26 Mar 2010drilling scheduled▼ Bad
Flooding in northern NSW has delayed the PEL 467 well. The original site is abandoned for a new location with better access, and the spud date moves to late April.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
22 Mar 2010admin correction● Neutral
Central corrects a date error (12 December should read 12 March 2010) in its 18 March statement on Red Sky's farm-in. The substance is unchanged.
18 Mar 2010joint venture update▼ Bad
Central says it maintains its 24 December position and is assessing its options, with legal advice, over Red Sky's 12 March farm-in announcement. The Central dispute over Red Sky's farm-in reading remains unresolved.
17 Mar 2010farm in farm out agreement▲ GoodMajor
Red Sky signed a term sheet to earn up to 100% of coal seam gas rights in ATP 946 (about 7,650km2, central Queensland). Two core holes (about $1.5m) earn 10%; a further $5m earns 80%. 40m shares are issuable on grant, 40m more on exercise. Conditional on grant, native title and approvals.
15 Mar 2010drilling scheduled● Neutral
Central started road works ahead of drilling Ooraminna 2, an Amadeus Basin appraisal well in EP 82 where Red Sky holds 10%. Central says the prospect may hold up to 2 tcf at a high estimate of undiscovered gas. Central's view only.
12 Mar 2010farm in farm out agreement● NeutralMajor
Red Sky said it would meet remaining cash calls for Pedirka Basin permits EP 93 and 107 under its Broadacre farm-in with Central. It elected not to earn its 10% interest in a number of permits outside the Pedirka Basin.
11 Mar 2010material agreement● NeutralMajor
Red Sky signed a binding term sheet with Enhanced Biogenic Methane to fund a roughly $600,000 single-well demonstration of gas-boosting technology. EBM is associated with Managing Director Rohan Gillespie and would get a 25% farm-in interest plus royalty where used. Subject to shareholder approval if required.
11 Mar 2010other● Neutral
Transol (ASX:TNC), which holds 20% of Enhanced Biogenic Methane with a right to acquire up to 100%, re-releases Red Sky's term sheet announcement. No new substance beyond Red Sky's own announcement.
9 Mar 2010regulatory community update▲ Good
PELA 124 and 125 in NSW, acquired with Surat Resources, are granted at 100%. This resolves the open work program negotiation: year 1 geological studies, year 2 two stratigraphic wells. Floods push back the PEL 467 spud.
2 Mar 2010drilling scheduled● Neutral
Red Sky is preparing its next well in PEL 467 (100%, northern NSW), a roughly $700,000 well. Expected net coal is 4-5m, and nearby gassy water bores are cited as an indicator. Cash is about $5.3m after Romona #1 and Central cash calls.
23 Feb 2010drilling result▼ BadMajor
Romona #1 reached 640m and found only 1.6m of coal over 8 seams, including one gassy seam under 1m thick. Red Sky says this is less than expected and not commercial. The well earns a 50% interest in ATP 840, but Talwood #1 is deferred pending analysis.
22 Feb 2010admin correction● Neutral
Administrative notice: the share register moves from Computershare to Advanced Share Registry Services from 1 March 2010. No impact on holdings.
5 Feb 2010drilling spud● Neutral
Central spudded CBM107-001, the third Pedirka coal seam gas well, on 4 February. Red Sky holds 10%. It tests coal along strike from the CBM93-004 discovery, with planned total depth about 1,214m. Central's announcement.
2 Feb 2010drilling spud● Neutral
Romona #1, Red Sky's first coal seam gas well, in ATP 840 has spudded with TDC Drilling and reached 66m. Target completion is end February. Completing it earns the 50% interest in ATP 840.
29 Jan 2010quarterly activities report● Neutral
December quarter report: the $4.5m placement and the Norwest/Surat Resources acquisitions (160m shares) were completed, and a drilling rig was contracted for the first Surat well. Cash rose from about $4.0m to about $7.5m over the quarter.
28 Jan 2010drilling result▼ Bad
Central reports Pedirka well CBM93-003, 10% Red Sky, reached 896m and will be plugged and abandoned. It found only thin coals of 0.4m and 1.2m in core, with residual tar noted. The next well, CBM107-001, is being mobilised.
