TMK Energy Ltd

TMK signed a drilling contract with Major Drilling for up to three wells but is committing to just one new well, LF-08, drilling from late September. Re-completions of LF-02, LF-03 and LF-06 start in September, narrowing the earlier plan of three new wells.

contract award

Steve Skinner, a Denver-based petroleum engineer with 25+ years' experience who invested in TMK's March 2026 placement, becomes Chief Operating Officer. He will focus on re-completing the seven pilot wells; pay is described as highly tied to TMK's success.

director officer appointment

TMK signed an MoU with Dashvaanjil Group, Mongolia's largest LPG importer, for a first gas-to-power plant of up to 1MW at the Pilot Well Project, fuelled by TMK gas topped up with Dashvaanjil LPG. Dashvaanjil funds the downstream engineering at its own cost, with first power targeted by end Q3 2026.

material agreement

March gas averaged 866 m3/day, up 48% on February, with a record 1,353 m3/day (~47,800 scfd) on 21 March before curtailment for safety changes. Output is back to ~23,000 scfd. Regulator MRPAM signed an MoU on gas-to-power and approved the 2026 budget, including three more wells.

production update

CEO Dougal Ferguson's contract is extended on an ongoing basis from 1 April 2026: $360,000 fixed pay, 3 months' notice. He and key staff get 4.5m performance rights vesting at 20-day VWAP of $0.25, $0.30 and $0.35, about 1.7% of issued capital.

director officer appointment

TMK raised $6.0m via a placement of 50m shares at $0.12, a 17.2% discount to the last close. Funds go to up to three more pilot wells and commercialisation. Directors add $80,000 subject to approval at the May AGM; Bridge Street gets 6m options at $0.275.

capital raising announcement

Gas hit a record ~1,000 m3 a day (35,000 scfd), with LF-07 supplying about 70% and producing over 25,000 scfd. The company says LF-07 has reached critical desorption, earlier than expected. Internal 2026 target is 100,000 scfd as a sign of commerciality.

production update

Record gas of over 900 m3 a day (31,800 scfd) on 6-7 March, with LF-07 now confirmed desorbing and up about 500% in a few months. February averaged ~583 m3 a day, slightly below January because of pressure tests. Aims to deliver first power to the grid in the second half of 2026.

production update

Daily gas passed 720 m3 (25,000 scfd), a new record, as LF-07 rose above 13,000 scfd. The company sees signs gas is starting to desorb at LF-07, an early positive for the long-awaited desorption point, though described as cautious optimism.

production update

TMK signed an MoU with Mongolia's Ministry of Energy to study coal seam gas as a fuel for national power, starting with a baseline study on peak-load power. Non-binding study; no funding or offtake is stated. Builds on the gas-to-power work under way.

material agreement

The 55-for-1 consolidation approved at the 31 October general meeting is complete, leaving 217,681,762 shares on issue. Normal trading resumes 18 November. Completes the capital reorganisation proposed in September.

security holder rights change

Appendix 3A.3 for a 55-for-1 share and option consolidation, subject to shareholder approval on 31 October 2025. Shares fall from about 11.9bn to 216m, with option exercise prices scaled up 55 times (e.g. 0.8c to 44c). Post-consolidation trading starts 7 November.

security holder rights change

ASX suspended TMK shares from 15 September 2025 for not lodging its periodic report by the due date. Normally reinstated the next trading day if the report is lodged. Coincides with a trading halt for a capital raising.

listing compliance notice

Binding commitments for a $3.5m oversubscribed placement of 1.75bn shares at $0.002, a 20% discount to the five-day VWAP of $0.0024. Directors take $150,000 (part of $250,000 board and management), subject to shareholder approval. Funds go to operations, partnering and exploration at Gurvantes.

capital raising announcement

LF-07 now produces over 100 m3/day of gas, among the best pilot wells, and total pilot output has doubled in two weeks. The company calls this not commercially significant yet, and expects record monthly gas soon. Earlier 5,000 m3/day Jens target remains far off.

production update

Strategic Alliance Agreement signed with Beijing consultancy J-Energy (founded by former Shell China team) for field development planning, technical support and China equipment sourcing. It earns a success fee, in cash or equity, if it introduces an investing partner. Advances the partner search.

material agreement

Drilling of LF-07, the seventh pilot production well, began 27 July 2025 on a fixed-cost turnkey contract with Major's TXD200 rig. It follows through on the planned 2025 pilot well and aims to speed reservoir depressurisation. LF-05 is described as remediated.

drilling spud

TMK is disposing of its 20% indirect interest in the Talisman Deeps offshore WA project, held through Skye Napoleon, for deferred consideration of $1m. Payable only within 90 days of commercial production starting. It removes future work-program obligations and completes exit from a non-core asset.

