Warrego Energy Ltd

Warrego is removed from the ASX Official List at close of trading on 9 March 2023, after Hancock compulsorily acquired the remaining shares. This ends the listed company; holders are paid $0.36 per share under the bid terms.

registration revoked

Hancock's offer closed on 24 February with a relevant interest of 95.63% in Warrego. Hancock will compulsorily acquire the rest at $0.36, with trading suspended about five business days after the notice and the process taking roughly 4-6 weeks. Crosses the 90% threshold.

business combination

Strike closes its takeover bid for Warrego with about 30.4% (377m shares) and will accept Hancock's $0.36 cash offer, expecting $136m in proceeds. It stays 50% partner with Hancock in EP469 and West Erregulla. Strike's bid is effectively ended.

business combination

With Hancock holding about 52.33%, Warrego appoints three Hancock nominees: Ian Plimer as Non-Executive Chairman, plus Gerhardus Veldsman and Stuart Johnston as directors. Control of the board shifts to Hancock after the takeover contest.

director officer appointment

Hancock says Strike will accept its $0.36 cash offer for all 322.6m shares it holds or controls (25.98%), lifting Hancock above 78% from 52.33%. Hancock warns it may seek delisting, certainly so at 90%. Strike's scrip bid effectively ends in defeat; the Strike acceptance is as reported by Hancock.

business combination

Hancock's 40% condition is met and it holds more than 50% of Warrego, so every acceptor now gets $0.36 cash, paid within seven business days. The offer is extended automatically to 24 February. Hancock becomes the controlling shareholder, the key turning point in the contest.

business combination

Mineral Resources confirms about 234 million Warrego shares, a 19.17% strategic stake. It does not intend to bid and thinks Perth Basin gas asset prices are now over-inflated. This leaves a large holder not obviously accepting either offer.

business combination

Strike waives its last condition, so its 1-for-1 scrip offer is now free of defeating conditions. Strike and associates hold 20.57% of Warrego. Both rival bids are now unconditional.

business combination

Strike's 1-for-1 scrip offer for Warrego shares it does not already own formally opens, with bidder's statements and acceptance forms sent to shareholders. This is the 23 Dec bid now open, alongside Hancock's cash offer.

business combination

Hancock says it will pay $0.36 cash per share, up from $0.28, if it reaches 40% acceptances, and that it now holds over 25%. It says a majority of Warrego's board recommends its offer. It also warns that CGT rollover relief may not be available on Strike's scrip.

business combination

Warrego notes Hancock's conditional rise to $0.36 at 40% acceptances; Hancock has 25.92% so far and needs a further 14.08%. It also notes a roughly 15% special crossing on ASX at $0.35, with the buyer unknown. Board recommendation remains Hancock.

business combination

Strike says Chairman Greg Columbus alone recommends rejecting Hancock and accepting Strike's offer, while the board majority backs Hancock (3:1). Strike puts its offer's implied value at $0.32, a 14.3% premium to Hancock's $0.28, based on the 29 Dec Strike price.

business combination

Warrego issues its Target's Statement on Hancock's offer, covering both bids. The visible text does not give the board's recommendation; Strike's later statement describes it as a split recommendation, 3:1, in favour of Hancock.

business combination

Hancock waives its conditions and declares its $0.28 cash offer unconditional. Accepting shareholders are paid within 10 business days. This resolves the earlier open conditions (pre-emptive rights, no prescribed occurrences), and the offer now cannot lapse on them.

business combination

Strike, via subsidiary Strike West, lodges its formal bidder's statement for a scrip offer of 1 Strike share per Warrego share, for shares it does not already own. Opening dates are still blank in the visible text. This turns the 19 Dec proposal into a formal rival bid.

business combination

Hancock says shareholders holding 15.84% of Warrego have stated they will accept its offer if it goes unconditional within two trading days, and they confirmed this after Strike's scrip proposal emerged. Hancock will respond by 23 Dec. Holders are described as seeking cash soon.

business combination

Warrego notes Strike's plan to bid 1 new Strike share per Warrego share for the shares it does not already own, competing with Hancock's $0.28 cash. The board will weigh both; shareholders should take no action until the Target's Statement, due by 29 Dec.

business combination

Strike, as operator, tables a two-well exploration plan for late 2023/early 2024 on EP469, targeting Southwest Erregulla (272 PJ gross) and Erregulla Deep (278 PJ gross) best-estimate prospective resource. These are unrisked, undiscovered volumes, with discovery chances of 54% and 42%.

resource reserve update

Beach won't match, so Warrego's board withdraws its Beach recommendation and unanimously recommends Hancock's $0.28 offer, absent a superior proposal. It open until 31 Jan 2023, with no minimum acceptance. Holders may wish to delay accepting; Target's Statement to follow.

business combination

Beach decides not to match Hancock's $0.28 offer, ending its bid for Warrego. It says the contest reinforces the value of its own Perth Basin acreage and it plans more exploration spending there.

business combination

Strike says it has agreed share swaps with Warrego holders, 1:1 Strike for Warrego shares, lifting its stake to about 19.9% and making it the largest holder. This lifts its look-through EP469 interest to about 60%. Its board has formed no intention on a transaction.

business combination

Warrego's board deems Hancock's $0.28 offer superior to Beach's $0.25 cash counterproposal and opens a second 5-business-day matching period for Beach, ending 12 Dec. The board still recommends Beach for now.

business combination

Warrego confirms Beach's counterproposal: cash raised from $0.20 to $0.25 per share, plus any Spanish sale proceeds, on otherwise the same terms. The board will consider it; shareholders should take no action.

business combination

Beach says it lodged a counterproposal lifting its cash offer from $0.20 to $0.25 per Warrego share, plus any Spanish asset sale proceeds. It says this beats Hancock's $0.23 offer. Other scheme terms are unchanged.