27 Jan 2010drilling scheduled▲ GoodMajor
Romona #1, Red Sky's first coal seam gas well in ATP 840, will spud on 29 January. Red Sky will then drill Talwood #1 in ATP 904, which earns a one-third interest. A third well is expected in NSW.
18 Jan 2010director officer appointment▲ Good
Murray Durham joins the Red Sky board as Executive Director with immediate effect. He was most recently Oil and Gas Marketing Director at Apache Energy and earlier ran BHP Billiton's coal seam gas business globally.
15 Jan 2010regulatory community update▲ Good
Central, as operator, formally notified the NT government of a coal discovery in EP 93, based on 144m of coal in CBM93-004. Red Sky holds 10% of the joint venture. Central notes its views may not reflect those of its partners.
11 Jan 2010drilling spud● Neutral
Central spudded CBM93-003, the second of five Pedirka coal seam gas wells, on 9 January. Red Sky holds 10% through its subsidiary. Net coal of roughly 20-30m is expected. This is Central's announcement.
6 Jan 2010drilling result▲ GoodMajor
Central reports Pedirka well CBM93-004, in which Red Sky holds 10%, reached 978m with about 144m of coal and fair to excellent gas readings. Thicker than expected, it supports widespread coal. Preliminary results; this is Central's announcement.
29 Dec 2009joint venture update▼ Bad
Central Petroleum publicly disputes Red Sky's 17 December description of its farm-in. It says Red Sky cannot walk away, and may only opt out of costs for the second and third drilling targets, not permit by permit. Central is still investigating its legal position, so the 'resolved' claim is contested.
18 Dec 2009regulatory community update▲ GoodMajor
PEL 123 in NSW, acquired with Surat Resources, has been granted at 100%. The two-year program is geological studies, then one core hole to about 500m. Work programs for PELA 124 and 125 are still being negotiated.
18 Dec 2009contract award▲ Good
Red Sky contracted TDC Drilling for Romona #1, its first coal seam gas well, in ATP 840, expected to spud late January and finish by end February. Completing it meets the initial farm-in obligation and earns a 50% interest in ATP 840.
17 Dec 2009joint venture update▲ GoodMajor
Red Sky says it has reached further agreement with PXA, resolving the dispute and entitling it to a 10% interest across Central's permits. It says participation is optional permit by permit. The first Pedirka coal seam gas well spudded in early December.
30 Nov 2009capital raising announcement▲ GoodMajor
Red Sky raised $4.5m through a placement of 125m shares at $0.036, led by Melbourne Capital, after shareholders approved the Norwest and Surat Resources deals on 27 November. Issued shares reach about 971.5m. Funds go to exploration and working capital.
What it means for a shareholder
125m new shares at A$0.036 to raise about A$4.5m. That's 20% dilution: every existing holder's slice gets 20% smaller. If you held A$1,000 of shares (27,778 at the issue price), your slice goes from 0.00556% to 0.00444% of the company. To keep it you'd need 6,944 more shares - about A$250 at the issue price.
Create a free account to see this worked out for your own holding.
25 Nov 2009joint venture update▼ Bad
Central Petroleum has referred its dispute with PXA over Red Sky's 10% farm-in to formal arbitration after talks failed. Central maintains the assignment was valid. The Pedirka drilling program proceeds regardless, with the first well due early December. Dispute still unresolved.
24 Nov 2009regulatory community update● Neutral
Red Sky clarifies its presentation's 'trillion tonnes of coal' claim for the Central permits. The source report gives a conceptual exploration target of 1.1-1.4 trillion tonnes above 1,000m, with insufficient exploration to define a resource. This qualifies the earlier presentation.
23 Nov 2009investor presentation● Neutral
20:20 Investor Series presentation. Says the ATP 840 hole now expects a January 2010 spud with landowner consents secured, and a Pedirka five-hole program runs Dec 2009 to April 2010. Cash is $3.5m. Largely restates known deals.
30 Oct 2009quarterly activities report● Neutral
September quarter report: Red Sky repositioned as a coal seam gas explorer, completing the Cydonia purchase and the $4m raise. First ATP 840 core hole is now proposed before March 2010, possibly this calendar year. Mostly restates known events.