27 June 2014other● Neutral
Strike lodged its revised securities trading policy under ASX Listing Rule 12.9. This is a governance and administrative notice with no operational or financial substance.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
24 June 2014drilling progress report▲ Good
Fracture stimulation of Le Chiffre 1 finished, with two stages pumped (about 118,000 lbs and 460,288 lbs of proppant). Flow back is starting, and the frac equipment moves to Klebb 1 later that week. No gas result yet.
23 June 2014material agreement▲ GoodMajor
Strike signed a binding 45 PJ gas sales agreement with Orora, adding 15 PJ to the 30 PJ option from January and replacing it. Fixed supply over 10 years from 2017. Contracted offtake now totals 307.5 PJ net to Strike.
23 June 2014material agreement● Neutral
Orora lodged a cover note forwarding Strike's same-day announcement of the 45 PJ gas sales agreement. It carries no new information beyond Strike's own release.
20 June 2014drilling progress report● Neutral
Frac operations at Le Chiffre 1 have begun, a four-week first phase with at least three months of production testing to follow. A six-well drilling program is planned from September, aiming for up to eight operated wells on test by Q1 2015.
17 June 2014drilling progress report▲ Good
Frac preparation at Le Chiffre 1 and Klebb 1 is largely done, with pumping due late that week. Diagnostic injection tests showed permeability above expectations, so the frac design will be modified. Manager cautions flow testing is still needed.
16 June 2014director officer appointment● Neutral
Jody Rowe (ex-QGC, Santos) and Brendan Ostwald (Ostwald Bros. CEO) join as non-executive directors from 30 June 2014. Tim Clifton and Tim Goyder resign from the board but stay as shareholders, as Strike prepares to accelerate Southern Cooper development.
4 June 2014investor presentation● Neutral
June 2014 investor presentation restates the Southern Cooper Basin story: 4.5 Tcf net PEL 96 prospective resource, about $3.5m well costs, and a planned program of 6 additional wells. Lists 833,330,946 shares and a $100.0m market cap (2 June). No new results.
16 Apr 2014quarterly activities report▲ Good
March quarter cash was $13.1m, up from $3.7m, after the $12.7m placement and $3.0m R&D facility; it was $15.2m on 14 April. Fracture stimulation in PEL 96 and Davenport is due in the June quarter. The Eagle Ford sale process is expected to conclude in the June quarter.
16 Apr 2014joint venture update● Neutral
AGL has paid all past-due PEL 96 cash calls in full and both parties funded their share of the coming fracture program, and they signed a Deed of Cross Security. This reverses the 7 April assignment notice, so Strike's stake appears to stay at 66.67% (inference).
7 Apr 2014joint venture update▲ GoodMajor
Strike notified partner Australian Gasfields (an Energy World subsidiary) that its 33.33% PEL 96 interest is assigned to Strike after AGL failed to pay a cash call, which would give Strike 100%. Strike has funded $1,483,262 of unpaid cash calls. Operations are said to be unaffected.
25 Mar 2014capital raising announcement● Neutral
Strike confirmed the 105,977,949 placement shares at $0.12 (about $12.7m) were issued on 20 March 2014. This is the compliance notice and share issue form for the 13 March raising. Shares quoted on ASX now total 812,497,613.
25 Mar 2014material agreement▲ Good
Orica announced that it has agreed to take an additional 100 PJ of gas from Strike, supplied over ten years from 2020. This lifts Orica's access to up to 250 PJ through 2036. This is Orica's side of the deal that Strike announced separately the same day.
25 Mar 2014material agreement▲ GoodMajor
Strike signed a full gas supply agreement with Orica, lifting the total from 150 PJ to 250 PJ, with up to $47.5m of elective prepayments plus up to $5m in shares at $0.12 (subject to shareholder approval). The PEL 96 JV committed to pilot testing; fracture stimulation starts in May, with flow results expected in July 2014.
13 Mar 2014capital raising announcement▲ GoodMajor
Strike raised $12.7m through a placement of 105,977,949 shares at $0.12 to institutional investors, led by Bell Potter. Funds go to accelerate Southern Cooper Basin appraisal, with fracture stimulation of Le Chiffre 1, Klebb 1 and Davenport 1 expected from May.
What it means for a shareholder
106m new shares at A$0.120 to raise about A$12.7m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (8,333 at the issue price), your slice goes from 0.00118% to 0.00103% of the company. To keep it you'd need 1,254 more shares - about A$150 at the issue price.
