Past year: ▼ 68%(0.90c – 3.10c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
2 June 2020director officer appointment● NeutralMajor
Management restructure: Mike Herrington becomes Chief Operating Officer, and Lucy Snelling moves from CEO to Head, Corporate and Commercial, both reporting to Cottee. Pump failures were traced to swelling of the pump rubber parts; new pumps are being made in Canada, with gas flowing again expected mid-to-late July.
27 May 2020security holder rights change● Neutral
1,875,000 unlisted options lapsed. Capital structure is now 146,357,014 ordinary shares plus unquoted options and performance rights. Administrative notice only.
30 Apr 2020quarterly activities report● Neutral
March quarter report restates that Nyanda-4 peaked at 227 mscf/d on 23 January before the pump failed, and that floods stopped repairs until April. Serocold-1 testing was also halted. Confirms a viable pipeline route and planning for a short Aldinga East-1A flow test. Cash not shown in the truncated text.
16 Apr 2020other▼ BadMajor
Chairman's letter says the company is cutting board and management pay and supplier costs, and tightening focus on reserve-building. First gas is now delayed from 2021 to 2022, which the board attributes to recent events. Both wells are expected to be dewatering again by end of April.
1 Apr 2020drilling progress report● Neutral
Field access is restored after the wet season; the board will restart Nyanda-4 and Serocold-1 production tests, expected in April and running up to three months. A desktop study confirmed a viable pipeline route to the Queensland Gas Pipeline (~45km). Talks with potential pipeline partners are progressing.
5 Mar 2020half year report● Neutral
Half-year to 31 December 2019: net loss $1,748,529 (prior year $1,054,672). Confirms Dome's 20% entitlement in PL 231 and the new conventional gas pool at Aldinga East-1A. Notes February rain blocked access. Text is truncated, so cash is not shown.
12 Feb 2020drilling progress report▼ Bad
Production tests at Nyanda-4 (227 mscf/d peak) and Serocold-1 (started 17 Jan) are stalled by pump problems and heavy rain blocking site access. Aldinga East-1A shows rising wellhead pressure, suggesting gas may be flowing. The company says it has identified fixes.
31 Jan 2020quarterly activities report● Neutral
December quarter report covers Nyanda-4 production testing (227 mscf/d recorded before a pump problem), the Aldinga East-1A gas discovery and Serocold-1 drilling. Largely restates earlier announcements; text is truncated so cash figures are not shown.
13 Jan 2020production update▼ BadMajor
A flow audit found faulty metering equipment, so previously announced Nyanda-4 rates were overstated; the rate is 120 mscf/d on 13 January, about 2,000 mscf produced in total. This corrects the 156 and 436 mscf/d figures. NSAI engaged as reserve certifier.
8 Jan 2020drilling progress report● Neutral
Workover to complete Serocold-1 for production testing has started, with the test due after surface facilities are installed around the end of the following week. The company is cross-checking Nyanda-4 flow rates with a Critical Flow Prover over the break.
30 Dec 2019production update▲ Good
Nyanda-4 gas production reported at 436 mscf/day, up from 156 mscf/day on 16 December, with fluid level at 648m. Serocold-1 production test due shortly. Later flow-meter problems found by audit (13 January) showed these rates were overstated.
19 Dec 2019capital raising announcement▲ GoodMajor
After the Nyanda-4 results, State Gas accepted a further $500,000 of subscriptions at the same $0.65 per share (about 0.77 million shares), taking the December raising to about $1.5 million. Funds are for additional testing and 2020 pilot planning.
What it means for a shareholder
770,000 new shares at about A$1.95 to raise about A$1.5m. That's 0.532% dilution: every existing holder's slice gets 0.532% smaller. If you held A$1,000 of shares (513 at the issue price), your slice goes from 0.000357% to 0.000355% of the company. To keep it you'd need 3 more shares - about A$6 at the issue price.
Create a free account to see this worked out for your own holding.
16 Dec 2019production update▲ GoodMajor
Nyanda-4 was producing 156 mscf/day after two weeks on test, with minimal water. Serocold-1 reached 1,200m with about 27m of net coal and promising permeability. Its production test is expected to start mid to late January.
11 Dec 2019capital raising announcement● NeutralMajor
State Gas raised about $1 million through an oversubscribed placement at $0.65 per share (about 1.5 million new shares), led by Morgans. Funds go to assessing the drilling campaign and planning the 2020 pilot program. The price is below June's $0.70 placement.