asset acquisition disposition

TMK raised about $2.25m via a placement of 750m shares at $0.003, a 7% discount to the five-day VWAP of $0.0032, issued under existing capacity around 24 April. Funds go to the LF-07 pilot well, 2025 exploration, feasibility studies and strategic partner efforts. Lead manager Prenzler gets 20m options at $0.005.

capital raising announcement

January set a record month: almost 8,000 m3 of gas, about 300% above December and 40% above the prior record. LF-02 produced over four times its historical rate. Material increase still expected late Q1 or early Q2 2025; the company says it is too early to predict.

production update

The three new wells began flaring gas around 10 January, so all six wells now flare and total field gas has more than doubled. Flows are 'pre desorption' and not commercial. Critical desorption is estimated for late Q1 or early Q2 2025.

production update

Binding MoU with German-backed Jens Energie to sell up to 0.6 TJ/day of pilot gas for power generation, for two years. It is conditional on TMK delivering 5,000 m3/day by 30 June 2025 and a detailed gas sales agreement. First early revenue pathway for the project.

material agreement

The three new wells (LF-04, -05, -06) started pumping on the weekend, so all six Lucky Fox pilot wells are now running. Pump speeds rise over 6-8 weeks to reach critical desorption, when gas rates should increase materially. No gas rates are given.

production update

Final pilot well LF-04 reached 503m with about 60m of net coal, as expected, completing the 2024 drilling campaign on time and on budget. The rig is leaving. Pumps are being fitted, with all six wells due on production by end of November.

drilling result

Trading resumes with $1.8m more raised at $0.002: a $1.5m placement of 750m shares (11% below the 15-day VWAP) plus about $0.3m for the shortfall from the entitlement offer, which had roughly 85% take-up. Company says it is now fully funded.

capital raising announcement

Entitlement and shortfall offers drew applications for 800.8m shares, raising $1.60m at $0.002 against the up to $1.9m sought. Shares and options are due to be issued on 1 November 2024. With the $1.34m placement, total is about $2.9m.

capital raising announcement

Drilling began on the first of up to three additional Lucky Fox pilot wells (LF-05), each expected to take seven to ten days. All three are expected to be finished in four to six weeks and put straight on production. Aim: reach critical desorption faster.

drilling spud

Raising about $3.24m at $0.002 per share: a $1.34m placement of 670m shares (33% discount) plus a 1-for-8 entitlement offer of up to about $1.9m. Each two shares get a free 0.8c option to April 2027. Funds the expanded 2024 program and partnering.

capital raising announcement

Drilling contract signed with Major Drilling, which drilled the 2023 pilot wells, for up to three more Lucky Fox wells at a fixed price about 28% below earlier costs. This finalises the July preferred-contractor choice; the rig mobilises within a week.

contract award

A preferred drilling contractor is chosen for the three-well program (Lucky Fox 4, 5, 6) on a fixed price about 28% below the 2023 well costs. The contract is still to be finalised within weeks, with drilling expected to follow shortly after in August.

contract award

Management reshuffle: CEO Brendan Stats steps down to run drilling and project delivery, with Dougal Ferguson interim CEO. John Warburton becomes chairman and Brett Lawrence a part-time executive director. A search for a full-time Managing Director is under way, expected to take several months.

director officer appointment

Mongolia's environment ministry approved the Gurvantes XXXV environmental impact assessment for five years, covering up to 45 production and 95 exploration wells. This clears the way for development of the 1.2 TCF (2C) resource, with more pilot wells expected to start drilling in August 2024.

regulatory community update

The share purchase plan raised $623,589 from applications for 155.9m shares at $0.004, well below the $1.5m cap. Each share gets a free $0.008 option to April 2027, subject to approval at the 30 May AGM. With the March placement, it funds the 2024 wells.

capital raising announcement

TMK raised $2.53m in a placement of 633m shares at $0.004, each with a free option at $0.008 to April 2027, to fund infill wells at Gurvantes. A $1.5m share purchase plan for existing holders is offered on the same terms. Largest holder Zantav took 25m shares.

capital raising announcement

Shut-in tests show reservoir pressure has fallen about 500kPa since July. A further 750-1,000kPa drop is needed to reach critical desorption, when material gas rates are expected. An independent review by Cipher Consulting says more time or wells will likely be needed. The 1.2 TCF estimate is unchanged.

well test result

TMK completed the Talon acquisition and now holds 100% of Gurvantes XXXV, issuing 1,092m shares and 546m listed options. It received $600,000 cash from Talon plus about $150,000 held in the acquired entities. This resolves the October agreement.

