29 Apr 2010drilling spud▲ Good
Muegge 1 (Homestead prospect, Strike 30%) began drilling on 28 April, to 14,000 feet in about 45 days. Starnes 1 is due in early May. Flow testing of the Louise discovery well is due to start, with all test gas sold.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
20 Apr 2010investor presentation● Neutral
Company presentation by the COO at a Sydney conference. The capital structure slide shows 328.6m shares, 27.5c price, A$90.4m market cap, and A$11.1m cash and investments at 31 March. It mostly repeats known facts.
16 Apr 2010drilling progress report● Neutral
The rig for Muegge 1 on the Homestead prospect has been mobilised and is rigging up after truck delays. Spud is expected before the end of April. It is the first of the three-well, 350 Bcf program.
8 Apr 2010drilling scheduled▲ GoodMajor
Eaglewood JV (Strike 30%) has contracted two rigs for a three-well Texas program (Homestead, Pathfinder, Deerslayer) targeting up to 350 Bcf, about 100 Bcf to Strike's share. First drilling starts within a week. Louise production facilities near completion.
26 Mar 2010investor presentation● Neutral
Presentation on Strike's Southern Cooper Basin activities at an Adelaide symposium. It cites PEL 96 prospective gas of 3,700-9,300 PJ and over 17,000 sq km of acreage. It largely repeats known facts rather than giving new results.
23 Mar 2010drilling scheduled▼ Bad
Floodwater cut the Strzelecki Track, delaying the PEL 96 coal seam gas corehole program, planned for early April, by at least two months. No drilling equipment had been mobilised. This is another delay after the earlier January and February slips.
10 Mar 2010material agreement termination▼ BadMajor
Strike ended its Cadlao oilfield pursuit: mutually acceptable farm-in terms could not be agreed with Blade Petroleum. This resolves the thread that began with the December option. Strike will keep looking for new opportunities and focus on its US and Cooper assets.
9 Mar 2010half year report▲ Good
Half-year to 31 Dec 2009: net profit A$364,000, EBITDAX A$3.1m, cash A$13.1m. Production returned to full strength in November after low-gas-price cutbacks, about 700 boe/d. Gardner Duncan 1 is being tied in; up to 10 US wells planned.
1 Mar 2010asset acquisition disposition● NeutralMajor
Strike will not exercise its option to buy Blade Petroleum (Cadlao oilfield), preferring to pursue a farm-in; talks with Blade continue. This ends the proposed A$20m acquisition. Gardner Duncan 1 is cased with gas sales expected in 4-6 weeks. PEL 96 drilling delayed again by flooding.
19 Feb 2010drilling result▲ GoodMajor
Strike reports a significant gas discovery at Gardner Duncan 1 (30% interest), with gas pay from logs. Testing to confirm commerciality takes 4-6 weeks. The company says its share could double reserves; a 100 Bcf Wilcox prospect is next, offsetting the Louisiana dry hole.
17 Feb 2010drilling progress report● Neutral
Gardner Duncan 1 reached 10,433 feet with gas shows in the Wilcox Formation; logging will decide whether to test it. PEL 96 CSG drilling is delayed a further 4-6 weeks by flooding. Cadlao decision due by 28 February.
4 Feb 2010admin correction● Neutral
Correction to the earlier release: the Gardner Duncan 1 spud date is 2 February 2010, not 2 January. Nothing else changed.
4 Feb 2010drilling spud▲ GoodMajor
Gardner Duncan 1 on the Louise Prospect (Eaglewood JV, Texas, Strike 30%) spudded, targeting 30 Bcf to 10,300 feet under a turn-key contract that limits cost overruns. Success could double Strike's reserves. Spud date was later corrected.
1 Feb 2010drilling result▼ BadMajor
The Driskill Land Co 1 well in Louisiana reached 8,962 feet and found no commercial hydrocarbons, so it is being plugged and abandoned. The Eaglewood JV's Gardner Duncan 1 well in Texas, with Strike at 30%, is due to spud within days.
27 Jan 2010material agreement● Neutral
Strike extended its option over the Cadlao oilfield acquisition from 31 January to 28 February 2010 to finish due diligence. This continues the December option and delays the decision by a month.
18 Jan 2010drilling progress report● Neutral
Driskill well spudded 15 January and is drilling. Two Eaglewood wells (30%, 30 Bcf and 100 Bcf prospects) are being prepared. Production is 700 boe/d. PEL 96 drilling slips from January to mid-February because Queensland rains delay the rig. Cadlao due diligence continues.
