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.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
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.
Create a free account to see this worked out for your own holding.
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 2013agm notice● Neutral
All resolutions at the 6 November 2013 AGM passed, including the remuneration report, re-election of chairman Nathan Mitchell, auditor appointment and the 10% placement capacity. Administrative result with no new operational information.
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.
14 Oct 2013drilling progress report▼ Bad
The rig is at Lesedi 1A but on standby rate while specialist down-hole equipment arrives from Australia. The Lesedi wells are now expected to be completed by 4Q13. Recovery of equipment stuck in Selemo 1B is being planned, with a remedial completion after current drilling and testing.
4 Oct 2013annual report● Neutral
Printed-format 2013 annual report re-released, with the same chairman's letter and managing director's report as the 19 September version. It now says pilot drilling completion and first gas flows are expected in 4Q13. Financial detail is not visible in the truncated text.
30 Sept 2013drilling result▼ BadMajor
Selemo 1B was suspended at 969 m after loose rock repeatedly caved in and trapped the drill string, leaving the bottom hole assembly stuck. The company says drilling there may not resume in this campaign. The rig moves to the Lesedi pod, and Selemo 1A-R will be completed for testing.
19 Sept 2013annual report● Neutral
Annual report for the year to 30 June 2013 lodged, with a cover letter saying the printed version follows in early October. The visible chairman's letter repeats known plans: pilot drilling done 3Q13 and first gas 4Q13. Financial statements are not visible in the text provided.
18 Sept 2013drilling progress report▼ Bad
Selemo 1B is drilling within the target coal at 768 m. Tlou now expects the drilling program to finish in early November, about one month behind the original schedule, because of delays on the first well.
3 Sept 2013drilling progress report● Neutral
Drilling began on Selemo 1B, the second Selemo lateral, reaching 357 m measured depth. The drilling review led to changes: streamlined motor procedures, a modified drilling fluid system, and an alternate backup motor.
27 Aug 2013drilling progress report● Neutral
Selemo 1A-R has now intersected the Selemo 1P vertical well, resolving the earlier missed-intercept problem. The well is suspended pending completion and the rig moves to Selemo 1B. The review will add cost to 1A-R, but the rig and steering contractors agreed to adjust rates for later wells.
19 Aug 2013drilling progress report▼ Bad
Drilling of the Selemo 1A-R horizontal branch is paused because of persistent down-hole motor problems; a review is expected to finish by end of month. Good quality coal was found along the whole horizontal path. This extends the rig problems flagged on 16 August.
16 Aug 2013drilling progress report▼ Bad
Selemo 1A-R's horizontal section ran 1,475 m through good quality coal but missed the Selemo 1P vertical well on initial attempts, due to magnetic effects on survey tools. A new branch is being drilled. Delays are blamed on remoteness and rig equipment deficiencies; lost time is hoped to be recovered.
30 July 2013quarterly activities report● Neutral
June quarter report: top-hole drilling on all six pilot wells finished 29 June, and lateral drilling was due to start early July. Zimbabwe exploratory drilling is being planned for later in 2013. First gas is still targeted for 4Q13. No financial figures given.
26 July 2013drilling progress report● Neutral
Selemo 1A-R reached 716 m measured depth, landing in the target coal seam, with 7 inch casing set at 577 m. The ~750 m horizontal section is about to start, expected over the next week; the schedule is described as on track.
10 July 2013drilling progress report● Neutral
The lateral drilling phase has started: the Buffalo rig was accepted on contract on 9 July and began on Selemo 1A-R, with 9-5/8 inch casing run to 202 m. Operations are described as proceeding to program.