asset acquisition disposition

First gas rates reported: the highest daily rate was about 13,000 scfd on 30 November, with November output 130.5 mscf, roughly double the first month. TMK says rates are still low and not final. Both shareholder meetings approved the Talon deal.

production update

Talon and TMK signed a binding heads of agreement for TMK to buy Talon's 33% of Gurvantes XXXV for up to 1.1 billion TMK shares and 550m listed options. This would take TMK to full ownership; it is subject to a Talon shareholder vote expected late November 2023.

asset acquisition disposition

Terra-area well BHN23_002C intersected about 45m of net coal with moderate to high gas content, in the same formation as Nariin Sukhait about 100km west, so four more wells are added. The two earlier wells found thin coal with low gas. Lucky Fox-3 had pump problems from coal fines.

drilling result

TMK signed a two-year exploration cooperation agreement with Terra Energy, which operates the Baruun Noyon Uul coal mine in the project area. At least four cored wells and about 40 km of 2D seismic will be drilled, with drilling and seismic costs split 50/50.

material agreement

Sustained gas flow is now established from all three Lucky Fox wells, sufficient for continuous flaring, following the unsustained three-hour flare of 24 July. An initial gas rate is expected in several weeks; commercial significance still depends on the six-month test.

flow test result

Gas built up in the Lucky Fox-1 casing flowed to surface and was flared for about three hours on 24 July, the project's first gas to surface. The three wells produce about 500 barrels of water a day combined. TMK says the flow was unsustained.

flow test result

The six-month production test at Gurvantes XXXV has begun, with all three pilot wells pumping water at low, constrained rates in line with expectations. Gas breakthrough may come at any time after depressurisation; the project is not yet producing sustained gas.

production update

Lucky Fox-3 hit about 68m of gassy coal, the thickest of the three, completing the pilot drilling safely, on time and on budget. Pumps and surface facilities are due by early July, with first gas breakthrough expected one to two months after pumping starts.

drilling result

Lucky Fox-1 reached 375m total depth, on time and on budget, intersecting about 60m of coal in the upper seam production interval. The first pilot production well is done; the rig moves to Lucky Fox-2. This is a favourable early sign ahead of the production test.

drilling result

TMK raised about A$5.7m via placement of 393,079,300 shares at 1.45c, a 19.4% discount, with a free 1-for-2 option at 2.5c expiring April 2026. Funds expand the 2023 exploration drilling, planned from early Q3. Tsetsen Zantav agreed a six-month selling restriction. Resolves the earlier funding question.

capital raising announcement

Lucky Fox-1, the first of three pilot production wells at Gurvantes XXXV, spudded on 12 April 2023, on the April timetable. Talon still funds the first US$3.15m of about US$3.5m. A six-month production test follows all three wells.

drilling spud

Annual report for the six-month transitional period to 31 December 2022. It states Class A and C performance shares (600m and 400m) and related rights vested and converted, leaving 4,637.5m ordinary shares on issue. This contradicts earlier 'unvested' status. Mongolia pilot wells and Talon's US$3.15m funding are recapped.

annual report

TMK signed a cooperation and electricity offtake agreement with mining operator Mongol Alt (MAK). Subject to approvals, pilot well gas will fuel 1-10MW of power sold to MAK, which will also take the produced water and lend heavy machinery. This gives a path to early sales.

material agreement

TMK signed Major Drilling Group to drill three pilot production wells near SL-02, with drilling expected to start in April, later than the earlier 'mid Q1' guidance. Talon covers the first US$3.15m of about US$3.5m; TMK's share is about US$235,000. Wells then run about six months.

contract award

Talon formally exercised its option for 33% of Gurvantes, leaving TMK 67% and operator. Talon funds the first US$3.15m of the roughly US$3.5m pilot wells, and pays TMK a US$809,333 bonus triggered by the 1.2 TCF resource. Drilling is forecast mid to late Q1 2023.

farm in farm out completion

Talon exercised its option to take a 33% interest in the Gurvantes PSA after completing Stage 1 funding, leaving TMK with 67%. Talon also holds a first right of refusal over TMK's retained stake. It is committed to fund a further US$3.15m of exploration.

farm in farm out completion

NSAI certified a maiden Gurvantes contingent resource of 398 Bcf (1C), 1,214 Bcf (2C) and 2,361 Bcf (3C). The 1C and 2C are all in the upper seam; the lower seam has only 3C (417 Bcf) because permeability data is lacking.

resource reserve update

Final well Snow Leopard-5R finished at 510m with 69m net coal; preliminary testing of the upper seam shows the highest permeability in the project so far. All five wells are done and rigs demobilised. Maiden contingent resource targeted by 31 October; pilot well planning under way.

