30 Mar 2017other● Neutral
Appendix 4G corporate governance checklist lodged with the annual report. Administrative filing with no new business information.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
30 Mar 2017annual report▼ Bad
2016 annual report: net loss $4,954,855 (2015: $2,204,228). Shareholders approved the convertible note and 50-to-1 consolidation on 9 March 2017. Convertible note now $1.15m; rights issue $500k still to be set. Board is Le Page (chair), Carey, Wing.
27 Feb 2017security holder rights change● NeutralMajor
Notice of the 50-to-1 share consolidation, subject to the 9 March 2017 shareholder meeting: 6,161,396,921 shares become an estimated 123,227,938. Effective 13 March, with new holdings issued 21 March. Part of the RM Corporate recapitalisation.
9 Feb 2017security holder rights change● Neutral
100,000,000 unlisted options (exercisable at 0.9c) expired on 20 December 2016. Capital structure is now 6,161,396,921 shares and no options.
1 Feb 2017director officer appointment● Neutral
Non-executive director Russell Krause resigned, citing other work commitments. This leaves three directors: Le Page, Carey and Wing, after the December board overhaul.
22 Dec 2016production update▼ BadMajor
Gold Nugget has not produced consistent gas as hoped, owing to higher pressure and water production; directors await a formal production update. Cache has been written down because of ongoing running and environmental costs. Reverses the earlier stabilisation message.
15 Dec 2016capital raising announcement● NeutralMajor
Binding deal with RM Corporate Finance to underwrite a $1m convertible note (8%, converting at the lower of 0.5c or 80% of VWAP) and a $500k rights issue, plus a 50-to-1 share consolidation. Smith and Reinhart leave the board; Le Page and Wing join. Carey becomes non-executive.
28 Oct 2016quarterly activities report▼ BadMajor
September quarter: Gold Nugget flows 300–500 mcf a day, below the earlier 500–1,000 expectation. 336.3m shares issued for the 70% interest. Cache, now judged unlikely to be developed at current oil prices, is to be marketed or funded out. Cash was A$25,000.
24 Oct 2016production update● Neutral
Gold Nugget produced a steady 300–500 mcf a day in September, below the earlier 500+ days and the 500–1,000 expected. Management is holding output conservatively for two months; it says higher gas prices offset the lower volumes. (Dated 2015 in the text, apparently an error.)
13 Sept 2016half year report▼ Bad
Half-year to 30 June 2016: net loss $624,439 (prior-year half $755,099). Repeats the Gold Nugget completion, A$350k note, compressor and third-acquisition talks. The document carries stray headers from an older Kilgore Oil & Gas report.
26 July 2016admin correction● Neutral
Amended re-lodgement of the 25 July Gold Nugget update. Same content: five days with the compressor, all days above 500 mcf a day, two above 600, about US$1,500 a day at current gas prices, with tuning continuing for 30 days. No new results.
25 July 2016production update▲ Good
After five days with the compressor, Gold Nugget gas flow is stabilising, all days above 500 mcf a day and two above 600. At current prices the well earns about US$1,500 a day; tuning continues for 30 days.
19 July 2016production update▲ Good
Compressor installed at Gold Nugget and gas production cleared to restart, with output to be raised slowly over two weeks. The chairman notes gas rising from US$2 to US$2.80 per mcf over three months. This follows the earlier blow-out flow problems.
26 May 2016debt financing● NeutralMajor
A$350,000 convertible loan note raised from sophisticated investors: 12 months, 15% interest, half convertible at 0.1c a share, secured over the Gold Nugget subsidiary. It paid the US$40,000 owed to the vendor; the balance funds other projects.
4 May 2016asset acquisition disposition▲ GoodMajor
Gold Nugget acquisition completed on revised terms: US$450,000 cash plus 336.3m shares. Company gets 70% of the well on issuing shares, rising to 100% once the remaining US$240,000 is paid from 50% of well profits. A further US$40,000 is due to the vendor.
