Past year: ▼ 5%(9.70c – 12.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
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.
25 July 2008quarterly activities report▲ Good
June quarter revenue was A$9.22m, up 165%, and 2007/08 revenue was A$15.7m. The 2008/09 revenue target is raised to A$50-55m from A$35-40m, based only on wells already drilled and assuming US$10/mcf gas and US$120 oil. Rocky Mountains sold for US$2.5m.
25 July 2008quarterly activities report● Neutral
Appendix 5B for the June 2008 quarter: cash at quarter end A$8.4m, with A$7.5m drawn on a A$12.5m loan facility. Receipts were A$6.1m. Estimated spending next quarter is A$8.6m. The Colorado interest (39%) is shown as disposed.
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.
22 Apr 2008drilling progress report▼ Bad
Coolangatta 1 (Strike 15%, Beach operator) reached total depth of 1,372 m and logging is complete. The operator is preparing to plug and abandon it, so no oil discovery from this well.
17 Apr 2008quarterly activities report▲ Good
March quarter oil and gas revenue was A$3.48m, up 118% on the prior quarter, driven by Duncan 1. Rivoli's Defence study final report was submitted. Tow Creek/Bear River letter of intent noted, with Strike's stake falling to 10% and 6.25%. Report text is truncated.
16 Apr 2008drilling progress report● Neutral
Beach's weekly report re-released for Strike's Cooper Basin interest: Currumbin 1 plugged and abandoned with reservoirs water saturated, and Coolangatta 1 drilling the surface hole. The rest concerns Beach's other wells and adds nothing new for Strike.
16 Apr 2008drilling result▼ Bad
Currumbin 1 in the Cooper Basin (Strike 15%) has been plugged and abandoned, a dry hole. Coolangatta 1 spudded 15 April. At Rayburn, Duncan 1 still makes 10 mmcf/d, Duncan 2 ST and Gilbert Freeman 1 are testing, and Duncan 3 has a liner set at 9,568 ft.
11 Apr 2008joint venture update● Neutral
Hybrid Energy Australia, Strike's wholly owned subsidiary, opened its Adelaide headquarters and signed a research agreement with the University of Adelaide to test Kingston lignite for the FuturGas project. Feasibility study is now earmarked for completion in 2010.