business combination

Hancock raises its takeover offer from $0.23 to $0.28 per Warrego share, other terms unchanged. That tops Beach's $0.25 counterproposal. The board will consider it; shareholders should take no action.

business combination

Warrego notes Hancock's off-market takeover offer at $0.23 per share, above Beach's $0.20 scheme. The board is assessing whether it is a 'Superior Proposal'; Beach has a 5-business-day matching right. Board still backs Beach; shareholders told to take no action.

business combination

Warrego's board judges Hancock's $0.23 offer a Superior Proposal to Beach's $0.20 scheme and starts Beach's 5-business-day matching period, expiring 8 Dec. It still recommends Beach for now; shareholders should take no action.

business combination

Hancock Energy (PB) Pty Ltd lodges its bidder's statement for an off-market takeover bid for all Warrego shares. The visible text is a cover letter and acceptance form; price not stated here (the 1 Dec release says $0.23). A new bidder appears alongside Beach and Strike.

business combination

Strike says its proposal is superior to Beach's, implying A$0.217 per share (8.5% above Beach's) on 14 Nov prices, and says its board is considering options. It also says it may re-sequence development if no merger proceeds. Its offer remains non-binding.

business combination

Warrego signs a Scheme Implementation Deed with Beach: $0.20 cash per share (36% premium to 1-month VWAP) plus any Spanish asset sale proceeds within 12 months. Board unanimously recommends it, absent a superior proposal. Scheme booklet expected January 2023; break fees apply.

business combination

Warrego received a rival non-binding proposal from Beach Energy: $0.20 cash per share plus net proceeds if the Spanish assets sell within 12 months of implementation. Due diligence granted; no certainty of a deal. It competes with Strike's scrip proposal.

business combination

Strike confirms its all-scrip merger approach: offered 0.7142 shares on 16 Sep, 0.7521 on 16 Oct, and Warrego's board indicated on 27 Oct it intended to recommend 0.775 (about A$0.186, 40.6% premium), plus Spanish sale proceeds. Warrego holders would own ~28%.

business combination

Warrego received a non-binding proposal from its 50% EP469 partner Strike to acquire all Warrego shares by scheme at 0.775 Strike shares each, leaving Warrego holders about 30.5% of the combined group. Spanish asset sale proceeds within 12 months would be added. Due diligence is granted; no certainty of a deal.

business combination

Final WE-3 test: stabilised 83 mmscfd, limited by surface equipment, with pressure back near original reservoir level after three hours shut in. Strike says this supports the northern reserves in the July 422 PJ 2P upgrade; no sand or water.

well test result

NSAI lifts West Erregulla 2P reserves 41% to 422 PJ gross (211 PJ Warrego share) from 300 PJ, after WE-3 extended the field north-west. 2C contingent resource falls to 30 PJ gross from 128 PJ, consistent with some volumes moving into reserves.

resource reserve update

WE-3 confirms the field extends north: 38m net pay in a 60m gross Kingia gas column, 13.8% average porosity, no gas-water contact. Reservoir is the best in the field; the High Cliff was poor. NSAI will review reserves; production test next month.

drilling result

Warrego maps Erregulla Deep in north-east EP469 as an exploration target with unrisked prospective resources of 165-403 Bcf gross (82-201 Bcf net to Warrego). It is undrilled at Kingia depth and will be covered by the planned Natta 3D seismic.

resource reserve update

Warrego confirms WE-3 was re-entered and drilling resumed, targeting the Kingia and High Cliff reservoirs. The well was suspended in January 2021 by over-pressured gas. Drilling and completion take 45-55 days, then flow testing; the well will be completed for production.

drilling spud

March quarter: cash $36.15m (from $40.2m). The operator expects EPA approvals later than planned and now targets West Erregulla first gas in late 2024, a delay from 2H 2023. WE-3 re-entry set for June/July; WE-5 retest slips to 2023.

quarterly activities report

Warrego ends its Spanish divestment review and will keep Tesorillo (85%, 830 Bcf unrisked prospective) and El Romeral (50.1%), citing sharply higher European energy prices. This reverses the earlier sale discussions. Development options are to be chosen by end of the financial year.

asset acquisition disposition

Warrego agrees to farm out 50% of STP-EPA-0127 (2.2m acres) to Mitsui E&P Australia, which carries Warrego's year one and two exploration costs up to $1.5m. Mitsui may take operatorship from year three. Subject to permit grant and approvals. This resolves the farminee search.

farm in farm out agreement

Executive Director David Biggs steps down from the board and CEO Australia role on 31 Dec 2021, weeks after being re-elected. MD Dennis Donald takes direct oversight of Australian operations. Michael Atkins joins as non-executive director, giving a majority of non-executive directors.

director officer appointment

NSAI certified West Erregulla Kingia 2P Reserves of 300 PJ gross (150 PJ Warrego share) with 3P of 372 PJ, plus 128 PJ 2C contingent and 198 PJ 2U prospective resources. Warrego says this is in line with the May 2020 RISC resource certification and supports its Alcoa gas contract.

resource reserve update

WE-5 flowed only 13.1 MMscf/d instantaneous and 5.1 MMscf/d sustained, which Strike attributes to near-wellbore skin and an ineffective completion. It plans a recompletion and retest. Pressures match other wells, and gas flowed to at least 4,670m subsea.

well test result

Strike, Warrego's 50% partner and operator, bought an 8.16% stake in Warrego for about $22m, lifting its economic interest in West Erregulla to 54%. It says it has formed no intention on any further transaction involving Warrego.

asset acquisition disposition

WE-4 sustained 35 MMscf/d from the Kingia, with sand managed by conservative choke settings. Warrego says water entry at about 4,912m may indicate a gas-water contact, an interpretation that diverges from the operator's. Earlier reports found no contact.