26 Apr 2016quarterly activities report▼ BadMajor
March quarter: Gold Nugget option extended again; output ranged 150–1,200 mcf a day, with a compressor ordered to steady flow. Board now intends to put Cache on care and maintenance rather than drill, after continuing permitting delays, and to buy producing assets instead.
31 Mar 2016annual report● Neutral
2015 annual report. Sets out the strategy of buying distressed US onshore assets, with a non-binding UK fund MOU for up to US$50m of joint-venture funding and a lender willing to make US$250k–5m loans. Also plans a convertible note raising up to A$600,000; 5 of 26 properties reviewed advanced.
19 Jan 2016admin correction● Neutral
Amended re-lodgement of the 19 January Gold Nugget announcement. The text appears nearly identical; the visible change is a unit correction, from 'million' to 'thousand' cubic feet per day for the earlier 150 rate.
19 Jan 2016production update▲ GoodMajor
Gold Nugget output lifted from 150 to 350–1,600 mcf a day after well work, expected to settle at 500–1,000. Company paid a further A$100,000 to extend completion by 90 days; funding for the US$800k price is still being finalised.
2 Dec 2015investor presentation● Neutral
November investor update repeats the Cache and Gold Nugget stories and adds a Gold Nugget valuation of A$2.94m–$4.25m. Shows cash of $792,000 at 30 September and 5.80bn shares. Funding and acquisition talks continue; no new announcements.
22 Oct 2015asset acquisition disposition▲ GoodMajor
Binding term sheet to buy the Gold Nugget 1-23 gas well in Wyoming for US$800,000, with a US$100,000 deposit and completion within 60 days. It makes 150 MCF gas a day; the company estimates 2–5 BCF recoverable. A second US asset, but the funding facility is still being negotiated.
28 Sept 2015other● Neutral
Notice that a video interview with Managing Director Clinton Carey has been released, with a link. No substantive new information in the announcement.
9 Sept 2015half year report▼ Bad
Half-year report to 30 June 2015: net loss $755,099 (versus $541,015 a year earlier). Restates the Cache completion on 31 July and board changes after period end. Cover pages carry stray references to another company, Kilgore.
4 Sept 2015drilling scheduled● Neutral
Sites for the first two Cache production wells are chosen; permits are expected in October, and the raising funds only the first well. The second well is planned for the first half of 2016. Further asset talks and alternative funding are under way, with no terms given.
31 July 2015asset acquisition disposition▲ GoodMajor
Cache acquisition completed after the 17 July meeting approved it: 50% acquired for shares at 0.1c, with a raising of $1.742m at the same price. Kerry Smith and Bill Rinehart join the board. Shares on issue rise to about 5.69bn; a new well is planned, permit pending.
25 June 2015investor presentation● Neutral
June investor presentation repeats the Cache valuation, the US onshore aggregation strategy and the incoming team. Shows cash of $470,000 at 30 April and 2.43bn shares on issue. No new announcements.
16 June 2015resource reserve update▲ GoodMajor
Notice of meeting for 17 July sent, with an independent valuation of the 50% Cache interest at $29.66m–$35.27m (preferred $30.02m) against a purchase price of $1.2m–$2.1m. Cites ~5.1–6m barrels recoverable; the field currently makes 10–20 barrels a day. The expert called the deal fair and reasonable.
1 May 2015material agreement● NeutralMajor
Cache raising revised to a minimum $700k and maximum $1.85m at 0.1c (700m to 1.85bn shares), up from $600k to $1.5m. Vendors now appoint two directors, not three, and Adrien Wing stays on the board. Approvals are still needed.
30 Mar 2015annual report● Neutral
Corporate governance checklist (Appendix 4G) lodged with the 2014 annual report, pointing to the company website for its governance statement. Administrative filing with no new business information.
30 Mar 2015annual report● Neutral
Annual report for 2014. Krause is chairman, Carey managing director, Wing non-executive director. Restates the Cache plan, now under the 16 March 2015 definitive agreement, and the low-oil-price brownfield acquisition strategy. Still subject to shareholder and regulatory approvals.