1 Apr 2010drilling progress report● Neutral
Eastern Star Gas's bimonthly report: Milguy-1 was released on 24 March at 933 m, confirming ESG now holds 75% and Orion 22.5% of PEL 6 coal seam gas. The rest covers ESG's own wells. Nothing new.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
23 Mar 2010drilling result● NeutralMajor
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.
16 Mar 2010drilling progress report● Neutral
Eastern Star Gas's bimonthly report: Milguy-1 in PEL 6 reached 933 m with about 6 m of coal in the Moolayember, but the drill rods parted and fishing began. Rest covers ESG's wells.
11 Mar 2010half year report● Neutral
Orion's half-year report to 31 December 2009 shows a net loss of $872,000 and net assets of $861,000. It notes the merger was terminated on 11 March and that Toenda-1 drilling is planned for March–April 2010.
11 Mar 2010business combination▼ Bad
Gas2Grid's copy of the joint announcement: the merger with Orion is terminated after Orion's expert signalled a revised opinion. No break fees were payable. The companies say they will keep exploring ways to work together.
11 Mar 2010business combination▼ BadMajor
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.
1 Mar 2010drilling progress report● Neutral
Eastern Star Gas's bimonthly report: Milguy-1 in PEL 6 reached 869 m with about 3 m of coal in the Moolayember, still drilling. The rest covers ESG's own Narrabri wells. No final result for Orion yet.
24 Feb 2010business combination▲ Good
Gas2Grid shareholders approved the merger scheme with 92.62% of votes cast, and optionholders approved unanimously. Completion still needs Orion's 26 February vote and Federal Court approval, so Orion's side remains open.
22 Feb 2010business combination● Neutral
Orion's independent directors say Octanex's conditional bid (1 Octanex per 6 Orion, 7.25c) is unattractive. It requires $11m cash, which they say won't be met, and director warranties they won't give. They propose adjourning the merger meeting again to 26 February.
19 Feb 2010business combination● Neutral
Orion acknowledged Octanex's highly conditional takeover intention and said directors are considering the position. Advice to shareholders will follow as soon as possible. No decision on the merger meeting yet.
18 Feb 2010business combination● Neutral
Octanex wrote to Orion's board asking it to adjourn the 23 February meeting until after Octanex lodges its bidder's statement. It says shareholders have too little time to consider its bid. This is a request, not a decision.
18 Feb 2010business combination● NeutralMajor
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.
16 Feb 2010drilling progress report● Neutral
Milguy-1, the second coal seam gas corehole in PEL 6, spudded on 2 February 2010 and was at 676 m, running the coring assembly. Completing it gives Eastern Star Gas 75% of PEL 6 CSG rights, leaving Orion with 22.5%. No result yet.
10 Feb 2010business combination● Neutral
Gas2Grid sent shareholders and optionholders a letter saying its independent expert saw no reason to withdraw or amend its report. The adjourned scheme meetings are on 24 February 2010, with court hearings on 3 March and indicative implementation on 16 March if passed.
2 Feb 2010drilling progress report● Neutral
Eastern Star Gas's bimonthly report: the rig for Milguy-1 in PEL 6 is set up and ready to spud. The rest covers ESG's own Narrabri wells and updated reserves. No new result for Orion.
25 Jan 2010business combination▼ BadMajor
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.
25 Jan 2010business combination● Neutral
Duplicate of the joint announcement: the Orion and Gas2Grid merger meetings will be adjourned to 23 and 24 February 2010 while the independent experts respond to shareholder lawyers' letters. Nothing new beyond the earlier release.
15 Jan 2010drilling progress report● Neutral
Eastern Star Gas's bimonthly report: Gwydir-1 was plugged and abandoned at 814 m with 4.0 m of coal. The rig moves to PEL 6 for Milguy-1, expected around 22 January. Wet weather suspended ESG's other drilling. Most of the report covers ESG's own wells.
7 Jan 2010admin correction● Neutral
Gas2Grid says the scheme booklet was posted on 23 December 2009, with a cover note correcting two points. The last trading day for Gas2Grid shares and options is 4 February 2010, not 3 February, and the proxy form is not personalised. Administrative only.
6 Jan 2010drilling result● NeutralMajor
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.
18 Dec 2009business combination● Neutral
Joint announcement that the Federal Court convened Gas2Grid scheme meetings for 28 January 2010, with Orion's own shareholder meeting on 27 January. The Scheme Booklet is due to be sent the following week. Repeats the 18 December court-order news.
18 Dec 2009business combination● Neutral
The Federal Court ordered Gas2Grid scheme meetings for 28 January 2010. Orion's own shareholder meeting is set for 27 January 2010. The Scheme Booklet is expected to go out the following week, moving the merger from agreement to vote.
16 Dec 2009drilling progress report● Neutral
ESG's December report: Gwydir-1 reached 759 m with 4.0 m of coal in the Moolayember Formation, and will be deepened to look for Permian coal. Other wells are ESG's Narrabri operations.
1 Dec 2009drilling progress report● Neutral
Eastern Star Gas's bimonthly report: Gwydir-1 in PEL 6 is coring at 597 m, having intersected 3.5 m of coal. The rest covers ESG's own Narrabri wells, not Orion's.
1 Dec 2009drilling progress report● Neutral
Orion forwarded the Gwydir-1 update: 597 m, coring ahead, 3.5 m of coal so far in the Moolayember Formation. No final result yet.
30 Nov 2009security holder rights change● Neutral
Escrow ends on 12 December 2009 for 39.5 million shares and 3.75 million 30-cent options expiring September 2012, freeing them for sale from 14 December. Orion will apply for quotation of the shares.
27 Nov 2009investor presentation● Neutral
Gas2Grid's lodged copy of the same AGM merger presentation, with the added line 'funding secured'. Terms and figures are unchanged: $13.5 million combined cash, trading as combined company targeted for 15 February 2010.
26 Nov 2009investor presentation● Neutral
AGM presentation repeating the Gas2Grid merger case: 236.4 million shares post-merger, $32.6 million market cap at 13.8 cents, and $13.5 million cash for an 18-month program. Targets trading as combined company from 15 February 2010. Nothing new.
16 Nov 2009drilling spud● Neutral
Gwydir-1, the first coal seam gas corehole in PEL 6, spudded on 16 November 2009 and was coring at 32 m. It is the last Stage 1 well for ESG. The drilling follows the earlier notice and carries no result yet.
9 Nov 2009drilling scheduled● Neutral
Orion forwarded Eastern Star Gas's notice that the Gwydir-1 coal seam gas corehole in PEL 6 would spud later that week, with Milguy-1 about a month after. Both complete ESG's farm-in. ESG's internal high-side estimate for PELs 6, 427 and 428 is 3,500 PJ.