flow test result

Warrego has started paying AGIG to commit long lead items for the 87 TJ/d processing plant, funded from the June placement (its 50% share of up to $31.5m). Payments are refundable once the full agreement and project finance are in place. First gas is now targeted for mid-2023.

material agreement

Warrego raised $50m via a two-tranche placement at $0.22 per share, a 10.2% discount to the last close. It funds long lead items for the 87 TJ/d plant and gathering system, and the unbudgeted WE-3 re-entry. Tranche Two ($17.6m) needs shareholder approval.

capital raising announcement

WE-4 reached 5,069m with the thickest Kingia seen in the basin (155m), porosity up to 19% and 6,821 psia pressure. No gas-water contact was found, extending the field. Strike says this materially de-risks Phase 1; a flow test is to follow. Warrego asked for its trading halt to be lifted.

drilling result

Warrego completed its acquisition of 50.1% of El Romeral, a Spanish gas and 8.1MW power operation, first announced December 2019. It runs at about 22% of nameplate. Warrego is examining ways to increase value from its Spanish assets, El Romeral and Tesorillo.

asset acquisition disposition

WE-3 was suspended with cement plugs after meeting an over-pressured gas column. The rig moved to WE-4, which has spudded. WE-3 will be completed later, so the northern-area result is delayed.

drilling progress report

Warrego raises $32.0m in a two-tranche placement at 21c, a 14.3% discount to the last close, to fund WE-4 and WE-5, 3D seismic and working capital. Tranche 2 ($6.0m) needs approval at the 25 November meeting. A share purchase plan capped at $4m is also offered at 21c.

capital raising announcement

Warrego relays Strike's update: while drilling the first intermediate section of WE-3, the drill assembly broke and the bit and motor were left in the hole. Fishing failed, so the well will be cemented and side-tracked. A setback and delay for the first appraisal well.

drilling progress report

Warrego and Strike sign a binding Heads of Agreement for joint West Erregulla development: Phase 1 plant raised to 80 TJ/d, FID targeted by end of Q1 2021, first gas mid-2022, and WE-5 added to the drilling campaign. Strike's FID target thus moves from Q4 2020 to align with Warrego's.

joint venture update

Warrego signed a binding 155 PJ gas sales agreement with Alcoa, starting 1 January 2024 and subject to a positive FID expected in 1H 2021. The company said the deal is large enough that no further sales agreements are needed to support FID.

contract award

Operator Strike reports Rig 970 is rigged up and West Erregulla 3 begins drilling on 21 September, starting with a 26-inch surface hole to about 1,200m. This is the first appraisal well since WE-2 and the northern-area test.

drilling spud

Warrego explains that an administrative error left the 27.6m tranche 2 shares (issued 22 July) without a cleansing notice until 3 August. The Federal Court has cleared the roughly 7m shares sold meanwhile. Trading resumes 21 September.

listing compliance notice

ASX suspends Warrego shares until court orders are granted, linked to the timing of a cleansing prospectus. This follows the missed cleansing notice for the tranche 2 placement shares.

listing compliance notice

Non-executive director David Biggs becomes Executive Director and CEO Australia from 1 August 2020 on A$400,000 salary, leading the Perth team on West Erregulla. Dennis Donald focuses on Europe and Spain. The board now has an executive majority, which the company says it will address.

director officer appointment

Strike, for the joint venture, contracts Ensign Energy's rig 970 for up to three West Erregulla wells. WE-3 is due to spud in Q3 2020, WE-4 to follow, and a WE-5 decision is due by 30 November 2020.

contract award

Warrego raised $15m in a two-tranche placement at 13c, an 18.8% discount to the last close. Tranche one is 94.9m shares ($12.3m) and tranche two is 20.5m shares ($2.7m), which needs shareholder approval. The money funds WE-3 drilling and long-lead items for WE-4.

capital raising announcement

Operator Strike publicly notes its November 2019 resource estimate differs from Warrego's RISC-certified figure. It says it has not received RISC's report and that seismic attributes were not used, implying the full dataset was not considered. It stands by its own modelling.

resource reserve update

Independent review by RISC certifies West Erregulla Central Area 2C contingent resources of 513 Bscf gross (257 Bscf net to Warrego), with 3C of 966 Bscf. Northern Area prospective resource is 102 Bscf. This is well below Strike's November 2019 1,185 BCF 2C figure.

resource reserve update

Operator Strike says the EP469 joint venture approved the West Erregulla appraisal plan and multi-year budget, adding WE-4 to the approved WE-3, with WE-5 contingent (decision by November 2020). Drilling is planned from Q3 2020, with a development decision (FID) targeted for Q4 2020.

joint venture update

Warrego rejects an unsolicited, non-binding all-scrip proposal from West Erregulla partner Strike: 1.2 Strike shares per Warrego share, which would give Warrego holders about 31% of the merged entity. The board says it undervalues the company and will not engage; RBC and Allens appointed advisers.

business combination

Warrego will open a Perth office, with CEO Dennis Donald relocating from the UK. It appoints Cathy McKeagney as General Manager Commercial to market West Erregulla gas in 2020. David Casey, CEO Australia and Asia-Pacific, retires in January 2020.

director officer appointment

Warrego agrees to buy at least 50.1% of El Romeral, a producing gas and power project in southern Spain with three producing wells, via its 85%-owned Tarba. Initial price is €750,000, funded from cash. Partner Prospex has 90 days to take up to 49.9%.

asset acquisition disposition

Operator Strike books an initial 2C contingent resource of 1,185 BCF (gross) for the Kingia and High Cliff sandstones at West Erregulla, and updates the Wagina prospective resource. Warrego holds 50%. This resolves the resource booking awaited since the flow test.

resource reserve update

West Erregulla-2 flowed gas at a maximum 69 MMscf/d from the Kingia Sandstone on a 2-inch choke, over one hour. This is the flow test awaited since September. Warrego expects to update contingent resources soon, and plans 3D seismic and more wells in 2020.