What it means for a shareholder
1.5m new shares at about A$0.6667 to raise about A$1.0m. That's 1.0% dilution: every existing holder's slice gets 1.0% smaller. If you held A$1,000 of shares (1,500 at the issue price), your slice goes from 0.00104% to 0.00103% of the company. To keep it you'd need 16 more shares - about A$11 at the issue price.
Create a free account to see this worked out for your own holding.
10 Dec 2019investor presentation● Neutral
Chairman Cottee's 'State of Play' presentation restates 100% ownership of PL 231, the 13.75 m3/t average at Nyanda-4 and the Target 2021 plan, with reserve certification and permitting both expected by November 2020. Largely repeats known facts.
9 Dec 2019admin correction● Neutral
Corrects one sentence in the morning's update: Nyanda-4 bottom hole pressure was reduced 'by' 377 psi, not 'to' 377 psi. Everything else is unchanged and the full text is reissued.
9 Dec 2019drilling progress report● Neutral
Serocold-1 spudded 6 December (269m); Nyanda-4 on production test since 4 December, with rising casing pressure suggesting gas desorption. Aldinga East-1A gas sample is 97.88% methane, but permeability testing was impaired by drilling brine absorbed during two months shut-in.
3 Dec 2019drilling progress report● Neutral
Serocold-1 expected to spud that weekend with Silver City Drilling Rig 25, drilling and testing in about two weeks. Aldinga East-1A drill stem tests are under way and Nyanda-4 production testing is due to start that week; little gas expected in the first weeks.
27 Nov 2019joint venture update▲ GoodMajor
Queensland Court of Appeal struck out Dome's appeal against the 16 September judgment, with indemnity costs to State Gas. This resolves the open thread: State Gas states its ownership of PL 231 is confirmed at 100%, with Dome's 20% transferring for $233,333.
27 Nov 2019drilling progress report▲ Good
Nyanda-4 workover finished: pump installed and coals under-reamed, with production test expected before Christmas and lasting 3-6 months. TDC Rig 4 now moves to Aldinga East-1A for drill stem tests. Serocold-1 still targeted before year end.
13 Nov 2019agm notice● Neutral
Chairman's AGM address recaps the year (60% to 100% of Reid's Dome, Nyanda-4 gas content 13.75 m3/t) and backs the conventional-plus-coal gas combination. Mike Herrington to oversee 2020 pilot design part time. Mostly restates known results.
13 Nov 2019drilling result▲ GoodMajor
Aldinga East-1A logging found 10-14m of net coal and a new conventional gas pool in about 9m of Cattle Creek sand, plus a further 9m of gas sand deeper (18m total to 802m). Well suspended for drill stem tests; Serocold-1 design under review.
11 Nov 2019other● Neutral
ASX paused trading in State Gas shares pending a further announcement. No reason is given in the text.
7 Nov 2019drilling progress report▲ Good
Drilling at Aldinga East-1A was suspended at 882m for wireline logging and permeability testing. TDC Drilling's Rig 4 is mobilising to re-enter Nyanda-4 next week for production testing, with the aim of finishing before the wet season.
4 Nov 2019resource reserve update● NeutralMajor
Final Nyanda-4 gas content is 13.75 m3/t average from 10 samples, replacing all prior figures including the 14.6 m3/t reported in July. The thickest seam is 16.94 m3/t. This is a small downward revision to the earlier average.
31 Oct 2019quarterly activities report▲ Good
September quarter report: seismic processing finished, the Aldinga East-1A spud and Supreme Court win for the final 20% at $233,333 are covered. Plans now include re-entering Nyanda-4 for production testing. Largely restates earlier announcements; cash figures not shown in the text.
23 Oct 2019drilling result▲ GoodMajor
Coring at Aldinga East-1A finished; the 563.5-649m interval had coal seams and a conventional sandstone reservoir, with gas bubbling from both. Gas then flowed vigorously from the well, so mud weight was raised. Company believes it comes from sandstone and may help project economics.
22 Oct 2019investor presentation● Neutral
Morgans Cairns presentation repeating prior releases: 100% of PL 231, Aldinga East-1A spudded 4 October and coal hit at 560m. The text states it contains no new material.
18 Oct 2019drilling progress report▲ Good
Coring began at Aldinga East-1A after coal tops were hit at 560m, the shallow end of the 560-600m forecast. Gas was seen bubbling from the drilling mud, as at Nyanda-4. About 150m of core is planned before drilling to 1,200m.
8 Oct 2019investor presentation● Neutral
QUPEX presentation by Cottee restating the PL 231 story and forward program, now stating State Gas holds 100%. Presentation repeats known facts; the gas content figures it shows were later replaced by the 4 November advice.
