14 Nov 2013drilling progress report● Neutral
Le Chiffre 1 was drilling ahead at 1,209 m, planning to reach about 1,500 m before coring. Target depth remains 2,021 m. No results yet.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
29 Oct 2013drilling scheduled▲ GoodMajor
A rig is on site at Le Chiffre 1, the first Southern Cooper appraisal well in PEL 96 (Strike 66.7%, operator), pending final approvals. Planned TD is 2,021 m over about 21 days, with coring. This begins the drilling funded by the August raising.
22 Oct 2013security holder rights change● Neutral
Two parcels of unlisted employee options (675,000 and 500,000) expired on 21 October 2013. Administrative.
18 Oct 2013drilling result▼ BadMajor
Plug milling at Wolters #1H hit trouble at 13,550', where the casing may have split. A meaningful flow test is now uncertain. Strike hired Miro Advisors to review strategic alternatives for Eagle Ford, aiming to limit further Strike capital. This follows the earlier stuck-tool problems.
10 Oct 2013drilling progress report● Neutral
All nine frac stages at Wolters #1H are complete and a coil tubing unit is milling out the plugs. Flow back and testing follow, with Strike to report the 24-hour initial rate. No production result yet.
3 Oct 2013drilling progress report● Neutral
Frac operations at Wolters #1H restarted after the 30 September crew mobilisation, with two of nine stages done in the shortened ~1,800' lateral. Flow back and production testing follow completion of the program.
26 Sept 2013annual report● Neutral
2013 annual report for the year to 30 June. It restates the Orica deal (up to 150 PJ, up to $52.5m prepayments) and ~41,000 gross Eagle Ford acres. It notes Bigham 1H did not achieve commercial rates. Only the opening portion was readable here.
25 Sept 2013drilling progress report▼ Bad
Wolters #1H's stuck equipment could not be fully removed, so the bottom of the hole will be sealed at about 14,800'. Only nine frac stages over ~1,800' of lateral will be done, not the planned 22. The operator says cost won't be materially higher and the test remains valid.
12 Sept 2013director officer appointment● NeutralMajor
Mark Carnegie (9.2% holder via M.H. Carnegie & Co) became Chairman from 11 September 2013, replacing Tim Clifton, who stays as a director. David Baker joins as a non-executive director and will also consult to Strike. The change supports the Cooper Basin push, with field work starting October.
10 Sept 2013drilling progress report▼ Bad
Wolters #1H's first frac stage worked, but tools stuck at 15,644' while setting the plug for stage two, so a workover rig is needed before 21 more stages. At MBCU #17, the first Lower Clearfork zone showed no hydrocarbons; a second zone is fracked awaiting test.
3 Sept 2013investor presentation● Neutral
Good Oil Conference presentation, near-identical to the DUG deck: 704.5m shares, $70m market cap, Wolters 1H waiting on frac, 6.3-16.4 Tcf target. It adds the Carnarvon Basin to the activity list. No new results.
28 Aug 2013investor presentation● Neutral
Conference presentation by David Wrench at DUG Australia. It shows 704.5m shares, a $70m market cap and Wolters 1H 'waiting on frac'. It restates the 6.3-16.4 Tcf Southern Cooper target and Orica offtake; no new results.
13 Aug 2013director officer appointment● Neutral
Formal director interest notices for the August board changes. Mark Carnegie, appointed 9 August 2013, has a relevant interest in 64,836,456 shares through two M.H. Carnegie funds. Ben Thomas and Eytan Uliel's final notices follow; Thomas held 500,000 and 2.5m unlisted options.
12 Aug 2013director officer appointment● NeutralMajor
Mark Carnegie joined the board as a non-executive director from 9 August 2013; his firm M.H. Carnegie & Co holds 9.2% of Strike. Ben Thomas and Eytan Uliel resigned as directors, with Thomas remaining US President.
7 Aug 2013drilling progress report● Neutral
Wolters #1H finished at 18,530' with ~5,500' of lateral in the Lower Eagle Ford; frac stimulation is planned for early September. MBCU #17's first Lower Clearfork zone has been fracked and is flowing back. No production rates yet.
1 Aug 2013capital raising announcement▲ GoodMajor
Strike raised $9.2m by placing 92m shares at $0.10, a 20% discount to the 29 July close; 2m shares to directors need shareholder approval. It funds the three-well PEL 96 appraisal, with drilling from November 2013 and pilot production from April 2014.