flow test result

Warrego completes a $12m institutional placement at 29c per share (41.4m shares), a 4.9% discount to the last close. Funds go to EP469 appraisal, Spain, EPA-0127 and working capital. Follows the Aug cash query that flagged the need to raise capital.

capital raising announcement

Strike upgrades the Kingia discovery: net pay rises to 58m from 41m, with pressure of 6,814-6,828 psia and permeability of 102mD. Pressure suggests a 220m gas column. Contingent resource booking depends on a Kingia flow test within weeks. High Cliff pressure testing was hampered by hole washout.

resource reserve update

Strike reports a High Cliff gas discovery at West Erregulla-2: at least 22m gross gas, 10m net pay, 10.3% average porosity, no gas-water contact. Drilling finished at 5,100m, completing the Wagina, Kingia and High Cliff 'trifecta'. Resource booking awaits flow testing.

drilling result

Strike reports a Kingia gas discovery at West Erregulla-2: at least 97m gross gas column, 41m net pay, average 14.3% porosity with peaks of 19%, and no gas-water contact. This is the primary target Warrego's story hinged on. Drilling continues toward the High Cliff.

drilling result

Strike reports a significant gas discovery in the Wagina sandstone at West Erregulla-2: about 74m gross, 2.5m confirmed net pay, 14.2% porosity. Poor hole condition stopped pressure and sample collection. Contingent resource booking awaits a future flow test. Confirms the 24 July gas flow.

drilling result

ASX paused trading in Warrego shares pending a further announcement. No reason is given in the notice. The timing is just after the latest West Erregulla-2 update; any link is an inference.

listing compliance notice

West Erregulla-2 hit the Wagina sandstone at 4,102m, with high-pressure gas (over 98% methane) flowing to surface strongly enough to light the rig flare. Strike says this matches pre-drill modelling, but flow rates and porosity await logging. This is a secondary target.

drilling result

The raising is complete at $6.61m in total: the $6.1m placement plus $510,000 from the share purchase plan, all at 9.5c. The SPP raised about half of the $1m targeted. Funds go to West Erregulla-2 and next steps.

capital raising announcement

Warrego completed a $6.1m placement at 9.5c per share (64.2m shares), a 24% discount to the last trade, plus a share purchase plan targeting $1m. This answers the ASX cash query. Chairman Columbus took $300,000, subject to shareholder approval.

capital raising announcement

ASX queried Warrego's cash after the March quarter showed $4.336m cash and $3.205m of expected outflows next quarter. Warrego says it expects to continue by raising capital in the short term, which it calls highly likely.

listing compliance notice

The Warrego takeover has closed, with resolutions carried by 98% or more of votes cast by proxy. David Casey and Alex Sundich resign; Dennis Donald becomes CEO and Managing Director under Chairman Greg Columbus. Petrel is renamed Warrego Energy.

director officer appointment

Petrel exercised its option over Palatine Energy, which holds the EPA-0127 permit application (about 8,700 sq km, Perth Basin). Paid with $250,000 of Warrego convertible notes (face value $200,000), plus $100,000 in shares later once approvals and a work programme are in place.

asset acquisition disposition

Warrego completed a convertible note issue raising $5.05m, $1.2m above the amount in the meeting notice. Notes convert into Petrel shares if the takeover completes, at market-based prices or the AIM listing price, with maturity 31 December 2019. Funds the lead-up to West Erregulla-2.

capital raising announcement

Strike secured the Easternwell 106 rig and expects West Erregulla-2 to spud in early May 2019. Reprocessed seismic lifts the best-estimate prospective resource to 1,162 BCF gross (581 BCF Warrego). The Petrel-Warrego deal still needs Petrel shareholder approval.

drilling scheduled

Binding share purchase agreement signed for the Warrego reverse takeover, firming up the November term sheet. Warrego holders get about 77%; EGM planned 18 February and completion 19 February 2019. AIM listing is not a condition and may slip because of Brexit uncertainty.

business combination

Prospex paid €280,000 for a second closing, lifting its Tesorillo (Spain) stake to 15% (Petrel's falls accordingly). A final €1.725m for 34.9% depends on the MT survey and well approval. Petrel hopes to drill towards the end of 2019.

farm in farm out completion

After the AGM, Porter and Williams retired and Greg Columbus became Chairman, with Alex Sundich staying as non-executive director. Sundich will resign when the Warrego acquisition completes. Confirms the 22 October plan.

director officer appointment

Petrel signed a non-binding term sheet to buy private UK company Warrego via a reverse takeover; Warrego holders would get about 77% of Petrel. Warrego holds EP469 (West Erregulla), 50% farmed to Strike, which funds the first A$11m of a well planned for first half 2019. AIM listing sought.

business combination

Greg Columbus joins the board as non-executive director and is intended to become Chairman at the 29 November AGM. Russ Porter and Andrew Williams retire at the AGM. The company cites austerity and reduced funding; Columbus holds almost 10% of Petrel.

director officer appointment

SIH converted its US$500k preference capital into an extra 8% of the Uruguay venture, leaving Petrel at 41% and SIH at 59%. SIH added US$60,000 more and may add US$100,000 under its US$1.5m right (for 9.7%). Follows the 49% swap interest earlier in 2018.

joint venture update

Year to 30 June 2018: net loss $29.1m, including $19.1m impairments and an $8.2m loss from de-recognising Uruguay as a controlled entity. Total assets fell from $34.4m to $4.6m; net assets $3.5m. Focus shifted from Uruguay to Spain and North Perth Basin.

annual report

The placement and share purchase plan finished, raising $1,061,000 at 0.21c ($735k placement, $326k from the plan, which was below the $1m sought). Management salaries are halved for the current quarter, with no guarantee beyond it.