drilling result

Initial four-well program complete. Snow Leopard-3R reached 558m with 175m net gassy coal (up from 140m), the thickest in Mongolia per TMK; gas 7.5-12.5 m3/t. NSAI engaged for the maiden contingent resource (~6 weeks); Talon's 90-day election window runs from 26 September.

drilling result

Snow Leopard-3R hit about 80m of gassy lower coal (455-535m), giving ~140m total net coal, the thickest so far. SL-05 is drilling with ~37m of shallow, lower-gas coal. Maiden contingent resource now expected early Q4 2022; Talon yet to elect stage 2.

drilling result

TMK signed a binding, non-exclusive MOU with PetroChina subsidiary DATAMO to accelerate Gurvantes XXXV. DATAMO may move toward investing in TMK or the project on terms to be agreed; no funding yet, six-month term, company says no direct economic impact.

material agreement

June quarter report: three Gurvantes wells found thick, gassy coal, and the first-four-wells coal hurdle triggered conversion of 600m Class B performance shares into ordinary shares. Cash about A$3.4m, no debt; Talon has funded US$1.5m, stage 2 (US$3.15m) is its election.

quarterly activities report

Snow Leopard-3 upper seam permeability is about 15-20mD, and SL-2's final is 47mD. Upper coal at SL-3 revised up to ~60m from 47m. Poor hole conditions forced abandoning the wellbore at 348m; it was re-drilled on the same site from 8 July.

well test result

Snow Leopard-2 reached total depth of 540m with 91m net coal (70m upper, 21m lower seam at 457-478.5m). Methane averages ~97%. Rig moves about 3km west to Snow Leopard-3; company says focus is shifting to fast-tracking the pilot.

drilling result

Snow Leopard-2 upper coal seam shows flow capacity of 1,090 mD.m over 70m, which the company calls high permeability. This resolves the permeability question left open at SL-1, and TMK is starting to fast-track pilot production planning.

well test result

Snow Leopard-2 hit about 70m of gassy coal from 167m depth, with high preliminary gas content at shallow depth. Final SL-1 gas contents came in at 11.4-15.2 m3/t (average 13.2), above expectations; SL-1 flow capacity was only ~4.1 mD.m after test problems.

drilling result

Snow Leopard-1 finished at 675m with 60m net gassy coal (44.4m upper, 15.5m lower). Gas content is tracking the upper end of the 7.5-12.5 m3/t range, methane averages ~96%. Permeability test results still being analysed; rig moves to Snow Leopard-2.

drilling result

Snow Leopard-1 intersected about 44m of gassy coal between 406m and 461m. Preliminary desorption shows high gas content (7.5-12.5 m3/t) and saturation, a first positive result for the Gurvantes model; permeability not yet tested.

drilling result

Snow Leopard-1, the first of four Gurvantes XXXV wells, spudded 15 March 2022, targeting about 650m over four weeks. Three more holes follow over 3-4 months; maiden contingent resource targeted for 2H 2022. Talon's US$1.5m funds this stage.

drilling spud

Telmen acquisition completes: 1.6bn shares and 1.6bn performance shares issued, plus a 245m-share placement at 0.8c raising A$1.96m. Shares on issue reach 2.88bn. Cash is about A$3.8m. Brendan Stats becomes CEO, Brett Lawrence steps down as MD, Logan Robertson resigns. Talon funds the first US$1.5m of work.

asset acquisition disposition

Binding term sheet to buy 100% of Telmen Energy, holder of the Gurvantes XXXV coal seam gas project in Mongolia (5.96 TCF 2U prospective resource), for 1.6bn shares plus 1.6bn performance shares. A A$1.96m raise of 245m shares accompanies it. Needs due diligence and shareholder approval. It adds a second asset beside Napoleon.

asset acquisition disposition

ERCE certifies Napoleon's main 197T target at a mean 1,528 Bcf gas and 66m barrels condensate (gross, unrisked), with a 24% chance of success. This ends the long wait for the estimate. Next: drilling permit, convert to a direct 20% interest, and farm out the 80% to fund a A$41.1m well.

resource reserve update

Tamaska acquires a 20% interest in the offshore Carnarvon Basin Talisman Deeps project (Napoleon prospect) for 45m shares plus 45m performance shares, no cash. This ends the search for a new project after Parta. Preliminary well cost is A$45m, A$9m its share; it expects about A$250k to reach drill-ready status.

asset acquisition disposition

Tamaska will not proceed with the Parta farm-in, ending its path to a 50% interest in the Romanian licence. It says approvals delayed the seismic and the earn-in period expired. Cash is A$2.7m and it is reviewing other projects.

farm in farm out completion

Partner ADX says Tamaska's Parta Energy told it on 7 September it will not proceed with the farm-in, after refusing a cash call. ADX says it was surprised, rejects Tamaska's legal basis, reserves its rights and cites US$1.3m outstanding.