What it means for a shareholder
92.0m new shares at A$0.100 to raise about A$9.2m. That's 56% dilution: every existing holder's slice gets 56% smaller. If you held A$1,000 of shares (10,000 at the issue price), your slice goes from 0.0139% to 0.0061% of the company. To keep it you'd need 12,802 more shares - about A$1,280 at the issue price.
Create a free account to see this worked out for your own holding.
1 Aug 2013drilling result▼ BadMajor
Shell's Palta 1 did not find commercial hydrocarbons and is being plugged and abandoned. About 20% of the prospect extended into Strike's WA-460-P (33.33%). Strike paid nothing for the well, but the Carnarvon upside it highlighted is gone.
22 July 2013investor presentation● Neutral
Updated company presentation adds the Orica deal. It lists 614.5m shares, a market cap of $73.7m at 17 July 2013, and 2012/13 revenue of $4.6m. It pitches near-term upside from Cooper, Eagle Ford and Palta; no new results.
16 July 2013material agreement▲ GoodMajor
Strike signed a binding term sheet to supply Orica up to 150 PJ of gas over 20 years from PEL 96 (Strike 66.67%, operator). Orica may pre-pay up to $52.5m as appraisal milestones are met, funding the Southern Cooper project Strike called a 'break-out transaction'.
16 July 2013material agreement● Neutral
Orica's copy of the joint announcement of the binding term sheet for up to 150 PJ of PEL 96 gas, with up to $52.5m of prepayments. Duplicate of the Strike release; no new information.
16 July 2013investor presentation● Neutral
Investor presentation on the Southern Cooper Basin project accompanies the Orica deal. It cites Strike's prospective resource of 6.3-16.4 Tcf and a target ex-field cost of ~$3.00/GJ before royalties. These are targets, not results; largely repeats known points.
5 July 2013drilling progress report● Neutral
Wolters #1H is drilling its 6,000' lateral (about three weeks). MBCU #17 is cased; encouraging logs mean two Lower Clearfork zones will be fracture stimulated and tested. Nearby Penn Virginia wells reported IP24 rates of ~1,100 boepd. No Strike result yet.
25 June 2013drilling progress report● Neutral
Wolters #1H vertical pilot reached 12,850' on 23 June, to be logged and cased before the lateral. Permian MBCU #17 reached 8,040' on 22 June and has been logged, with fracture stimulation of the Lower Clearfork shale to follow.
12 June 2013drilling spud▲ GoodMajor
Wolters #1H spudded 9 June 2013, starting the lower Eagle Ford phase flagged for March; planned 12,850' vertical plus a 6,000' lateral, funded by the BlueRock facility. Strike now has exposure to three wells drilling, including Palta, and says resources now focus on Southern Cooper gas.
4 June 2013drilling spud● Neutral
MBCU #17 in the Permian Basin spudded 2 June 2013, targeting 8,200' to test the Lower Clearfork Shale, then complete in the Middle Clearfork. Strike's ~US$460,000 share is funded by the BlueRock facility announced 23 May. First of four planned 2013 US wells.
23 May 2013debt financing▲ GoodMajor
Strike signed a non-recourse production payment facility with BlueRock Energy Capital, US$6m initial and up to US$8m, repaid from a revenue interest in its producing US wells. It funds four Eagle Ford and Permian wells in H2 2013, after the earlier 2Q plan for the second Eagle Ford well.
21 May 2013investor presentation● Neutral
RBC conference deck repeats known Cooper Basin (6-16 Tcf prospective net) and Eagle Ford (10,680 net acres) points. Market cap is quoted at ~$55m, down from ~$64.5m in the March deck. No new facts.
14 May 2013material agreement termination▼ BadMajor
Torrens Energy elected not to proceed with buying Strike's Carnarvon subsidiary, so the $3.5m sale announced on 18 April falls away. Strike says it will keep looking to realise value from those Carnarvon assets.
30 Apr 2013other● Neutral
Notice that an analyst research report on Strike by MineLife is available on the company website. No substantive information.
18 Apr 2013asset acquisition disposition▲ GoodMajor
Strike agreed to sell its subsidiary holding four Carnarvon Basin permits to Torrens Energy for $3.5m cash, to focus on the Cooper Basin and Eagle Ford. It keeps its 33.3% of WA-460-P next to Shell's Palta well. Completion is expected by late June 2013, conditional on Torrens' due diligence and approvals.