 14 seams, in line with expectations, though some seams are too shallow to hold gas. The company plans 6-8 wells across the Sandy Camp permits for about $1m, with a decision around mid-2011.
27 Jan 2011drilling progress report● Neutral
Annvale #1 coring has started at 569m and reached 631m, with coal expected shortly.
27 Jan 2011security holder rights change● Neutral
6,219,941 options at 20 cents expired on 31 December 2010 with no exercise. This was the 20c option series noted in the share structure, so no cash was raised.
21 Jan 2011investor presentation● Neutral
Radio interview with the managing director repeating known results: Talma #1 found a 240m gassy interval and gas flowed in a test. He expects three to four more core holes in 2011 and is considering a pilot. No new data.
17 Jan 2011drilling progress report● Neutral
Depco will mobilise on Friday 21 January to start drilling Annvale #1, giving a new start date after the flood delays.
17 Jan 2011drilling progress report● Neutral
Carinda #1 reached 258m. Coal seams were seen but coring was not possible because of unconsolidated claystones. Drilling continues to 350m, then wireline logs will measure the coal.
11 Jan 2011drilling progress report▼ Bad
Annvale #1 mobilisation by Depco is delayed again by Queensland flooding, which limits access to equipment and may affect the site. No new spud date was given, so the 7 January re-spud slips further.
10 Jan 2011drilling spud● Neutral
Carinda #1 spudded on 9 January in the Sandy Camp Project (100% Red Sky), after months of flood delays. Target depth is 350m, coring Cretaceous coals in the Coonamble Embayment.
