30 Aug 2010drilling progress report▲ Good
Landowner consent is now secured for both Clarence Moreton wells, and regulatory approval is received for the first, with the second expected next week. First well still on track to spud in late September.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
23 Aug 2010drilling progress report● Neutral
Clarence Moreton drilling prep advances: landowner consent for the first of two wells, rig available in September, first spud expected late September. Red Sky says remaining cash funds both wells; Central settlement had minimal cash impact. Darling Basin PELs 447-449 relinquished as not prospective.
30 July 2010material agreement termination● NeutralMajor
Red Sky confirms withdrawal from all permits in its joint venture with Central Petroleum, ending the dispute and its Pedirka and NT interests. The announcement gives no terms; refers to Central's release.
30 July 2010quarterly activities report● Neutral
June quarter report: focus moves to ATP 946, with native title resolved and grant awaited, and farm-in partners are sought for PEL 467. Cash was $3.03m at 30 June (from $4.15m after about $1.1m outflow). Clarence Moreton farm-in noted as subsequent event.
30 July 2010material agreement termination● NeutralMajor
Central says it settled the farm-in dispute: Red Sky withdraws from all Central-farmed permits and returns its interests for an undisclosed sum, ending the Farmout Agreement. Resolves the dispute and default notices; the settlement amount is not disclosed.
27 July 2010drilling progress report● Neutral
Ooraminna 2 (Red Sky 10%) reached about 1,666m and logs are being run; an acid squeeze of the Pioneer Sandstone may raise gas flow. Johnstone West 1 is expected to spud around 14 August. No new result yet.
22 July 2010farm in farm out agreement▲ GoodMajor
Red Sky farms into four Clarence Moreton Basin permits in NSW (PEL 457, 478, 479, PSPA 37). One well earns 30% each; a further $3m earns another 40%, with an option to buy the rest. Two core holes are planned for late 2010.
20 July 2010drilling progress report● Neutral
Ooraminna 2 (Red Sky 10%) continues to flare gas but no new zones have been found. Drilling is delayed by blocked downhole equipment; an acid wash of the Pioneer Sandstone is being considered once the well reaches about 1,777m.
13 July 2010well test result▲ Good
Ooraminna 2 (Red Sky 10%) flow-tested gas from the Pioneer Sandstone at roughly 190 Mcfd, versus 12 Mcfd in the 1963 Ooraminna-1 well; no water. A small rate; Central plans to keep drilling to 1,770m and may stimulate the zone.
7 July 2010drilling progress report● Neutral
Central's Ooraminna 2 (EP 82, Red Sky 10%) has cemented casing and is preparing to drill the main Pioneer Sandstone target, expected about 7 July. Slower than planned. Central's 2 tcf high-estimate figure is an undiscovered prospect, not a result.
5 July 2010debt default or forbearance▼ BadMajor
Central says it has sent default notices to Red Sky's NT subsidiary for about $1.9m of unpaid cash calls and about $3.8m of farm-out costs (including the $1.9m). This follows the dispute over Red Sky's March farm-in election.
5 July 2010joint venture update● Neutral
Red Sky says the Central default notices are the contractual route for giving up its right to earn interests in non-Pedirka permits, and so removes any need to pay the $3.8m. Company's interpretation of the agreements; Central had described it as money owed.
2 July 2010drilling scheduled▼ BadMajor
Carinda #1 in PEL 467, due to spud late June, is now being revised; PEL 467 and surrounds (Sandy Camp, up to 11tcf gas-in-place) are to be farmed out. ATP 946 is not yet granted, with two core holes planned for Q4 2010. Focus shifts to ATP 946.
1 June 2010investor presentation● Neutral
Singapore LNG conference pitch, repeating the known story: Red Sky as a partner for CSG-to-LNG, targeting at least 50tcf gas-in-place, market cap $17m. Seeks partners to fund work across its portfolio. Nothing new announced.
