Past year: ▼ 5%(9.70c – 12.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
3 Sept 2008investor presentation● Neutral
Presentation at the Good Oil Conference repeats known facts: net output 10.7 mmcf/d, FY09 revenue target A$50-55m, and Rayburn and Flint prospects. It adds cash of A$7.0m at 31 July and 1,000 bcf prospective Gulf Coast resource, about 30% net to Strike.
1 Sept 2008flow test result▲ GoodMajor
Gilbert Freeman 2 tested at 8.976 mmcf/d gas and 245 bpd condensate, lifting Rayburn output about 25%. Gross Gulf Coast production is now 46.5 mmcf/d and 1,175 bpd; Strike's net share is 10.7 mmcf/d and 270 bpd. Revenue forecast stays above A$4m a month. This resolves the Gilbert Freeman 2 thread.
26 Aug 2008drilling result▼ BadMajor
Logs at Hlavinka Gas Unit 1-1 show gas in multiple Wilcox sands, but interpreted as poorer quality than earlier Rayburn wells. Partners deferred choosing test zones and plugged the well for later re-entry. Commerciality is unproven. Gilbert Freeman 3 testing is due early September.
21 Aug 2008drilling progress report● Neutral
Hlavinka Gas Unit 1-1 reached its 12,200 ft target depth and is preparing wireline logs to assess gas shows in the Wilcox. Gilbert Freeman 2 is testing at substantial rates. Duncan 4, the ninth Rayburn well, follows next.
14 Aug 2008drilling progress report● Neutral
Gilbert Freeman 2 testing continues in line with expectations while the well cleans up. Hlavinka Gas Unit 1-1 has a liner set and is drilling at 8,230 ft, with the objective section 1-2 weeks away. Rayburn production targets are being maintained.
13 Aug 2008director officer appointment● Neutral
Tim Clifton joins the board as a non-executive director. He chaired Strike before its June 2004 listing, is a substantial shareholder, and has over 40 years of mining experience, including as managing director of Perilya.
7 Aug 2008well test result▲ Good
Gilbert Freeman 2 testing began 4 August, with early results comparable to other Rayburn wells. Stabilised flow rates are likely to be reported next month. Hlavinka Gas Unit 1-1 restored circulation and is drilling at 7,395 ft.
30 July 2008drilling progress report● Neutral
Duncan 3 continues at 10 mmcf/d and 230 bpd. Gilbert Freeman 2 facilities are installed, awaiting frac materials before testing. Hlavinka Gas Unit 1-1 made no progress at 7,214 ft because of lost circulation of drilling fluid.
23 July 2008flow test result▲ GoodMajor
Duncan 3 tested at 10.1 mmcf/d gas and 234 bpd condensate, adding to Rayburn output. Gross Gulf Coast production (Rayburn and Mesquite) is now 38 mmcf/d and 900 bpd; Strike's net share is 8.8 mmcf/d and 214 bpd. This resolves the Duncan 3 test thread.
17 July 2008drilling spud▲ Good
Hlavinka Gas Unit 1-1, the eighth Rayburn well, spudded 10 July, with 13 3/8 inch casing at 2,615 ft. It targets Wilcox and could extend the field boundary. Total depth of 12,200 ft is expected in 30-35 days. July revenue is on track for A$4m.
9 July 2008drilling progress report▲ Good
Gilbert Freeman 3 is cased and suspended, with testing expected within 60 days. The eighth well is due to spud within a week. Duncan 3 testing continues, and July revenue is forecast to exceed A$4m, assuming prices don't fall much.
2 July 2008drilling result▲ GoodMajor
Gilbert Freeman 3 reached 12,100 ft on 29 June with gas confirmed over several Upper and Middle Wilcox intervals, and will be cased for testing. Partners will drill an eighth Rayburn well, Hlavinka Gas Unit 1-1. Duncan 3 early test results are comparable to the other producing wells.
27 June 2008joint venture update● Neutral
Comet Ridge says its deal with Pine Brook Road closed on 26 June. The Rocky Mountain assets Strike sold are now held in the new Comet Ridge Resources, which starts Florence drilling this weekend. This completes the sale Strike announced on 10 June.
26 June 2008drilling progress report● Neutral
Gilbert Freeman 3 is drilling ahead at 9,795 ft, with 12,200 ft expected within a week. Duncan 3 testing starts this week. Rayburn production is steady at about 24 mmcf/d and 640 bpd.
25 June 2008regulatory community update● NeutralMajor
FuturGas is now framed as a coal-to-liquids project with 40MW of power, targeting 10,000 barrels a day from the 578 Mt Kingston lignite. Pre-feasibility is due by end of Q1 2009 and the bankable feasibility by end-2012, with about A$7.5m a year initial funding and ~A$50m later. Partners and grants are being sought.
