Each one in plain English, with the numbers worked through for a shareholder.
24 Dec 2014capital raising announcement● NeutralMajor
Rey will raise $4M through a placement of up to 50M shares at 8c, below the 10c and 10.3c of the 2014 placements. Funds go to the Dunnart-2 test, two more EP437 wells, two Fitzroy wells and working capital.
What it means for a shareholder
50.0m new shares at A$0.080 to raise about A$4.0m. That's 7.0% dilution: every existing holder's slice gets 7.0% smaller. If you held A$1,000 of shares (12,500 at the issue price), your slice goes from 0.00188% to 0.00175% of the company. To keep it you'd need 942 more shares - about A$75 at the issue price.
Key has tendered for the Dunnart-2 production test, with three suitable completion rigs identified. About 5 m of net pay would be perforated in a roughly one-week test, aimed at late February 2015, subject to regulatory approvals.
Rey extended its on-market share buyback; 1,452,151 shares were bought back over the previous 12 months. The extension is a routine administrative notice.
Oil Basins says Backreef does not presently hold a 50% beneficial interest in the Derby Block and calls Rey's deal highly conditional. A tribunal decision is expected by 27 January 2015. This disputes the basis of Rey's 28 November acquisition.
28 Nov 2014asset acquisition disposition● NeutralMajor
Rey agreed to acquire Backreef's 50% of the roughly 5,000 km2 Derby Block (EP487), Canning Basin, for $2M on production licence grant or a 2% royalty. It is conditional on a tribunal ruling over title, termination of other sale agreements and FIRB approval. Co-owner Oil Basins disputes it.
AGM presentation repeating known facts: Dunnart-2 oil shows, a production test and two exploration wells planned for 2015, and about 650 km of Fitzroy seismic. It shows cash of $1.5M at 24 November and about 659.9M shares.
Duchess Paradise P1-seam coal resources and reserves were restated under the 2012 JORC Code: 305.8 Mt resource and 26.3 Mt reserve (17.8 Mt marketable). The figures are unchanged from 2011, and no mining has occurred.
Annual Report for the year to 30 June 2014, with added proved and probable detail for the 26.27 Mt coal reserve (20.4 Mt proved, 5.8 Mt probable). Board is unchanged. The extract is truncated, so no financial figures are available.
Key, as operator, says Dunnart-2 logs show at least 5 m of good reservoir sand likely oil-bearing, with drilling fluid invasion mixing the samples. The joint venture agreed in principle to production test it, subject to budget and approvals, and is weighing up to three more prospects.
Full-year accounts to 30 June 2014, with the directors' report and KPMG as auditor. The extract provided is truncated and shows only the board (unchanged) and no financial figures, so nothing further can be stated.
Standard secondary trading notice for the 4,854,368 shares issued on 9 September at 10.3c, allowing them to be on-sold. Administrative; no new information.
Disclosure that the 4,854,368-share placement lifted shares on issue from 655,202,151 to 660,056,519, a dilution of 0.74%. No underwriting, fees or costs were incurred.
Rey completes its $3M raising by issuing a final 4,854,368 shares at 10.3c to a sophisticated investor. This closes the placement started in July, and the funds support Dunnart-2 and Fitzroy seismic.
What it means for a shareholder
4.9m new shares at A$0.103 to raise about A$500,000. That's 0.735% dilution: every existing holder's slice gets 0.735% smaller. If you held A$1,000 of shares (9,709 at the issue price), your slice goes from 0.00148% to 0.00147% of the company. To keep it you'd need 72 more shares - about A$7 at the issue price.
Dunnart-2 is cased to 657 m and suspended, and the rig released, ready for production testing subject to approval. Only two small 50cc fluid samples were recovered before a tool failure. The joint venture will decide next steps after evaluation.
Preliminary logs suggest reservoir-quality sand at the top of the Bookara, and approval was received to suspend Dunnart-2 with 7-inch casing. The joint venture will decide whether production testing is warranted. No more daily reports will be issued.
Wireline logs were run and are being interpreted, with results from the formation tester still to be integrated. Key has applied to suspend the well with 7-inch casing for possible later production testing. No conclusion on pay yet.
The second drill stem test over 13 m failed mechanically, so it was invalid, though the tool held sandstone fluorescing like live oil. Dunnart-2 then reached 670 m total depth with further oil shows. Wireline logging is next.
After cleaning the hole, Dunnart-2 drilled 11 m more of Bookara Sandstone to 627 m, finding further fluorescence and oil shows. A second drill stem test over 614-627 m is being prepared.
The first drill stem test tools were completely plugged with shale fill, so the test was invalid. It says nothing about the oil zone itself. The joint venture will re-test or drill deeper and test again.
The first drill stem test over 614-616.87 m may have misrun or plugged, as fill was noted in the hole. The joint venture is weighing a re-run or drilling deeper first. No flow result yet.
Dunnart-2 hit the Bookara Sandstone at 614 m and found live light oil (preliminary 34° API) in the first 2.87 m drilled. Rey (43.47%) now awaits a drill stem test to confirm the oil is recoverable. This is the first oil sign from the well.
Rey discloses its 15M-share placement at 10c: 11.63M shares under the 7.1A capacity, the rest under 7.1. Shares on issue rose from 643.6M to 655.2M on the 7.1A portion, a dilution of 1.80%. No fees or underwriting.
Dunnart-2 drilled to 612 m, with two gas shows about ten times background in the Kockatea Shale (Arranoo Sandstone) at roughly 529-531 m. The Bookara Sandstone target is predicted at 616 m, so the main result is close.
Secondary trading notice for a further 15M shares issued at 10c on 19 August ($1.5M). This is part of the $3M placement announced 30 June.
What it means for a shareholder
15.0m new shares at A$0.100 to raise about A$1.5m. That's 2.3% dilution: every existing holder's slice gets 2.3% smaller. If you held A$1,000 of shares (10,000 at the issue price), your slice goes from 0.00156% to 0.00153% of the company. To keep it you'd need 234 more shares - about A$23 at the issue price.
Dunnart-2 has drilled to 496 m and met an encouraging wet gas show at 460-475 m in coal, several times higher than at Dunnart-1. That interval is not reservoir rock. The Bookara target at about 617 m is next, then a drill stem test.
Dunnart-2 remains at 294 m while the blowout preventer is fitted and tested, with extra crew arriving. Daily reports will begin once drilling resumes. No new result.
Dunnart-2 is still at 294 m while rig maintenance is finished before the blowout preventer is fitted. The fixed-price drilling contract means the joint venture incurs no cost while waiting. The 8.5-inch section to the Bookara is expected to take two to three days.
Dunnart-2 reached casing point at 294 m, with the Cadda Formation within 1 m of prediction, and 9 5/8-inch casing is being cemented. Next is blowout preventer work, then drilling to the Bookara at about 617 m. No shows yet.