31 May 2010drilling progress report● Neutral
Central's CBM93-002 in EP 93 (Red Sky 10%) hit 3m of Permian coal at 510m and coring is starting. Central also notified a coal discovery in CBM107-002 (65m total coal, TD 604m); Ooraminna 2 spud slipped to 4 June. No gas results yet.
25 May 2010agm notice● Neutral
All eight AGM resolutions passed, including director re-elections, remuneration report, auditor appointment and share placements ratification and approval. Against votes were small, up to 1.55m shares on the remuneration report.
25 May 2010investor presentation● Neutral
AGM presentation pitching Red Sky as a partner for LNG players, with market cap of $17m and targets of at least 50tcf gas-in-place. Repeats known plans for PEL 467 and ATP 946; ATP 946 spud depends on resolving two native title claims.
25 May 2010director officer appointment● Neutral
Non-executive director Roland Berzins resigned at the close of the AGM, with 6m shares held indirectly through RH and CM Berzins. Company secretary David Ballantyne also resigned and Lloyd Flint was appointed in his place.
18 May 2010farm in farm out agreement▲ GoodMajor
Red Sky will manage the farm-out of all ATP 840 rights, seeking a partner to fund a well and 100km seismic (est. $4.0-5.5m) for 50%. Red Sky would earn 20% of Clark Oil's conventional rights and keep its 50% non-conventional interest. A sizeable oil prospect is also identified.
17 May 2010drilling result● Neutral
Central's CBM107-002 in EP 107 (Red Sky 10%) reached 604m TD with 65m cumulative coal, including 16m and 20m seams. Thinner than the 130m in CBM107-001. Gas content tests are not done, and an independent review is pending.
11 May 2010drilling progress report● Neutral
Carinda #1 in PEL 467 is on schedule for a late June spud. Environmental review is being amended, council consent is being sought, and rig modifications are underway. This follows the earlier delays from floods.
4 May 2010drilling progress report● Neutral
Central's CBM107-002 in EP 107 (Red Sky 10%) hit coal at 237.6m, about 32m shallower than forecast. Central calls it encouraging; no gas content result yet.
3 May 2010drilling spud● Neutral
Central spudded CBM107-002 on 30 April in EP 107, where Red Sky holds 10%. Central says the earlier CBM107-001 hit 130m of coal, well above forecast. Central's view only; no gas result yet.
30 Apr 2010annual report● Neutral
Full 2009 annual report, dated chairman's letter 16 April 2010, restating the shift to coal seam gas, $9m raised before costs and the Cydonia, Norwest and Surat Resources acquisitions. Mostly repeats known events; text is truncated.
30 Apr 2010quarterly activities report● Neutral
March quarter report: Romona #1 earned 50% of ATP 840 but coal was too thin; cash fell from $7.57m to $4.15m after $3.4m outflow. PEL 467 well delayed by floods; PELA 124/125 granted. Largely restates known events.
20 Apr 2010investor presentation● Neutral
Conference presentation repeating known plans: one PEL 467 core hole in June (potential 7tcf gas-in-place) and ATP 946 (estimated 10.4tcf in place, 6.2tcf recoverable, from the company's own assumptions). Nothing new announced.
19 Apr 2010resource reserve update● Neutral
After Romona #1's thin coal, a technical adviser's review identifies potential for basin-centred gas in ATP 840, compared to the US Piceance Basin. No volume is given. Red Sky will consider work options and a farm-in; a further 50% needs another well and 100km of seismic.
16 Apr 2010drilling scheduled▼ Bad
The PEL 467 well is delayed again, to late June, because of rig modifications, site access and permitting after the floods. The earlier late April target is missed.
31 Mar 2010annual report● Neutral
Annual report for 2009 describes the company's repositioning as a coal seam gas explorer, with $9m raised during the year before costs and the Cydonia, Norwest and Surat Resources acquisitions. Mostly restates known events; text is truncated.
31 Mar 2010investor presentation● Neutral
Conference presentation pitching Red Sky as an LNG-linked coal seam gas explorer, with a claimed 50tcf potential gas-in-place target portfolio and market cap of about $20m. Repeats known facts, including 971m shares and PEL 467 and ATP 946 drilling plans.