22 Dec 2011capital raising announcement● Neutral
Notice to optionholders of the entitlement offer. Options carry no right to join the offer unless exercised and shares allotted before the 9 January record date. Otherwise repeats known terms.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
22 Dec 2011capital raising announcement● Neutral
Standard notice to shareholders on the entitlement offer: record date 9 January 2012, up to 31,054,468 shares at $0.10. Rights cannot be sold, and the top three holders (about 22%) have committed to take up their shares. Repeats the 21 December terms.
What it means for a shareholder
31.1m new shares at A$0.100 to raise about A$3.1m. That's 33% dilution: every existing holder's slice gets 33% smaller. If you held A$1,000 of shares (10,000 at the issue price), your slice goes from 0.0159% to 0.0106% of the company. To keep it you'd need 4,931 more shares - about A$493 at the issue price.
Create a free account to see this worked out for your own holding.
21 Dec 2011capital raising announcement● Neutral
Managing Director's letter to shareholders restates the $5.6m raising at 10 cents and urges participation in the entitlement offer. It says the company is working on longer-term funding options and flags raising capital at low prices. No new figures.
21 Dec 2011capital raising announcement▼ BadMajor
Strike raises $5.6m at $0.10 a share: a $2.5m placement (25m shares) plus a 1-for-15 non-renounceable offer for up to $3.1m, not underwritten. Funds go to Eagle Ford and Cooper. It says significant further funding is needed and cost cuts are underway. Price is well below August's $0.15.
21 Dec 2011capital raising announcement● Neutral
Formal offer document for the 1-for-15 entitlement offer at $0.10. It opens 11 January and closes 25 January 2012. It is not a prospectus; it restates terms already announced.
20 Dec 2011drilling spud● Neutral
Wintermann #1 in Colorado County, Texas spudded 17 December, targeting the Wolf Ranch Upper Wilcox prospect (P50 15 Bcf). Strike takes a 25% interest. Planned depth is 9,500 feet, about two weeks to drill. This is the further Wilcox well flagged after Kennison.
8 Dec 2011admin correction● Neutral
At ASX request, Strike re-lodges the 7 December presentation with slide 10 removed. The ASX guidelines require projected company value to have an independent basis. The rest is unchanged.
7 Dec 2011investor presentation● Neutral
December presentation pitches three unconventional plays: Cooper Basin (over 6 Tcf net), Eagle Ford (over 8,000 net acres, first wells H1 2012) and Permian (1,875 net acres). Includes company 'success case' valuations. Mostly restates known facts.
5 Dec 2011drilling result▼ BadMajor
Kennison 1 reached 18,600 feet with no commercial hydrocarbons and is to be plugged and abandoned. A dry hole for the 10%-held high-risk well; Strike's cost share was already funded. One more Eaglewood Wilcox well is committed.
30 Nov 2011drilling progress report● Neutral
The operator recommends deepening Kennison 1 from 18,100 to 18,600 feet, with the revised depth expected within two weeks. This pushes back the result of the 10%-held well slightly.
21 Nov 2011regulatory community update● Neutral
Joint-venture partner WHL Energy confirms the same award of WA-460-P, with a 33.33% interest alongside Strike (operator) and Cottesloe. Re-states the Palta well exposure; no new information for Strike.
21 Nov 2011regulatory community update▲ GoodMajor
Strike is awarded offshore permit WA-460-P (81 km2, Exmouth Sub-basin) with a one-third interest as operator. It is interpreted to hold up to 20% (2.5 Tcf) of the 13.5 Tcf Palta Prospect, which Shell is expected to drill in 2012.
17 Nov 2011investor presentation● Neutral
Chairman's AGM address and slides repeat known themes: over 8,000 net Eagle Ford acres, the Permian entry, Cooper wells in the March quarter 2012, and Kennison 1 nearing total depth. Admits Wilcox exploration fell below expectations. No new results.
11 Nov 2011asset acquisition disposition▲ GoodMajor
Strike buys 25% of a Permian Basin joint venture with Torch Energy Advisors (operator), covering a 170,000-acre area. The first project, MB Clearfork in Martin County, produces about 120 bbl/d; Strike's US$3.5m share is paid from cash, with about US$7m more planned in 2012.
10 Nov 2011drilling progress report● Neutral
Kennison 1 was drilling at about 16,400 feet on 9 November, heading for 18,100 feet. It should reach the target Wilcox sands within two weeks. Strike holds 10% of this high-risk, high-reward well.