capital raising announcement

Petrel placed 350m shares at 0.21c to raise $735,000 (134m need approval at an early-August meeting) and launched a share purchase plan of up to $1m at the same price. Funds are for working capital and restructuring; management pay for Jan-June is share-based, subject to approval.

capital raising announcement

Petrel completed the 27 April swap: Tesorillo (Spain) interest rises to 97.5%, Uruguay falls to 49%. No Uruguay Letter of Intent was reached within the five weeks; a partner is still possible but needs all parties' and ANCAP approval. SIH has invested US$500k.

farm in farm out completion

Petrel extended its option to buy Palatine Energy, holder of a north Perth Basin permit application (STP-EPA-0127, 2.2m acres), for $10,000. Purchase would cost $200,000 in cash or shares plus $100,000 in shares later. This is a new Western Australian thread, dependent on native title agreements and permit grant.

asset acquisition disposition

Petrel swaps a 13.7% SEI interest for all of SEI's Spanish Tesorillo interests, lifting its Spain stake to 97.5% but cutting Uruguay to 49% (SIH 51%). SIH may fund up to US$500k for 8% more. Petrel has five weeks to find a new Uruguay partner.

asset acquisition disposition

The rights issue raised only $247,451 (61.9m shares) of the up to $4.5m sought, leaving a 1.06bn-share shortfall. Petrel says it will now take a non-funding position in Uruguay or sell project assets to cover unpaid liabilities. This is the less-than-half scenario outlined on 1 March.

capital raising announcement

Half-year loss to 31 December 2017 was $19.97m, including $17.6m Uruguay and $1.35m Spain impairments, confirming the write-down flagged in February. Net assets fell $14.7m. The company is still seeking a partner or raising to restart Cerro de Chaga-1.

half year report

Petrel launched a rights issue of up to A$4.5m at 0.4c (2 new shares for every 3 held) to fund restarting Cerro de Chaga-1 ($2.9m) and pay $1.1m of creditors. Under half subscribed, it says it may sell assets to cover unpaid liabilities. Drillers took a 2% royalty for $1.66m of invoices.

capital raising announcement

ASX queried cash after the quarter showed $5.4m operating outflow and $831,000 cash left. Petrel says it is considering share issues, borrowing and a new partner, and that a write-down of the ~A$39m capitalised exploration cost is likely.

listing compliance notice

SEI agreed to sell up to 49.9% of the Tesorillo (Spain) company to AIM-listed Prospex for up to €2.05m in three tranches, funding SEI's share of a ~€3.8m work programme. Petrel's net interest would fall to 31.4%. Prospex will operate.

farm in farm out agreement

After the partner failed to fund a cash call, Petrel funded its US$2.04m share and paid US$1m for an option, lifting its stake in operator SEI from 51% to 62.7%. Cerro de Chaga-1 hit difficult drilling at about 558m.

asset acquisition disposition

Cerro de Chaga-1 (Panizza), the second of four Uruguay wells, spudded late on Friday and had drilled to 100m, with surface casing cemented. It targets the largest regional high with four-way dip closure; Petrel holds 51%.

drilling spud

Production testing at Cerro Padilla-1 recovered a small amount of oil to surface from 2m of sand at 795m, the first oil produced in Uruguay. The CEO says the well appears off structure and the oil is not material. Rig is moving to Cerro de Chaga-1.

well test result

Entitlement offer closed fully subscribed, raising $4.57m at 1.1c; shareholders took 76% of the shares and shortfall applicants took the other 24%. Underwriter took none. Together with the $880,000 placement, this funds the Uruguay programme. Refunds of $3.49m were due.

capital raising announcement

Cerro Padilla-1 reached 845m and logs confirm 2m of oil-saturated sand at 793m, which the company calls the first hydrocarbon discovery in Uruguay. It describes it as modest; the well is being completed for production testing. Resolves the drilling troubles with a first result.

drilling result

Petrel raises $3.5m to $5.45m at 1.1c: an $880,000 placement of 80m shares is done, plus a 1-for-3 entitlement offer of up to $4.57m, underwritten to $2.61m, with free 4c options. Management says the Uruguay programme is behind schedule and over budget.

capital raising announcement

Cerro Padilla-1, the first well of the four-well programme and the first onshore Uruguay well in about 40 years, spudded over the weekend. It targets Tres Islas sand and Permian source rock at shallow depth, with estimated OOIP P90 of 21 MMB.

drilling spud

Petrel placed 73.5m new shares at 3.4c to raise $2.5m, over 30% oversubscribed. The money is a contingency for the Uruguay wells (deepening, testing, overruns), plus working capital and keeping pace with partner funding to avoid dilution.

capital raising announcement

SEI signed its drilling contract with New Force Energy Services for the four Uruguay wells. Tax and labour-law complexity delayed it, so equipment now ships in late January and the rig in February, later than the mid-December target.

contract award

Final shortfall tranche of $1.38m placed, completing the rights issue at about $5.25m of the $5.3m maximum; only $54,237 (about 1%) went unsubscribed. The extra funds give room for expanded testing or more drilling.

capital raising announcement

Funding for the four Uruguay wells is confirmed: Petrel funds its 51% and SEI's other shareholders (49%) have committed their share. This resolves the open question of funding. Rig contract is close to final and the rig is expected to mobilise in January.

joint venture update

Rights issue closed with $1.72m of valid applications; Patersons' underwriting takes up the rest to reach $3.0m, against a maximum of $5.3m. About $2.3m of shortfall remains to be placed by 30 November 2016.

capital raising announcement

Petrel launches a renounceable 1-for-1 rights issue at 1c to raise up to $5.3m, with $3.0m underwritten by Patersons, plus a free 4c option per two shares. The company says the farm-out process may not have produced a partner, so it will fund Uruguay drilling itself.

