Past year: ▼ 5%(9.70c – 12.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
9 Nov 2007business combination● Neutral
Strike says Hybrid Energy SA, to be demerged in early 2008, has set up in Adelaide under Barry Ford, and reproduces a magazine article on FuturGas (578 Mt lignite). Demerger and entitlement terms are due this quarter. Largely repeats known plans.
7 Nov 2007drilling progress report● Neutral
Duncan 2 is drilling at 10,090 ft toward its 12,200 ft target, expected within a week. Duncan 1 Lower Wilcox testing continues, with interim results now expected in 20 to 30 days, slightly sooner than earlier guidance.
30 Oct 2007quarterly activities report● Neutral
Appendix 5B for the September quarter: cash fell from A$5.86m to A$4.07m, with exploration spending of A$2.4m. The A$10.05m entitlement issue closed in October, after quarter end. Next quarter's planned spend is A$6.4m, and WA-340P was relinquished.
26 Oct 2007quarterly activities report● Neutral
September quarter: Texas working-interest revenue fell 20% to A$1.42m on natural decline and the strong Australian dollar. Duncan 1 testing began. Peltier 11-12 has been shut in, and the Rivoli FEED study nears completion.
24 Oct 2007admin correction● Neutral
Routine cleansing notice under the Corporations Act confirming that the 46,737,000 entitlement issue shares can be on-sold. It carries no new information.
24 Oct 2007drilling spud▲ GoodMajor
Duncan 2, the first Rayburn development well, spudded on 22 October targeting Middle Wilcox gas to 12,200 ft, and was at 2,670 ft. Lower Wilcox testing at Duncan 1 is progressing, with interim results expected in 30-40 days.
24 Oct 2007capital raising announcement● Neutral
The final 16.9m shortfall shares were issued, completing the entitlement issue. It raised A$10.05m in total and lifts shares on issue to 327,158,430.
23 Oct 2007capital raising announcement● Neutral
29.8m entitlement shares were issued on 19 October, taking shares on issue to 310.2m. The remaining 16.9m shortfall shares are due on 24 October.
17 Oct 2007business combination● NeutralMajor
Strike plans to demerge its FuturGas lignite project (578 Mt JORC resource) into Hybrid Energy SA and list it on the ASX in the first half of 2008. Shareholders would get pro-rata shares and an IPO entitlement. Barry Ford is the new managing director, with terms due in the December quarter.
16 Oct 2007drilling progress report▲ Good
Duncan 1 production facilities are in place and testing has begun, expected to run 60-90 days, so no sustained flow rate will be available until it finishes. A rig is moving to Duncan 2 to spud the first development well.
16 Oct 2007security holder rights change● Neutral
Directors plan a pool of up to 2.7m employee options at 30c, expiring in three years and vesting over two years. Directors get none. Shareholder approval is sought at the coming AGM.
16 Oct 2007capital raising announcement● Neutral
The entitlement issue closed with 61% taken up: 28.3m shares at 21.5c, raising A$6.09m. The 18.4m-share shortfall is being placed by the directors, since the issue was not underwritten.
What it means for a shareholder
28.3m new shares at A$0.215 to raise about A$6.1m. That's 45% dilution: every existing holder's slice gets 45% smaller. If you held A$1,000 of shares (4,651 at the issue price), your slice goes from 0.0137% to 0.00747% of the company. To keep it you'd need 3,871 more shares - about A$832 at the issue price.
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3 Oct 2007drilling progress report● Neutral
Duncan 1 flow testing and the first development well are both on track to start this month. All directors say they intend to take up their entitlements in the issue closing 8 October.
1 Oct 2007annual report● Neutral
The 2007 annual report records a loss for the year, which the chairman attributes to mixed exploration results and cost overruns, especially in Colorado, with Flint's McGall 1 described as disappointing. It stays upbeat on Rayburn and the FuturGas project.
21 Sept 2007capital raising announcement● Neutral
Cover note lodging the entitlement information document sent to shareholders. It is an administrative filing with no new information beyond the 12 September announcement.
21 Sept 2007capital raising announcement● Neutral
Cover letter sending shareholders the entitlement issue invitation: 1 new share for every 6 at 21.5c, closing 8 October. It restates the terms and funding use announced on 12 September, with no new information.