joint venture update

Tamaska placed 85 million shares at 0.6 cents to raise $510,000 through Peloton Capital, plus 20 million options at 0.8 cents expiring 30 June 2021 for Peloton. Funds go to Parta drilling-target work and working capital; 3D seismic now due Q1 2020.

capital raising announcement

Joseph Graham (Executive Director, petroleum engineer) and Timothy Wise (Non-Executive) joined the board on 4 November 2019, and Alexander Parks resigned. This follows the Parta deal; the board is now four directors including Brett Lawrence and Logan Robertson.

director officer appointment

Rights issue closed having raised A$1,394,428, above the $1.2m minimum. Shortfall of 12,595,404 shares ($75,572) can be placed by directors within three months. Shares issue 31 October 2019.

capital raising announcement

Tamaska plans to raise up to about $1.47m through a 1-for-2 rights offer at 0.6 cents a share, with a $1.2m minimum and no underwriting. Money funds the Parta work program and working capital. Up to 245m new shares would lift the total to 805m.

capital raising announcement

Tamaska agrees to buy 100% of Parta Energy, which can earn 50% of the 1,155 km2 Parta licence in onshore Romania by paying US$1.5m (US$200,000 paid) toward about 100 km2 of 3D seismic. ADX Energy operates. Joseph Graham and Tim Wise to join the board and Alexander Parks to resign. This is the long-sought new project.

farm in farm out agreement

Brett Lawrence, a Non-Executive Director since February 2015 with 14 years' oil and gas experience, becomes Managing Director. Alexander Parks stays on as Non-Executive Director. Director fees are unchanged: $60,000 a year executive, $6,000 non-executive.

director officer appointment

Notice that Calima Energy made an off-market takeover offer on 2 May 2018 for TMK Montney, the Canadian Montney business Tamaska demerged in 2015: 2.1 Calima shares per TMK Montney share, or 0.21 per original Tamaska share. Its directors recommend acceptance. Affects holders of the demerged shares, not Tamaska itself.

other

September quarter: cash $2.243m. Oleum Operating acquired 76.7% of West Klondike and operatorship after the failed Lario completion, and began work on 18 October to acid-wash the Lario oil zone. Fusselman output dropped considerably, with abandonment possible if profitable production cannot be restored.

quarterly activities report

Logan Robertson joins as Non-Executive Director from Hoperidge Capital, the Jones family office and one of Tamaska's largest shareholders. Justin Norris resigned, and Brett Lawrence moved to non-executive. This brings a major holder's representative onto the board, replacing the Havoc-linked Norris.

director officer appointment

The 474m-share shortfall is placed, so the full $2.142m was raised at 0.2c before costs, giving 1.785bn shares. A further 175m shares at 0.2c ($350,000) will follow, taking shares to 1.96bn. Unlisted options now stated at 0.92c.

capital raising announcement

The demerger of the Canadian assets is complete. Holders on the 8 October record date received one TMK Montney share per 10 Tamaska shares. Tamaska no longer holds the Montney project it built up since 2014. Final ATO ruling expected about 4 November.

asset acquisition disposition

Prospectus lodged for a renounceable entitlement issue of 3 new shares for every 2 held at 0.2c, raising up to $2,142,000 before costs. Offer closes 10 November. This is the rights issue flagged with the demerger.

capital raising announcement

Tamaska plans to demerge its 40% Montney project into unlisted TMK Montney, giving holders 1 share per 10 held (A$4.86m book value, 0.68c per share), subject to shareholder and ATO approval. A rights issue of up to $2.14m at 0.2c, 3 for 2, is planned afterwards.

asset acquisition disposition

June quarter: cash fell to $0.8m. Montney holding is 20,626 net acres for about A$3.4m. West Klondike was shut in on 15 June due to water encroachment, with a shallower gas zone to be tried in August. Fusselman is about 20 bopd gross.

quarterly activities report

Brett Lawrence joins as part-time executive director on 1 February 2015. Chairman Mitchell and Freeman resign, and the Managing Director takes a 50% pay cut. Costs fall about 45%, citing the oil price. Cash was about $2m at 31 December 2014, down from $4.8m.

director officer appointment

Tamaska buys about 3,000 net acres of Montney play in British Columbia for A$262,000, plus a 1% royalty. It plans more acreage purchases over six months. This is the new lead project the rights issue was raised to find.

asset acquisition disposition

West Klondike began producing on 2 September at about 1.4 MMcf/d from the Lower Nod Blan, with output to be raised slowly. Tamaska holds 11.4%. This is first production from the 2012 discovery and resolves long delays.

