Past year: ▼ 5%(9.70c – 12.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
15 July 2016drilling progress report● Neutral
Klebb 4's submersible pump was commissioned, so all four Klebb wells are now on test. Klebb 3 sustains 730-750 bwpd, but this means it will take longer to reach the conditions that produce rapid gas increases. Klebb 2 is still gas-handling constrained and is to be upgraded.
21 June 2016drilling progress report▲ Good
The Klebb 4 frac was pumped and the well is flowing back. Klebb 3 water production is about 550 bwpd versus about 450 before its workover, a 20-25% productivity gain. The same upgrade is planned for Klebb 2. No new gas rates given.
26 May 2016drilling progress report▲ Good
May testing tracked previous experience, with Klebb 3 water production now above 550 bwpd. Klebb 4 frac (500,000 lbs) and pump installation remain on track for June, with testing from early July. Four-well water capacity is expected to approach 2,000 bwpd.
18 May 2016security holder rights change● Neutral
Unlisted employee performance rights (566,667, 566,667 and 566,666 at 20, 35 and 50 cent vesting prices) expired on 14 May 2016. Administrative notice only.
2 May 2016drilling progress report▲ Good
Pump upgrades at Klebb 1, 2 and 3 were completed in April and all wells are back on test. Gas flows restarted after a four-week shut-in, with reservoir pressure back to about 2,300 psi. Klebb 4 frac and pump completion is due in June.
7 Apr 2016capital raising announcement● NeutralMajor
Strike raised $6.7m through a placement of 67 million shares at $0.10, a 13% discount to the 1 April close. Directors take 1.7m shares, subject to shareholder approval. Funds go to accelerating production testing and pre-development at Southern Cooper.
What it means for a shareholder
67.0m new shares at A$0.100 to raise about A$6.7m. That's 7.4% dilution: every existing holder's slice gets 7.4% smaller. If you held A$1,000 of shares (10,000 at the issue price), your slice goes from 0.0012% to 0.00111% of the company. To keep it you'd need 804 more shares - about A$80 at the issue price.
Create a free account to see this worked out for your own holding.
31 Mar 2016drilling progress report▲ Good
Operations update: record gas flows were reached in February, but flows are limited by the Klebb 2 and 3 jet pump capacity, not the reservoir. Pump upgrades are due for recommissioning in April, and Klebb 4, a larger-casing well, is planned. Commercial rates are still not conclusively demonstrated.
14 Mar 2016price query● Neutral
ASX queried a rise in the share price from $0.120 to an intraday $0.145, with higher volume. Strike replied it knows of no unannounced information explaining the trading and says it complies with listing rules.
3 Mar 2016investor presentation● Neutral
Presentation by David Wrench at a Zurich resources conference, repeating known points: Southern Cooper project, tightening east coast gas market, cash of $6.4m and 833.3m shares. No new results disclosed in the visible text.
29 Feb 2016half year report● Neutral
Half-year accounts to 31 December 2015 restate known Klebb results: record gas flows, with gas rising sharply once water output holds above 400-450 bwpd per well. Cash was $6.4m. The report cites over 2.2 million acres across five permits; commercial rates are still not demonstrated.
22 Dec 2015drilling progress report▲ Good
Strike reports record gas flows at the Klebb pilot, with strong, consistent gas and stable water at Klebb 2 and 3. Klebb 1 pump rate is limited because stable gas separation is not yet achieved. No flow figures given, and commercial rates are not yet demonstrated.
18 Dec 2015other● Neutral
Director Brendan Ostwald moved 1,968,330 shares from direct to indirect holding via a family trust, with no shares bought or sold. Administrative notice only.
14 Dec 2015security holder rights change● Neutral
Three series of 50,000 unlisted employee performance rights (vesting prices 20, 35 and 50 cents) were forfeited. Administrative notice only.
10 Nov 2015drilling progress report▲ Good
The Klebb 1 pump workover was completed on 2 November and testing restarted on 3 November. Running at about 80 barrels of water a day with no downtime, gas was measured within days. This resolves the October pump shut-in, with all three wells online.