capital raising announcement

Petrel completes a $710,000 placement of 35.5m shares at 2c, with one 5c option per two shares expiring January 2018. Funds finalise the four-well Uruguay permitting and the farm-out. Price is below the 4.5c raise of July 2015. Casey's 1m shares need approval.

capital raising announcement

December-quarter report says the Erath County Barnett Shale project has been sold. Permitting is under way for a four-well Uruguay programme (US$3.5m, 100% basis) and new parties have joined the farm-out process. One shallow gas target has a 240 BCF P50 resource.

quarterly activities report

Petrel completes a $1m placement of about 22.2m shares at 4.5c, a 10% discount, plus a planned share purchase plan of up to $1.2m. Far below the 11.5c raise in October 2014. Directors' shares need approval at the 8 November AGM.

capital raising announcement

Petrel and SEI start a formal search for a farm-in partner for the Uruguay concessions, hiring Royal Bank of Canada, after unsolicited interest from several parties. This advances the partner search flagged since January; no deal yet.

farm in farm out agreement

Uruguay re-certified with gas now included: up to 464 MMBBL oil plus 1,583 BCF gas net to Petrel (910 MMBBL, 3,105 BCF gross). Oil falls from 902 MMBBL net in January; management says total is slightly lower in barrel-equivalent terms. Lead B upgraded to a prospect.

resource reserve update

Spain Tesorillo re-certified: unrisked prospective resource up to 992 BCF net to Petrel (2,289 BCF gross), down from the earlier 1,304 BCF net. Gas in place roughly halved, but the top-end resource fell about 24%. Resolves the review under way since January.

resource reserve update

Stephen Mitchell retires as Executive Chairman and director on 31 January 2015, as flagged in October. Alex Sundich, a non-executive director since listing in 2012, becomes non-executive chairman from 1 February. Mitchell stays SEI chairman and a consultant.

director officer appointment

First independent certification for Uruguay: unrisked prospective resource of up to 902 MMBBL net to Petrel's 51%, up to 1,768 MMBBL gross, across 20 conventional leads of 2 to 241 MMBBL. Built on the new seismic; the company now plans to look for partners.

resource reserve update

Petrel's affiliate SEI finished 597km of 2D seismic across the Salto and Piedra Sola blocks in Uruguay on 30 October. Early analysis showed good data through up to 1000m of basalt, a deeper basin in Salto and potential conventional leads, with more processing still needed.

drilling result

Managing Director David Casey's contract is extended two years to 1 August 2016, with a further one-year option. Executive Chairman Stephen Mitchell will not renew and retires from the board on 1 February 2015, staying on as SEI chairman and consultant.

director officer appointment

Petrel completed a $2m underwritten placement at 11.5c (about 17.4m shares), a 4.2% discount to the last close, plus a planned share purchase plan of up to $3m. This follows the $3m raised in December 2013 at 13.5c, at a lower price.

capital raising announcement

J. Russell Porter, CEO of NYSE MKT-listed Gastar Exploration, was appointed a Petrel director effective 29 July 2014. He previously worked with managing director David Casey on the Narrabri gas project, where Gastar held 35% and Casey ran Eastern Star Gas.

director officer appointment

The 580km Uruguay seismic is due to start around 7 July. Petrel has suspended support for the troubled third corehole, Cerro Padilla E-2, which will not reach target depth; the contractor continues at its own cost. Spain farm-out offers so far fall short of value, with talks continuing for months.

drilling progress report

Petrel and partner Bernum have hired Macquarie to seek proposals for sale of their Lochend Cardium assets, including 2 producing wells. Petrel's share is about 3,019 net acres. It reverses the earlier plan to drill more wells; the stated aim is to focus on Uruguay and Spain.

asset acquisition disposition

Lab tests on Cardozo Chico core show porosity above 20% and permeability of 1-3 Darcy, over 20 Darcy in places. Petrel says this points to conventional reservoir potential alongside the shale oil. Data come from one corehole only; no oil flow has been tested.

drilling result

Final Cardozo Chico results show average organic carbon of 3.32% (max 11.6%) and free oil in samples. Cerro Padilla was abandoned at 860m because of hole instability, but found a 30 m Permian shale; a re-drill is planned at the contractor's cost. Oil generation is confirmed, not yet a flow.

drilling result

Petrel raised $3m by placing 22,222,222 shares at 13.5c, an 11.5% discount to the 10-day VWAP and 5.3% dilution. The money funds the Uruguay coring and seismic and strengthens its hand in the Spanish farm-out.

capital raising announcement

Petrel exercised its US$5.5m first option, lifting SEI from 25% to 51%. That takes Uruguay to 51% and Tesorillo (Spain) to 43.35%, with funds mainly for 2014 seismic. The second option (to 60%, US$6m) is extended to 30 September 2014. Cerro Padilla is coring at 860m.

farm in farm out completion

Independent certifier NSAI puts Tesorillo (Spain) unrisked Prospective Resource at up to 3,007 BCF (3 TCF) at P10, with a P50 of 1,209 BCF. Petrel holds a net 21.25% now, 43.35% if it lifts SEI to 51%. This is the first resource figure for Spain, still undrilled prospective gas.

resource reserve update

The shallower Uruguay corehole, Cardozo Chico, hit a 10 m Permian shale at 457 m with 3.3% average organic carbon and signs of oil generation. The deeper Cerro Padilla well is delayed by a faulty blowout preventer. Early encouragement, not yet a flow or resource.

drilling result

Petrel and operator SEI spudded both Uruguay coreholes on 2 September 2013 in Piedra Sola: Cardozo Chico E-1 (planned 750 m) and Cerro Padilla E-1 (planned 1,250 m). Drilling was expected to take 30-40 days, with lab results 1-2 months after completion.

drilling spud

Petrel and partners start a farm-out process for the Tesorillo gas project in Spain, covering 38,000 ha. This follows the January licence cut and the farm-out sought earlier. No partner or deal is yet announced.