production update

The last 100.6m shortfall shares were placed at 1 cent for about $1m, completing the $6.4m raise before costs. Convertible notes and loans are repaid, so Tamaska is debt free with about $4.8m cash. Shares on issue are about 704m.

capital raising announcement

The entitlement offer closed with shareholders taking up only 39,436,406 shares ($394,364), leaving a shortfall of 600,166,085 shares. Major holders Burton and Morgan say they are willing to fund at least the prospectus amount via the shortfall placement.

capital raising announcement

Prospectus for a 10-for-1 renounceable entitlement issue at 1 cent, raising up to $6,396,024.90, partly underwritten. Funds would repay $1.23m of debt and creditors and fund a new project. Shares would rise from about 64m to 703.6m. Detail is in the next notice.

capital raising announcement

March quarter: the CPO sale of Alberta acreage is now unlikely, so Tamaska is seeking other buyers. Fusselman fell to about 15 bopd, then was squeezed in late April. West Klondike construction is under way, with interest raised to 11.4%. Cash $146,000.

quarterly activities report

The Rend Lake Lawrence Farms #1 well reached 6,400ft but did not intersect the target dolomite reservoir and found no commercially significant hydrocarbons. It is being abandoned. This ends the main hope for the 20% interest, bought for A$320,000.

drilling result

The Lawrence Farms #1 well at Rend Lake spudded 22 November, targeting 6,500ft over about 30 days. Cost estimate rose to about US$1.5m; the amended carry now covers the first US$1m. Target is 67.5 MMbbl recoverable (13.5 net to Tamaska) on success.

drilling spud

The sale of Tamaska's 3.2% carried Rimbey interest to Black Swan completed, bringing in net C$649,630 (about A$662,000) before tax. The larger CPO sale of about A$3.6m remains unsigned and depends on CPO funding; a Canadian agent is ready if CPO fails.

asset acquisition disposition

Tamaska restructured shareholder loans into two A$300,000 convertible notes, convertible at 0.05 cents per share subject to shareholder approval, with 8% interest if repaid after 3 years. The notes are held by entities related to chairman Charles Morgan and major shareholder Craig Burton. The Black Swan sale completes 30 Sept; CPO funding is still unresolved. CEO Parks gets 300m options.

debt financing

Tamaska bought a 20% interest in the Rend Lake oil prospect in Illinois from Jupiter Oil and Gas for A$320,000, free-carried through the first well, to be drilled by operator Anschutz by 31 Dec 2013. Potential recoverable is 67.5m barrels. The seller is partly owned by chairman Charles Morgan and major shareholder Craig Burton.

asset acquisition disposition

Tamaska signed a letter of intent to sell its 3.2% carried Rimbey interest to Black Swan, to close in two to three weeks. This is carved out of the CPO sale, which stays at A$3.6m, with CPO still securing funds and given more time. No price was stated for the Black Swan sale.

asset acquisition disposition

CPO missed the 8 July deposit deadline for the Duvernay and Rock Creek sale. Tamaska will keep supporting the CPO and Mako process for now but will also begin marketing the assets to other buyers. This undercuts the sale expected to bring in about A$3.6m.

asset acquisition disposition

CPO asked for more time on the Duvernay and Rock Creek sale; Tamaska agreed if a 10% deposit is paid by 8 July. Delay led Tamaska to arrange a A$200,000 loan from two major shareholders to cover working capital until the sale completes or other funding is found.

debt financing

West Klondike's Wilbert Sons #1 flowed over 2 mmcf of gas a day from the Lower Nod Blan. The well is suspended until facilities and pipeline are installed, taking 4-6 months. This answers the flow-test thread; it was issued by partner Grand Gulf.

flow test result

Tamaska signed a term sheet to sell all its remaining Alberta Duvernay (8%) and Rock Creek (16%) interests and its Black Swan carried interests to Canadian Pan Ocean for about A$3.6m. Completion is subject to a formal agreement in April. Total Alberta proceeds would exceed $5.5m against a cost of about $1.3m.

asset acquisition disposition

The Texas Fusselman well reached 9,883 ft and found pay; Tamaska has earned its 12.5%. Gross potential for two wells is 280,000 to 320,000 barrels, below the 350,000 to 450,000 earlier cited. Production is due within 15 days.

drilling result

The Clayton Johnson #3F Fusselman well in Borden County, Texas has spud and is drilling at 2,240 ft toward 9,900 ft. Tamaska earns 12.5% after casing point for about $200,000. Gross potential is 350,000 to 450,000 barrels.

drilling spud

Logs confirm West Klondike as a discovery: 4 ft of net pay in the Lario, 6 ft in the U Nod Blan and 35 ft in the L Nod Blan. Casing is being run for testing; reserve ranges are to follow. Tamaska holds 10.2%.

