1 May 2014production update● Neutral
Larger down-hole pumps were installed in Lesedi 1P and Selemo 1P and the wells flushed to total depth. Dewatering has restarted, with first gas anticipated in 2Q14.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
10 Apr 2014drilling result▲ Good
The three-well coring program was completed on 1 April 2014. Cores intersected well-developed coal, in line with pre-drill expectations, with 80 gas desorption tests under way and early Lower Morupule results described as encouraging. Data supports reserves certification.
25 Mar 2014production update▼ Bad
Both pods are approaching critical desorption pressure, with Lesedi closest, but dewatering is taking longer than expected because wells are more productive than estimated. This slips the earlier end-of-March first-gas estimate. Two core-holes are complete and the third began 22 March.
11 Mar 2014half year report▼ BadMajor
Half-year loss to 31 December 2013 was A$4.14m, driven by about A$2.9m impairment of Karoo West and Zimbabwe. Karoo West licences are being relinquished and Zimbabwe interests offered for sale, to focus on Lesedi. This reverses earlier plans for Zimbabwe drilling. A Mamba area application is lodged in Botswana.
28 Feb 2014other● Neutral
Notice that 7,197,130 shares will be released from voluntary escrow on 28 February 2014. Administrative notice with no new company information.
25 Feb 2014drilling spud▲ Good
The first of three 2014 core-holes was spudded on 21 February 2014 at Lesedi. The program feeds the aim of certifying Botswana's first 2P CBM reserves from the Lesedi project in mid-2014.
25 Feb 2014investor presentation● Neutral
Corporate presentation to the Queensland Exploration Council by the CFO. Gives market cap of about A$47m, 148m shares and A$13.5m cash (Dec 2013), with the current project described as fully funded. Visible text repeats known facts; the rest is truncated.
18 Feb 2014production update● Neutral
Both pods are dewatering with greater-than-expected water flows, so pump lift capacity was increased. First gas breakthrough is now estimated before the end of March 2014. The first core-hole is delayed slightly and expected to start shortly.
28 Jan 2014production update● Neutral
Both pods are still dewatering, with higher-than-expected water rates prompting pump upgrades. Core drilling is due to start in early February with contracts signed (DWD Drilling). Colm Cloonan replaces Don Langdon as CFO.
17 Jan 2014other● Neutral
Notice that 4,483,314 restricted shares will be released from escrow on 30 January 2014. Administrative notice with no new company information.
27 Dec 2013capital raising announcement▲ GoodMajor
The retail offer raised about A$4.8m, completing the A$13.4m raising at A$0.30. Valid applications covered 75% of the 16m shares offered (A$3.6m); underwriters or sub-underwriters took the roughly 4m-share (A$1.2m) shortfall. Shares issue 27 December, trading 30 December.
What it means for a shareholder
16.0m new shares at about A$0.300 to raise about A$4.8m. That's 36% dilution: every existing holder's slice gets 36% smaller. If you held A$1,000 of shares (3,333 at the issue price), your slice goes from 0.0117% to 0.00747% of the company. To keep it you'd need 1,864 more shares - about A$559 at the issue price.
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17 Dec 2013production update▲ Good
Selemo pod, dewatering since 17 November, is approaching the point where gas starts to release, with first significant gas flow expected in early 2014 if trends hold. Lesedi, dewatering since 5 December, shows early positive pressure trends. No gas rates given.
12 Dec 2013drilling scheduled▲ GoodMajor
The rig was released on 29 November. A three-well coring program is planned from late January 2014 near the Selemo and Lesedi pods, as a precursor to certifying Botswana's first CBM reserves, aimed for mid-2014. Selemo was completed as a single-lateral pod.
5 Dec 2013production update▲ Good
Production testing began at the Lesedi pod, with pumping to dewater the coal over coming weeks. Selemo testing continues, and the company expects measurable gas to start in the coming weeks. No rates given.
4 Dec 2013other● Neutral
Notice to option holders that options carry no entitlement offer rights; they must exercise before the 2 December record date to participate. Administrative notice with no new information.
4 Dec 2013capital raising announcement● Neutral
Retail entitlement offer booklet: 1 new share for every 4 held at A$0.30, raising about A$4.8m, open 4 to 19 December 2013 and fully underwritten. This is the final stage of the A$13.4m raising.
