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.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
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.
29 Jan 2016quarterly activities report● Neutral
December quarter: Gold Nugget completion extended to 31 March 2016 after a further A$100,000 payment; output has ranged 350–1,000 mcf a day, peaking at 1,600, with freezing issues. Cache approvals delayed because an old well must be plugged first; approvals now expected February.
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.
29 Oct 2015quarterly activities report● Neutral
September quarter: binding term sheet for 100% working interest in Gold Nugget (US$800k, cash and shares mix still unagreed, funding facility in advanced talks). Cache permits now expected in November. Solar assets sold for a nominal offer, so the company holds no solar interests.
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.
31 July 2015quarterly activities report● Neutral
June quarter report restates the Cache completion on 31 July, the $1.742m raising at 0.1c and the board changes. A drilling permit for a new Cache well is being sought. Repeats the earlier announcement.
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.
29 Apr 2015quarterly activities report● Neutral
March quarter: the 16 March definitive agreement for 50% of Cache is awaiting shareholder and regulatory approvals and about $2.4m of raisings. Technical and tenure due diligence gave comfort. Solar still stalled; no reserves stated for Cache. A $250,000 ERM receipt in March is noted.
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.
16 Mar 2015material agreement● NeutralMajor
Definitive agreement signed for 50% of Cache, but terms change: vendors now get 1.29bn shares at 0.1c, plus a raising of $600k to $1.5m at 0.1c, with top-up shares to the vendors if less is raised. Vendors nominate three directors; Adrien Wing to step down.
2 Feb 2015director officer appointment● Neutral
Non-executive director Guy Le Page, chairman since May 2014, resigns with immediate effect. No reason is given in the announcement.
21 Jan 2015quarterly activities report● Neutral
December quarter: Cache term sheet remains pending, with shareholder and regulatory approvals outstanding. Board adds a strategy of buying marginal brownfield oil and gas assets while oil prices are low. Solar still stalled; $467k from ERM still owed.
13 Jan 2015director officer appointment● Neutral
Clinton Carey, who specialises in reverse takeovers, is appointed a director. His related entity Cyprus Investments holds 86.6m shares.
14 Nov 2014capital raising announcement● NeutralMajor
Red Sky completes the $300k loan for Cache and the first tranche of a placement: about 420m shares at 0.08c to raise about $336k. A second tranche of about $274k needs shareholder approval. A further $2.4m raising at 0.2c is planned with the acquisition.
14 Nov 2014admin correction● Neutral
Cleansing notice for the 420,229,122 placement shares issued 14 November, a 25% dilution under the placement limits. Halcyon Corporate gets a 6% fee plus a $176,000 corporate fee. Administrative disclosure of known placement.
4 Nov 2014asset acquisition disposition● NeutralMajor
Red Sky signs a binding term sheet to acquire 50% of the Cache oilfield in Colorado, a new direction after solar stalled. The field makes about 12 barrels a day from one well. It needs about $2.4m of raisings, a $300k first-stage loan, and shareholder approval.