drilling result

West Klondike well, Wilberts Sons LLC #1, spudded and is drilling at 925 ft. Tamaska holds 10.2% and pays about US$460,000 to reach 10,900 ft. This ends the delays that pushed the spud back through 2012.

drilling spud

Black Swan spudded the first Duvernay earn-in well on the Rimbey lands, a vertical test to 3,300 metres, taking about 35 days. Tamaska holds a 3.2% interest in the well and pays nothing. This delivers the carried well promised in the January sale.

drilling spud

Partner Mako says the C$20m sale of 80% of 30 sections has closed. The buyer must fund a vertical Duvernay well by 31 December 2012. This completes the December letter of intent that brings Tamaska about C$1.6m.

farm in farm out completion

Tamaska and its partners completed a second sale, of Duvernay rights under 8 remote sections, price confidential, and bought 4.5 adjoining sections cheaply. The joint venture keeps 103 Duvernay and 111 Rock Creek sections; proceeds go to 2012 activities.

asset acquisition disposition

Tamaska and its Alberta partners signed a letter of intent for a Canadian company to buy 80% of 30 sections for C$20m cash (Tamaska's share about C$1.6m), with the partners carried through the first two Duvernay wells. This is the first deal from the Macquarie sale process.

farm in farm out agreement

Logs show the Lyons Point well is not commercial and partners will plug and abandon it. Kilgore's 10% share was a paid US$923,000 dry-hole cost. This resolves the well thread negatively, leaving West Klondike and the Alberta sale as the main hopes.

drilling result

Kilgore confirms Macquarie-Tristone has issued the memorandum formally starting the sale/farmout of its Alberta assets (16% Rock Creek, 8% Duvernay), with bids expected late October. Advances the Macquarie thread from appointment to a live process.

joint venture update

The Pruittet et al #1 well at Lyons Point spudded 13 September 2011 and was at 1,248 ft. Target depth is 16,300 ft, about 45 days. Kilgore holds 10% WI. Resolves the long-awaited spud.

drilling spud

Kilgore buys a further 5.2% of West Klondike for about $40,000 of back costs, lifting its interest to 10.2%, at about US$360,000 dry-hole cost. Well due October. Company describes a strategy of testing exploration prospects alongside Canadian farmout.

farm in farm out agreement

Kilgore swaps 5% of Lyons Point to Grand Gulf for 5% of the West Klondike prospect in Louisiana, keeping 10% of Lyons Point and receiving about $424,000 of prepaid drilling costs. West Klondike targets 2 MMBL and 6 BCF, spud expected October.

farm in farm out agreement

Kilgore confirms Macquarie is advising on a possible farmout or sale of its Duvernay (8%) and Rock Creek (16%) rights, which advances the Duvernay farmout thread. Joint venture added 9 sections; total fairway now 141.53 gross sections (90,579 acres).

joint venture update

Warren Energy acquisition completed for 2.2bn shares, giving 16% of Rock Creek and 8% of Duvernay Shale in Alberta; $1.5m placement at $0.001 secured. Anthony Short and David Ballantyne resign; Charles Morgan and Brett Mitchell join the board. About $1m acreage cost is repayable from the next raising.

farm in farm out completion

Kilgore agrees to buy Warren Energy, holding a 16% interest in the Rock Creek tight oil play in Alberta, and to place up to 1.5bn shares at $0.001 ($1.5m) to a new investor syndicate that will lead strategy. A change of direction from its Gulf Coast focus.

business combination

Kilgore agrees to earn a 15% interest in the Lyons Point prospect in Louisiana, operated by Clayton Williams Energy, by paying 20% of costs. Target is 60 BCF gas and 3 MMBC; initial dry-hole share about US$1.14m. Spud expected late August 2011.

farm in farm out agreement

Rights issue closed with applications for 1,630,344,344 shares, raising $1.63m, leaving a shortfall of 464,060,680 shares. The company says applications well exceed the shortfall and expects to place it, plus the 78m placement, shortly.

capital raising announcement

Kilgore plans a renounceable 4-for-1 rights issue at $0.001 a share, raising almost $2.1m if fully taken up, plus a 78m-share placement for $78,000. Funds are for debt and working capital. Galveston 307 restarted on 1 November, at 6.7 mmcf/d combined.

capital raising announcement

First gas from Galveston 307 began after quarter end on a tight choke, aiming for the 10,000 Mcf/d flow-test rate (450 net). The Clarence Moreton acquisition will not proceed after shareholders defeated the resolution on 14 May 2010; new projects are being evaluated.