18 June 2008drilling progress report● Neutral
Gilbert Freeman 3 has 9 5/8 inch casing set at 7,820 ft, with total depth of 12,200 ft expected in two to three weeks. Duncan 3 testing is due next week. Rayburn production holds near 24 mmcf/d and 660 bpd.
12 June 2008investor presentation● Neutral
A June company update repeating known points: Gulf Coast production, A$35-40m revenue forecast for 2008/09, the Rocky Mountains sale and the FuturGas coal-to-liquids project. Cash was A$7.6m and debt A$12.2m at 31 May. No new results.
11 June 2008drilling spud▲ Good
Gilbert Freeman 3, the seventh Rayburn well, spudded 6 June and has 13 3/8 inch casing set at 2,635 ft; target depth is 12,200 ft. Duncan 3 testing is due in about two weeks. Production is about 24 mmcf/d and 650 bpd; revenue is on forecast at A$3m a month.
10 June 2008asset acquisition disposition▲ GoodMajor
Strike lifts its Eaglewood Gulf Coast interest from 25% to 30% (Flint prospect 25% to 35%) for about US$0.9m of past costs, and sells its Rocky Mountains interests to Pine Ridge for US$2m plus ~US$0.5m reimbursement. This ends the Tow Creek/Bear River/Florence position.
4 June 2008flow test result▼ Bad
One shallow interval in Hlavinka Duncan 1R flowed a stabilised 44 thousand cubic feet of gas a day with no condensate, which the company called disappointing. Gilbert Freeman 3 was due to spud 7 June, and Rayburn produced about 22 mmcf/d and 620 bpd of condensate.
28 May 2008drilling result▲ GoodMajor
Gilbert Freeman 2 reached 12,200 ft two days early, with logs showing a high-quality pay section like nearby wells. It will be cased for testing. The rig moves to Gilbert Freeman 3, the seventh Rayburn well. Production holds near 24 mmcf/d.
21 May 2008drilling progress report● Neutral
Gilbert Freeman 2 has casing and a liner set and is at 9,000 ft, with the main Middle Wilcox target due in 1 to 2 weeks. Rayburn production continues near 24 mmcf/d and 600 bpd condensate.
13 May 2008flow test result▲ GoodMajor
Gilbert Freeman 1 tested at a stabilised 3.8 mmcf/d gas and 126 bpd condensate, lower than Duncan 1 and 2 but still a producer. Rayburn now makes about 24 mmcf/d and 600 bpd. Gilbert Freeman 2 has drilled to 7,900 ft.
7 May 2008investor presentation● Neutral
Managing director interview repeating known points: Duncan 2 flowing 10 mmcf/d, about 5 bcf expected per well, a reserve analysis in 2 to 3 months, and up to 8 Gulf Coast wells. Mid-2008 revenue target up to A$4m a month. No new results.
5 May 2008flow test result▲ GoodMajor
Duncan 2 ST tested at a stabilised 10 mmcf/d gas and 224 bpd condensate, matching Duncan 1 and roughly doubling Rayburn to about 20 mmcf/d. Strike's share is US$1.8m a month at current prices. Mid-year revenue target raised to A$3-4m a month.
2 May 2008debt financing▲ GoodMajor
Strike secured a US$11.7m five-year borrowing base facility with Commonwealth Bank, secured on Mesquite and Rayburn production. It funds up to eight more Gulf Coast wells by December 2008. Revenue is expected to reach about A$3m a month by end June.
30 Apr 2008farm in farm out completion▼ BadMajor
Freedom Natural Resources withdrew from the Tow Creek/Bear River farm-in, so Strike keeps its 37.5% and 33.75% interests rather than cutting to 10% and 6.25%. Florence drilling begins in early May with two wells, and Gilbert Freeman 2 is due to spud.
24 Apr 2008drilling result▲ GoodMajor
Duncan 3 reached 12,300 ft and logs show the main Middle Wilcox sand is gas bearing, as expected. It will be completed for testing and production. Duncan 1 continues at about 10 mmcf/d and 260 bpd. The managing director expects another well to be proposed immediately.
23 Apr 2008drilling result▼ Bad
Beach's weekly report re-released for Strike's interest: Coolangatta 1 had only minor oil shows and has been plugged and abandoned. Strike holds 15%. Together with Currumbin 1, both Cooper Basin wells in this program were unsuccessful.
23 Apr 2008regulatory community update● Neutral
Partner MEC Resources re-released Strike's Rivoli statement: the Defence gas study final report is submitted. Subject to a gas supply agreement, Defence approval is expected to be sought by June 2008, with first gas anticipated late 2009. Strike holds 44.5% of EP325.