farm in farm out agreement

Petrel completes the Cardium acquisition: the C$2.8m purchase price is paid, giving it 40% of up to 8 gross sections. About C$0.5m of further costs for well equipping and leasing are due within a month.

asset acquisition disposition

Petrel completes a $10.65m raising at 8.5c: 90.0m placement shares ($7.65m) and 35.3m SPP shares ($3.0m). About two thirds of the SPP was taken up; the shortfall went to professional investors. Shareholders approved the placement on 7 May.

capital raising announcement

The 16-19 Lochend Cardium well, bought in March, achieved a 30-day initial production rate of 150 barrels of oil a day, which the company says is slightly above expectations. This gives Petrel its first oil cashflow.

production update

Petrel launches a raising of up to $10.5m to fund the Cardium purchase and Uruguay work: a roughly $7.5m placement at 8.5c, plus a up to $3.0m share purchase plan at the same price. Placement needs shareholder approval at a 7 May 2013 meeting.

capital raising announcement

Petrel agrees to buy a 40% interest in about 2,048 net acres of Cardium tight oil in Alberta from Bernum Petroleum for C$3.3m, including a newly producing horizontal well. A private placement and share purchase plan are to be announced within days. First oil production for Petrel.

asset acquisition disposition

Petrel completes the US$2.5m purchase of 25% of SEI, giving it exposure to 14,000 sq km in Uruguay and 85% of two Spanish gas licences. This closes the 26 October deal; options to reach 60% for US$11.5m remain.

asset acquisition disposition

Petrel buys 25% of Schuepbach Energy International (Uruguay shale concessions, 14,000 sq km) for US$2.5m from existing cash, plus 85% of two Spanish gas licences. Options could lift SEI stake to 60% for a further US$11.5m. Subject to Uruguayan ANCAP approval; a new strategic direction beyond Texas.

asset acquisition disposition

David Casey, former Eastern Star Gas managing director, becomes CEO and Managing Director on a $425,000 salary, and holds 11.8% of Petrel. A sign-on grant of 5.5m shares at 5.5c needs shareholder approval. Langusch stays as executive director, moving from interim CEO to business development.

director officer appointment

Petrel signs a conditional deal to sell PELs 6, 427 and 428 to Comet Ridge for $750,000 cash. With the Acer sale, six of seven NSW licences are sold for $1.05m gross, slightly above the original $1m. Options for 100%-owned PEL 455 are being considered.

asset acquisition disposition

Petrel signs a conditional agreement to sell PELs 422, 424 and 471 to Acer Energy for $300,000, part of the $1m NSW sales accepted on 2 May. A binding deal for the Surat-Bowen licences is targeted within a month.

asset acquisition disposition

First Barnett well, Montie Stewart #1, came on at about 570,000 cf/d after stimulation on 25 April, at the upper end of local start-ups. Two more wells follow within a month. Initial rates are only an early indication.

flow test result

Petrel accepts firm offers from two buyers for all seven NSW licences, for $1 million total before costs. Subject to binding agreements. Resolves the March sale process and ends the former Orion's NSW exploration business.

asset acquisition disposition

Petrel is seeking expressions of interest in its seven NSW licences, now called non-core, and has hired AFG Venture Group. It may or may not lead to a sale. This marks a move away from the NSW coal seam gas and conventional exploration assets.

asset acquisition disposition

The Petrel merger closed after shareholder approval. 115,135,535 new shares and 9.3m options went to Petrel holders (about 43%). Stephen Mitchell becomes chairman; Bursill leaves the board. Three Barnett gas wells hit gas-charged shale 100-120 feet thick.

business combination

Orion signs a binding deal to buy unlisted Petrel Energy for 115.1 million new shares, leaving Orion holders with 57%. Petrel's first project is a Barnett Shale gas venture in Texas. This is the outcome of the Miro strategic review; shareholder vote expected January 2012.

business combination

ESG wins board control: Willcocks and Morton resigned before the meeting, Watson after it, and Langusch, Bursill and Sundich were elected. Sundich is chairman; Langusch interim CEO at $31,800 a month for three months. A three-month strategic review starts; Energetica exclusivity lapsed.

director officer appointment

Non-binding MOU to acquire Energetica Resources' Surat/Bowen, Otway and south-west NSW tenements for Orion shares and options, number not yet set. 30-day due diligence, 40-day exclusivity; shareholder approval needed. Two near-term wildcat wells offered. Follows Langusch's exit.

asset acquisition disposition

Managing Director Russell Langusch resigned from the board immediately, and chairman Robert Willcocks becomes interim CEO. No reason is given in the text. It removes the executive who led the diversification push.

director officer appointment

First independent CSG resource certification: Orion's net share is 243.7 PJ of recoverable contingent and 1,079.4 PJ of prospective resources across PELs 6, 427 and 428. PEL 427 is the largest part. Management calls CSG a bonus to its conventional focus.

resource reserve update

Orion says the Octanex bid has lapsed. Acceptances were under 1% of issued capital, about 1.53m shares, and will be returned. The board calls this unprecedented shareholder support. The takeover threat ends with Orion's shareholders retaining their shares.

business combination

Octanex confirms its offer for Orion lapsed at 7pm on 1 June 2010 and was not extended. The offer conditions remained unsatisfied.

business combination

Toenda-1 ST1 reached 1,924 m with no significant hydrocarbon shows in either Back Creek target; it is to be plugged and abandoned. Only flammable bitumen fragments were seen. A dry hole for the Willaroo-1 follow-up; Camurra-2 CSG corehole is next.

drilling result

Robert Willcocks, a former Mallesons senior partner, joins Orion's board as independent director and becomes Non-executive Chairman. Dennis Morton, chair since listing, stays as a non-executive director. It comes as Orion defends against the Octanex bid.