quarterly activities report

Kilgore agrees to buy 51% of Clarence Moreton Resources, holder of three NSW permits (about 2,050 km2), for 175m shares and 175m $0.05 options, with an option on the other 49%. Company-estimated gas in place is 7.3 TCF. A raise of at least $2.0m is planned. A move beyond its Gulf Coast focus.

asset acquisition disposition

Kilgore plans a three-stage $4.1m raise at $0.01 per share: a $1.108m 1-for-1 rights issue, a $2.5m placement of 250m shares, and a $0.55m placement of 275m options at $0.002. Funds go to GAL307 facilities, debt retirement, acquisitions and working capital.

capital raising announcement

Kilgore says its six discoveries are being tied in or enhanced, targeting about 930 Mcfe/d net once infrastructure is done. Offshore GAL307 (450 Mcfe/d net) is now late September/October; Stary plug-back is 330 Mcfe/d; UpMach 154 Mcfe/d. Sale talks on GAL307 with Odin have begun.

production update

Sandpiper will be completed as a discovery, finishing the prospectus drilling programme plus Egret. Of 11 wells, six are discoveries (Stary, UpMach, Alford, Snipe, Egret, Sandpiper). An updated reserve statement is promised.

drilling result

Egret will be completed as a discovery well, and the rig has moved forward to Sandpiper. Snipe has been cased. Production from the three wells is expected early Q3 2009 from a common platform, with Odin earning 50% of Kilgore's 11.25% interest.

drilling result

Odin Energy has signed a memorandum of understanding to farm into Kilgore's Texas state waters projects (Snipe, Egret, Sandpiper). Odin advanced A$2.0m secured; A$1.2m can convert to 50% of Kilgore's interest, and A$0.8m accrues 12% interest, repayable from UpMach income. This is Kilgore's first debt.

farm in farm out agreement

Snipe will be completed as a discovery with gross proven reserves of about 4 BCF (11.25% post-completion interest). Egret is now drilling. Kilgore has begun talks with parties to farm into its Texas state waters projects. Production is expected early in Q3 2009.

drilling result

Skimmer is a dry hole, plugged and abandoned. Vacek #1 on Boettcher reached 16,000 ft with gas shows but structurally low, and is temporarily abandoned. Snipe began drilling on 7 February. UpMack, in completion, tested 1.0 MMCF/d; Stary awaits a pipeline, with production now late March.

drilling result

Skimmer well (16.67% interest, operator Black Pool Energy, 8,220 ft, Texas state waters) began drilling on 20 January, with total depth in about 15 days. Prospective reserves are 13.5 BCF gross (1.35 BCF net). Snipe and Sandpiper follow with the same rig.

drilling spud

Proven gross reserves are now about 4.5 Bcfe, passing the 4 Bcfe trigger for conversion of Class C performance shares into 7 million ordinary shares. Further increases are expected when Stary and UpMach start producing.

resource reserve update

Alford #1, Kilgore's first producing well, is flowing at 200 mcf per day, forecast at US$19,500 a month net. The company projects about US$235,000 a month by end of Q1 2009 once Stary and UpMach come on. Boettcher is drilling at 5,000 ft.

production update

An independent engineer's report on the Stary discovery (operator 7L's) puts proven reserves above 2 Bcfe, triggering conversion of Class B performance shares into 7 million ordinary shares. This follows the Class A conversion of 7m shares at listing.

resource reserve update

The DM Rush #1 well at UpMack (25% interest) is declared the third discovery, after Alford and Stary, with pay confirmed in two upper horizons. Both appear to meet or exceed base-case reserves. An independent review is due within 45 days of total depth, and production is likely in Q1 2009.

drilling result

Stary #1 will be completed as a producer after wireline tests confirmed 118 ft of net pay. Initial 1P reserves are 4.5 BCF gas and 203,000 barrels of oil and condensate (1.27 BCF and 57,000 barrels net). Production is likely around 1 January 2009.

drilling result

The Cedar Creek Smith et al #1 well (50% interest) reached 6,800 ft and was plugged and abandoned: the targets had good porosity but held no hydrocarbons. A follow-up well is planned for 2009. UpMack and Stary report major shows.

drilling result

The Vermilion 141 offshore Louisiana well (15% interest) reached total depth with gas shows that were judged uneconomic. It was plugged and abandoned, the company's first dry hole after Joshua.

drilling result

Alford #1 reached 5,250 ft and will be completed as a producer after a positive formation test at 4,735-4,740 ft. Testing is due about 17 September. Joshua #1 was plugged and abandoned after only thin pay on top of moveable water.

drilling result

Kilgore Oil and Gas (ASX: KOG) lodged its prospectus on 26 May 2008 seeking to raise up to $10 million by issuing 50 million shares at $0.20 each, ahead of an ASX listing. The offer is described as speculative; the opening text is partly unreadable.

capital raising announcement