12 Jan 2010drilling spud● Neutral
The Driskill Land Co 1 well in the new Texana Bateman Lake JV, Louisiana, is about to spud, targeting 15-25 Bcf to 8,933 feet. Strike pays 17.5% of dry-hole cost (about US$153,000) to earn at least 12.6%. Up to 10 US wells are planned for 2010.
5 Jan 2010price query● Neutral
ASX queried a share price rise from 26.5 to 32.5 cents and higher volume. Strike said it knew of no undisclosed information, pointing to the December acreage and Cadlao announcements, and confirmed listing rule compliance.
16 Dec 2009asset acquisition disposition▲ GoodMajor
Strike secured an option to buy Blade Petroleum, holding the Philippines Cadlao oilfield (2P reserves 6.3m barrels, first oil targeted Q4 2010). Price is up to A$20m: 33⅓m shares at A$0.30 (A$10m) plus up to A$10m performance payments. Option expires 31 January 2010. New oil-weighted strategy.
15 Dec 2009asset acquisition disposition▲ GoodMajor
Strike won new permit CO2009-D (100%) and bought Magellan's interests in PEL 94 (35%), PEL 95 (50%) and the Aldinga oilfield PPL 210 (50%, 15 bbl/d) for A$1.3m. Southern Cooper acreage rises from 10,000 to 17,600 sq km; PEL 96 drilling still due January 2010.
4 Dec 2009admin correction● Neutral
The company formally changed its name from Strike Oil Limited to Strike Energy Limited, following shareholder approval at the 17 November 2009 AGM. It still trades under the code STX. Administrative only.
24 Nov 2009farm in farm out agreement▲ GoodMajor
Strike signed a second US Gulf Coast joint venture with Houston-based Texana Resources Partners, earning at least 12% in the first Louisiana well (December 2009). Production is back to 700 boe/d net. Eaglewood drilling resumes January/February 2010 (30%). Up to 10 US wells are possible in 2010.
5 Nov 2009investor presentation● Neutral
Investor briefing presentation. Shows 328.6m shares at A$0.24 (market cap A$78.8m), cash and investments A$16.0m, and debt A$6.0m. Four US wells by June 2010. Largely repeats known facts.
23 Oct 2009production update● Neutral
US production is being restored to full capacity after gas prices rebounded about 150% from the September low; Strike's share was 710 boe/d before the cutback. A rig is being secured for PEL 96, so drilling slips to January 2010 from late 2009. US drilling is planned for December.
30 Sept 2009annual report● Neutral
Audited FY2009 annual report. Confirms A$10.2m net profit, A$24.8m EBITDAX, A$13.3m cash and 17% gas reserve growth. It also notes the independently confirmed PEL 96 resource (7,000-19,000 PJ gas-in-place) and Baniyas potential of 9-47 million boe. Repeats the August results.
17 Sept 2009production update● Neutral
Rayburn and Mesquite output was cut back until about 25 September for maintenance, and might stay reduced, possibly for the quarter, to defer gas to higher futures prices (up to A$1.5m of revenue deferred). US drilling was set to restart in November, the bank loan had a repayments holiday to June 2010, and PEL 96 drilling was expected late November/early December.
1 Sept 2009investor presentation● Neutral
Good Oil Conference presentation. Shows 328.6m shares at A$0.27 (market cap A$88.6m), cash and investments A$15.7m, debt US$5.3m, and drilling from November 2009. Largely repeats known facts; the share price is up from A$0.185 in June.
31 Aug 2009annual report▲ GoodMajor
Unaudited FY2009 results: revenue A$41.2m, net profit A$10.2m, oil and gas revenue up 128% to A$36.4m, 60% gross margin, A$13.3m cash. A put option secures a minimum US$3.00/Mcf to June 2010. US drilling starts November 2009, PEL 96 drilling by year-end.
27 Aug 2009resource reserve update▲ GoodMajor
Independent review by MBA confirms PEL 96 prospective CSG resource: best estimate 3,712 PJ, high 9,281 PJ gross (Strike share 2,475-6,188 PJ). Drilling tenders are out, three wells planned Nov/Dec 2009 subject to approval. Key gas content and permeability are still untested.
17 Aug 2009investor presentation● Neutral
Presentation by the MD at the South Australia Future Energy Conference, centred on the Southern Cooper CSG project (Strike 66⅔%, operator) and the FuturGas coal-to-liquids project. Largely repeats known facts; the 8,000-20,000 PJ gross resource figure is the one already claimed.