director officer appointment

Toenda-1 spudded on 11 April 2010 in PEL 6 and had reached 509 m, running casing. The main Upper Back Creek sandstone target is expected around 1,360 m, with planned depth 1,850 m. Orion holds 97.5%.

drilling spud

Toenda-1, a PEL 6 oil wildcat, is due to spud next week, targeting 1,850 m. It targets a best-case 31.4 million barrels in place, 7.7 million recoverable, near the non-commercial Willaroo-1. Orion holds 97.5%. PEL 6 was also renewed for two years.

drilling scheduled

Orion's board unanimously rejected Octanex's bid, saying it values Orion at about 6.2 cents against a last trade of 7.5 cents. It says the $11m cash and director-warranty conditions won't be met. Eastern Star Gas, with over 22%, won't accept.

business combination

Milguy-1 reached 933 m, cored about 6 m of gassy net coal, then lost its drill string and was plugged and abandoned. Lab results are pending. This completes Stage 2, so Eastern Star Gas now holds 75% of PEL 6 coal seam gas and Orion 22.5%. A third well is planned.

drilling result

Orion and Gas2Grid terminated the merger agreement after Orion's expert BDO said it would revise its opinion, following lower asset valuations from the geologist. It could not complete by the 31 March end date. No break fees were payable.

business combination

Octanex, holding about 7.1% of Orion, announced a conditional bid of one Octanex share for every six Orion shares, implying 7.25 cents against Orion's 7.1 cent close. It opposes the Gas2Grid merger, arguing Orion's cash would be used up. It is a rival to the merger.

business combination

Orion and Gas2Grid will open but immediately adjourn their merger meetings, to 23 and 24 February 2010. Letters from lawyers for undisclosed shareholders challenged the independent experts' reports, which the experts are reviewing. The merger vote is delayed about four weeks.

business combination

Gwydir-1, the first coal seam gas corehole in PEL 6, reached 814 m with about 4 m of net coal and was plugged and abandoned. This completes Eastern Star Gas's Stage 1 earn-in. Milguy-1 is due to spud this month and would lift ESG to 75% of PEL 6 CSG rights.

drilling result

Orion and Gas2Grid signed a binding Merger Implementation Agreement: Orion will acquire all Gas2Grid shares and options via schemes at 1 Orion share per 2.25 Gas2Grid shares. This firms up the October talks. Gas2Grid meetings are likely in January 2010, subject to due diligence and approvals.

business combination

Orion and Gas2Grid announced preliminary talks on a possible change-of-control deal, discussed at one Orion share for every 2.25 Gas2Grid shares. Structure and pricing are unsettled. This is the merger direction behind the recent board resignations (inference).

business combination

Russell Langusch, a petroleum engineer with 34 years' experience and former founding MD of Elixir Petroleum, was appointed Managing Director, replacing Barry Smith. He resigned from the Gas2Grid board to take the full-time role.

director officer appointment

Chairman Bun Hung, MD Barry Smith and director Guy Allinson resigned over a disagreement with major shareholders Eastern Star Gas and Ingalls & Snyder about whether merger transactions suit the company. Russell Langusch joined; Dennis Morton became chairman.

director officer appointment

Orion was granted PEL 471, a new Darling Basin licence with a four-year initial term, 100% held. It is surrendering PEL 8, where Nyngynderry-1 was dry, as review found no remaining potential. Two PEL 6 coal seam gas coreholes are planned for the second half of 2009.

regulatory community update

Nyngynderry-1 in PEL 8 reached its total depth of 2,266 m with no hydrocarbon indications, and preparations began to plug and abandon it. Planning also began for the Eastern Star Gas coal seam gas coreholes in PELs 427 and 428.

drilling result

Ensign Rig 30 started drilling Nyngynderry-1 in PEL 8 on 3 September 2008, targeting about 2,500 m. It is a frontier Darling Basin test, with over 150 BCF gas in-place potential in each of two targets. Burnamwood-1 is planned for 2009.

drilling spud

Eastern Star Gas announced its side of the coal seam gas farm-in with Orion: three coreholes plus 100 km of seismic to earn 50% of CSG rights in PELs 6 and 427 and 40% in PEL 428. ESG estimates a high-side 3,500 Bcf prospective resource.

farm in farm out agreement

Orion signed the CSG farm-out with Eastern Star, conditional on regulatory and co-venturer approval. ESG earns 40-50% of CSG rights by funding three coreholes and 100 km of seismic. This also satisfies Orion's Comet Ridge commitments, lifting its conventional stakes in PELs 427 and 428 to 75% and 60%, at no cost to Orion.

farm in farm out agreement

Willaroo-1 recovered only 2-4 barrels of oil, emulsion and mud from a test at 1,700-1,720 m. The PEL 6 joint venture will plug and abandon the well, though Orion says the oil proves a petroleum system in the southern Bowen Basin.

drilling result

Willaroo-1 found live oil shows at three levels between 1,708 and 1,743 m, but in poor-quality sands. No shows were seen in the main Precipice target. Orion says the oil proves a petroleum system, but logs are needed to judge significance.

drilling result

Letter of intent signed with Ensign Australia for Willaroo-1 (PEL 6, 2,000 m) to spud late March 2008. Targets are 40 million barrels oil and 160 BCF gas in-place; Nyngynderry-1 follows in late May/June.

drilling scheduled

Orion Petroleum admitted to the ASX Official List on 10 December 2007. Quotation of 115.5 million shares issued at $0.20 and 115 million $0.30 options (expiring 30 September 2010) starts 12 December.

other

Prospectus lodged for Orion Petroleum's float (later Warrego Energy), an NSW oil and gas explorer planning to list on ASX as OIP, offering shares and listed options. Underwritten by Patersons and Commonwealth Securities; raise size and price not in the excerpt.

capital raising announcement