19 Sept 2007drilling progress report● Neutral
Duncan 1 testing is now due in two to three weeks after rain and access-agreement delays, and will run 60-90 days with gas sold into the local pipeline. The first development well is planned by late October, with continuous production around year end.
12 Sept 2007capital raising announcement● NeutralMajor
Strike details its A$10m non-renounceable 1-for-6 entitlement issue: about 46.7m shares at 21.5c, a 14% discount, not underwritten. Proceeds fund part of the Rayburn drilling programme. Total shares would rise to about 327m. Record date 20 September, closing 8 October.
What it means for a shareholder
46.7m new shares at A$0.215 to raise about A$10.0m. That's 58% dilution: every existing holder's slice gets 58% smaller. If you held A$1,000 of shares (4,651 at the issue price), your slice goes from 0.0137% to 0.00576% of the company. To keep it you'd need 6,389 more shares - about A$1,374 at the issue price.
Create a free account to see this worked out for your own holding.
10 Sept 2007drilling result▼ BadMajor
The Coal View 31-4 sidetrack (37.5%) was temporarily abandoned after the drill string became irretrievably stuck above the primary target, following the rig failures. Oil shows in the Niobrara remain untested, and the partners are reassessing how to proceed.
5 Sept 2007drilling progress report▼ Bad
Duncan 1 testing preparations continued. The Coal View 31-4 sidetrack (37.5%) made no progress for the week because of rig mechanical problems and stayed at 5,602 ft, with planned total depth still 7,132 ft. No new results.
3 Sept 2007capital raising announcement▲ GoodMajor
The board approves a US$15m (net) Gulf Coast programme of six mostly development wells from October 2007, and plans an A$10m entitlement issue (details to follow). Funding also includes Mesquite cash flow, Rayburn revenue and a possible small debt facility. Targets revenue above US$20m in 2008/09.
3 Sept 2007investor presentation● Neutral
Presentation for the Good Oil Conference largely repeats known facts: Rayburn (22.8%, ~500 Bcf pre-drill target), a six-well US$15m Gulf Coast programme, FY07 revenue of A$8.6m, and Rivoli supplying 8 PJ to Defence. Names the Kingston coal project FuturGas, with a 578 Mt lignite resource.
29 Aug 2007drilling progress report● Neutral
The Coal View 31-4 sidetrack began on 25 August and was at 5,602 ft, with elevated gas readings in the shallowest Niobrara target. The Duncan 1 test programme is being costed and is expected to start early September.
22 Aug 2007drilling progress report● Neutral
Duncan 1 test preparations were slowed by heavy rain, though facility site, access and gas transport agreements are concluded and a gas sales contract is near. The Tow Creek rig is rigging up. No new results.
15 Aug 2007drilling progress report● Neutral
Duncan 1 mud was displaced with brine ahead of fraccing and testing, while gas sales negotiations continue. At Tow Creek the well was plugged and a rig is due for the 1,800 ft sidetrack. No new results.
8 Aug 2007drilling progress report● Neutral
The operator is reviewing a Rayburn development plan and designing a Duncan 1 test, to start within 30 days of gas sales agreements. The Coal View 31-4 sidetrack, targeting 200,000-500,000 barrels recoverable, is due to start. Florence seismic data processing has begun.
1 Aug 2007drilling progress report● Neutral
Duncan 1 testing slips to mid-to-late August while the well is connected to local facilities so test gas can be sold immediately. No new results.
25 July 2007drilling progress report● Neutral
The rig was released from Duncan 1 (22.8%) on 23 July after setting the 4½ in liner. Perforating, fracture stimulation and testing of the Lower then Middle Wilcox are planned from mid-August. No new results.
24 July 2007investor presentation● Neutral
In an interview, the MD says Duncan 1 is a discovery but it is too early to size it, and forecasts sales above A$10m in 2007/08. Tow Creek could reach 50-100 bbl/d. Largely repeats known facts.
20 July 2007quarterly activities report● Neutral
June quarter report: Duncan 1 shows Middle and Lower Wilcox gas pay, and annual Texas revenue rose to A$8.6m from A$3.6m. Quarterly revenue fell 14.5% to A$1.756m, with Mesquite gas down 22.6%. Peltier 11-12 is producing only 5-10 bbl/d, below expectations.