2 Nov 2015security holder rights change● Neutral
500,000 unlisted employee options with a 20 cent exercise price expired on 1 November 2015. Administrative notice only.
12 Oct 2015drilling progress report▼ Bad
Klebb 1 pump shut in after gas built up in the tubing, and a workover is planned with a new pump assembly. A rig takes about two weeks to mobilise, with completion expected at the end of October. Klebb 2 and 3 continue at about 500 bwpd. This is a setback to the pilot's timing.
24 Sept 2015drilling progress report▲ Good
Klebb Phase 3 testing is on track: Klebb 2 and 3 each produce about 550 barrels of water a day, and Klebb 1 about 200. Gas per barrel of water is roughly double the prior phase. Management sees commercial rates as achievable, but they have not been reached.
21 Sept 2015debt financing▲ GoodMajor
The ATO confirmed an $8.5m R&D refund for FY15, above the earlier $8.2m estimate. Strike repays the $5.9m Macquarie facility in full, leaving $2.6m for cash. The facility is extended to 30 Nov 2016 with a new limit of up to $4.0m. This resolves the repayment thread.
21 Sept 2015annual report● Neutral
FY2015 annual report released; AGM set for 29 October 2015 in Sydney. The chairman cites sustained gas flows, the D&M resource certification, $9.9m of prepayments, and $11.7m cash with an $8.5m refund received after year end. Largely repeats known results.
21 Sept 2015admin correction● Neutral
Appendix 4G governance disclosure key lodged with the annual report, pointing to the corporate governance statement on the website. Compliance filing only, with no new information.
1 Sept 2015drilling progress report▲ Good
All three Klebb wells are producing gas with rates building. Klebb 2 and 3 pumps run at about 60% of capacity, and Klebb 1 pump commissioning issues were resolved. Fracs gave higher gas rates earlier at lower pump rates; ramp-up continues for about 6 weeks.
1 Sept 2015investor presentation● Neutral
Good Oil conference presentation repeating the gas market case and project story. Shows 833.3m shares, market cap $91.6m (28 Aug 2015, down from $112.5m in June) and $11.7m cash at 30 June. No new results.
10 Aug 2015drilling progress report▲ Good
Workovers at the three Klebb wells are finished and the Phase 3 extended flow test began the week before. Early gas flows are seen at each well, and productivity at Klebb 2 and 3 is reported substantially higher after the fracs. Rates will be ramped up over coming weeks.
29 July 2015investor presentation● Neutral
Conference presentation by David Wrench on east coast gas supply costs and the Southern Cooper Basin project, positioning Strike as an independent gas supplier. Repeats the known 104 Bcf net 2C resource; no new results.
22 July 2015drilling result▲ Good
Fracs at Klebb 2 and 3 were completed, 2-3 times the size of the Klebb 1 frac, within budget. Gas reached surface at Klebb 2 in early flowback. Management cites six of six successful fracs in the Patchawarra coals.
26 June 2015investor presentation● Neutral
Re-release of the 15 June investor presentation, now with added detail on the PEL 96 resource estimates from the February 2014 and April 2015 announcements. No new results.
25 June 2015drilling progress report● Neutral
Fracs on Klebb 2 and 3 are due by end of June, with a Klebb 1 rod pump workover starting. Le Chiffre 1, shut in since 26 April, shows pressure down to about 2,400 psia from 2,900; testing resumes late July.
19 June 2015security holder rights change● Neutral
150,000 unlisted employee performance rights (three series of 50,000, vesting prices 20, 35 and 50 cents) were forfeited. Administrative notice only.
15 June 2015investor presentation● Neutral
Institutional investor presentation repeats the project story: 2C contingent resource of 104 Bcf net, $17m of offtaker prepayments received, and market cap of $112.5m. Targets initial reserves in the second half of 2015. No new results.
28 May 2015security holder rights change● Neutral
Orica's unlisted option to subscribe for up to 20,833,333 shares for $2.5m expired unexercised on 27 May 2015. This closes the option thread, consistent with the earlier agreement that Orica would not subscribe further.