Create a free account to see this worked out for your own holding.
11 Mar 2014investor presentation● Neutral
Presentation by the managing director at the Sydney Excellence in Oil & Gas conference repeats known facts: 4.5 Tcf net PEL 96 resource, about $3.5m well costs and the gas deals. It shows market cap of $98.9m on 7 March 2014. No new results.
10 Mar 2014half year report● Neutral
Half-year report to 31 December 2013 mainly restates the Le Chiffre 1 (105 m coal) and Klebb 1 (147 m coal) results and the 4.5 Tcf net PEL 96 prospective resource. Production pilot testing is planned for the June 2014 quarter. The financial figures are not in the text provided.
7 Mar 2014other● Neutral
This is an S&P Dow Jones index rebalance notice for the broad ASX market. The visible text does not mention Strike Energy. It carries no company-specific substance (Energy World Corporation, Strike's PEL 96 partner, is listed as removed from the ASX 200).
27 Feb 2014investor presentation● Neutral
Updated investor presentation restates the PEL 96 4.5 Tcf net prospective resource, roughly $3.5m well costs and the gas supply deals, including the Austral Bricks option. It lists 706,519,664 shares and a market cap of $81.2m. No new results.
27 Feb 2014material agreement▲ Good
Strike signed a gas supply option with Austral Bricks for 12.5 PJ, delivered at 1.25 PJ a year at a fixed price over 10 years from 2017. An option fee is paid as prepayment if the PEL 96 JV proceeds with a pilot test. Total option and Orica deals now stand beside Orora's 30 PJ.
25 Feb 2014asset acquisition disposition● NeutralMajor
The Eagle Ford JV has hired Scotia Waterous to sell the Cypress Group's Eagle Ford acreage, with bids due early April; Strike (27.5%) will take part. It also farms out Edwards prospects to Fairways, keeping 6.875%, and plans to seek advisers to sell all US assets. This follows the earlier Eagle Ford review.
20 Feb 2014investor presentation● Neutral
Investor presentation accompanying the resource upgrade repeats the 4.5 Tcf net PEL 96 prospective resource, roughly $3.5m well costs and the Orica and Orora supply agreements. No new results are announced.
19 Feb 2014resource reserve update▲ GoodMajor
Prospective resource in PEL 96 rose to a best estimate of 6.8 Tcf, 4.5 Tcf net to Strike, following the two appraisal wells. The Phase One Area is now 1.2 Tcf net. Vertical production wells are costed at $3.2-3.6m each. Production testing is planned for the June 2014 quarter.
30 Jan 2014quarterly activities report● Neutral
December quarter production was 21,752 boe (down 4%) and revenue A$1.074m (down 5%). Cash was A$3.7m at quarter end. It restates the Le Chiffre and Klebb results and the Orora option. It also says an Eagle Ford outcome limiting further capital is likely. A A$3.0m R&D refund facility was arranged.
15 Jan 2014material agreement▲ GoodMajor
Strike signed a gas supply option agreement with Orora for 30 PJ, delivered at 3 PJ a year at a fixed price over 10 years from 2017. Orora pays an option fee if the PEL 96 JV proceeds with a pilot test. Complements the Orica deal.
15 Jan 2014other● Neutral
Orora Limited released Strike's 15 January announcement of the 30 PJ gas supply option agreement, with a one-line cover note. No new information.
10 Jan 2014joint venture update● Neutral
Energy World Corporation (33.3% of PEL 96) re-released Strike's 8 January Klebb 1 and appraisal program results announcement. It adds no new information.
8 Jan 2014drilling result▲ GoodMajor
Appraisal drilling is finished. Klebb 1 reached 2,193 m with about 147 m of net coal, against 89 m pre-drill estimate, and Le Chiffre 1 found 105 m. Strike says both wells beat expectations. Fracture stimulation and production tests at both wells are planned for Q2 2014.
18 Dec 2013investor presentation▲ Good
December investor update repeats the Le Chiffre 1 results (TD 2,089 m, thick gas-saturated coals) and says wells under 2,200 m should be low cost. It shows Klebb 1 spudded on 16 December and targets gas supply in 2017. Mostly restates known facts.
18 Dec 2013drilling progress report▲ Good
Le Chiffre 1 is cased and suspended for fracture stimulation and flow testing, with over 105 m of coal found including a 70 m gross pay interval in the Patchawarra. Klebb 1 spudded on 16 December and is at 960 m. Completion and testing are planned for Q2 2014.