4 Dec 2013other● Neutral
Notice that holders with registered addresses outside the eligible jurisdictions cannot take part in the retail entitlement offer. Administrative notice, no new information.
29 Nov 2013capital raising announcement▲ GoodMajor
The A$5.7m placement (19m shares) and A$2.9m institutional entitlement component (about 9.6m shares) at A$0.30 are complete. The full A$13.4m raising is underwritten by Morgans and Integra, with directors Gilby, Mitchell and McIver sub-underwriting up to A$992,232, A$300,000 and A$30,000. Retail offer opens 4 December.
What it means for a shareholder
9.6m new shares at A$0.300 to raise about A$2.9m. That's 25% dilution: every existing holder's slice gets 25% smaller. If you held A$1,000 of shares (3,333 at the issue price), your slice goes from 0.0117% to 0.00872% of the company. To keep it you'd need 1,119 more shares - about A$336 at the issue price.
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29 Nov 2013drilling result▲ GoodMajor
Lesedi 1B reached 1,492 m measured depth, intersected Lesedi 1P and was drilled under budget, completing the 2013 pilot drilling program. Selemo pumping continues with steady water production; Lesedi testing to start soon. Drilling finished within the 4Q13 timeline.
29 Nov 2013investor presentation● Neutral
Amended version of the equity raising presentation dated 29 November. Only the legal disclaimer is visible, so what changed from the 27 November version cannot be seen.
27 Nov 2013other● Neutral
ASX circular to market participants restating the 1-for-4 accelerated entitlement offer at A$0.30 (up to about A$7.7m), with timetable and record date of 2 December 2013. Administrative notice with no new information.
27 Nov 2013capital raising announcement● NeutralMajor
Tlou launches an equity raising of up to about A$13.4m at A$0.30 a share: a A$5.7m placement plus a 1-for-4 entitlement offer of up to A$7.7m. Funds an expanded Karoo Central pilot and core hole program and working capital, confirming the funding need flagged at the AGM. Issue price is a 25% discount to the last price of A$0.40.
27 Nov 2013investor presentation● Neutral
Investor presentation supporting the A$13.4m, A$0.30 equity raising announced the same day. Text provided is only the legal disclaimer, so no new information is visible.
25 Nov 2013drilling progress report● Neutral
Lesedi 1B is drilling the in-seam horizontal section at 871 m, on pre-drill time and cost, with intersection of Lesedi 1P due later this week. Selemo dewatering continues with pressures still consistent with gassy coal; no gas or water rates given.
19 Nov 2013well test result▲ GoodMajor
Pumping of Selemo 1P began on 17 November, the start of production testing at Selemo 1A-R/1P. Early indications are described as positive and consistent with the gassy coals drilled, but no gas or water rates are given. Lesedi 1B drilling is underway.
13 Nov 2013drilling result▲ GoodMajor
Lesedi 1A intersected the Lesedi 1P vertical well at 1,427 m, through 788 m of good gassy coal, on pre-drill time and cost after design changes. Rig moves to Lesedi 1B, and Selemo production testing is about to start. This partly offsets the earlier Selemo problems.
6 Nov 2013investor presentation● Neutral
Chairman's and managing director's AGM addresses. Management aims to have Selemo 1A-R pumping water by mid-November and Lesedi wells done by December, and targets reserves booking in 1H14. It says it is exploring funding options, signalling further capital needs.
5 Nov 2013drilling progress report● Neutral
Lesedi 1A in-seam drilling is continuing through the target coal after 7 inch casing was cemented at 629 m. Selemo testing infrastructure is due to be finished by the weekend.
29 Oct 2013quarterly activities report▼ BadMajor
September quarter report: Selemo 1A-R intercepted Selemo 1P after 748 m of in-seam coal, while Selemo 1B was suspended at 969 m with pipe stuck. Because of delays, pilot drilling is now expected to finish 4Q13 with first gas in 1Q14, slipping from 4Q13. Zimbabwe drilling is deferred to early 2014.
28 Oct 2013drilling progress report● Neutral
Horizontal drilling restarted on Lesedi 1A after a break while specialist equipment was shipped from Australia. The well is at 153 m and will be drilled to intercept Lesedi 1P. Selemo 1A-R test site works are nearly complete.