3 Nov 2011resource reserve update▲ GoodMajor
Strike sets out its Cooper Basin plan with a net P50 prospective resource of 6.1 Tcf gas and 54 million bbl liquids. Beach-operated wells in PEL 95 and PEL 94 are to start in Q1 2012, replacing the earlier vaguer Q4 2011 or early 2012 timing.
29 Sept 2011director officer appointment● NeutralMajor
David Wrench becomes Managing Director from 1 October, with Ben Thomas and Eytan Uliel joining the board; Simon Ashton retires as MD on 30 September but stays as non-executive director. This completes the planned CEO handover. Kennison 1 is at 11,500 feet; Eagle Ford acreage is 24,390 acres.
29 Sept 2011annual report● Neutral
Annual report for the year to 30 June 2011. The chairman describes a shift to large oil-focused projects, debt retired after selling Mesquite and Rayburn for US$95m (US$21.7m net to Strike), and a planned Southern Cooper drilling program over the next 12 months.
6 Sept 2011investor presentation● Neutral
Conference presentation by David Wrench, shown as Managing Director (elect). It restates known projects; it shows cash of A$13m and 440.8m shares at 26 August, and says Eagle Ford acreage is worth US$30-60m (company estimate). Little new.
6 Sept 2011drilling spud▲ GoodMajor
Kennison 1 (West Plumb Bob, 360-680 Bcfe) spudded 31 August to a planned 18,100 feet, taking 100-120 days; Strike's 10% dry-hole share is already funded. Eagle Ford acreage grew to 22,764 acres (6,260 net), with a drilling program planned over six months.
23 Aug 2011capital raising announcement● Neutral
26,645,176 rights issue shares were allotted on 22 August, lifting issued capital to 404,487,370. The 36,329,655-share shortfall will be allotted after the underwriters place it on 26 August.
19 Aug 2011capital raising announcement▲ GoodMajor
The $16.8m raising is complete. Holders took up 26.6m shares (about 42%) of the $9.4m rights issue; underwriters Blackswan and Carnegie cover the 36.3m-share shortfall and receive 3m options each at $0.20, subject to shareholder approval at the 17 Nov AGM.
10 Aug 2011drilling progress report● Neutral
Eagle Ford leases have grown to 20,900 acres (5,748 net). Nearby GeoResources wells, including Black Jack Springs #1H, are reported producing in line with trend, though current rates are below the initial rates. Strike has no well of its own yet.
2 Aug 2011capital raising announcement● Neutral
Confirms the entitlement offer document was sent to eligible shareholders on 2 August 2011. Administrative notice only.
27 July 2011well test result▼ BadMajor
Initial fraccing of Sadie 1's deepest Wilcox zone gave non-commercial flow rates, and the operator proposes to suspend the well. Shallower Wilcox and Cook Mountain zones may be tested. This undercuts the earlier 15-20 Bcf prospective potential.
21 July 2011capital raising announcement● Neutral
Standard letter to optionholders on the rights issue. Options carry no right to participate unless exercised and shares allotted before the 28 July record date. Repeats known terms; no new information.
21 July 2011capital raising announcement● Neutral
Re-lodgement of the optionholder letter on the rights issue, with the same content as the earlier letter. No new information.
21 July 2011capital raising announcement● Neutral
Standard shareholder letter on the rights issue: 1-for-6 at $0.15, up to about 62.97m shares raising up to $9.44m, underwritten (5% fee). Only Australian and NZ holders are eligible. Repeats the 13 July terms; no new information.
What it means for a shareholder
63.0m new shares at about A$0.1499 to raise about A$9.4m. That's 50% dilution: every existing holder's slice gets 50% smaller. If you held A$1,000 of shares (6,671 at the issue price), your slice goes from 0.0106% to 0.0053% of the company. To keep it you'd need 6,670 more shares - about A$1,000 at the issue price.
Create a free account to see this worked out for your own holding.
20 July 2011drilling progress report▲ Good
Eagle Ford leases now 20,270 acres (5,574 net), with nearby GeoResources wells reporting initial rates above 1,200 bbl/d. Kennison 1 spud is set for mid-August. Sadie 1 fraccing starts this week, with flow testing late July/early August after pipeline tie-in.
20 July 2011capital raising announcement● Neutral
Offer document for the entitlement offer: 1 new share for every 6 held at $0.15, opening 2 August and closing 16 August 2011. Follows the 13 July raising; it adds terms but no new development.