1 July 2021drilling progress report● Neutral
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Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
25 June 2021capital raising announcement● NeutralMajor
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.
21 June 2021drilling result● Neutral
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15 June 2021drilling progress report▲ Good
WE-5 is at 4,895m, having passed through the primary Kingia Sandstone (top at 4,771m) with significant gas shows and drilling breaks. Sand-handling equipment has arrived and WE-4 is being rigged up to resume clean-up.
26 May 2021drilling progress report● Neutral
WE-5 finished its intermediate section at 3,635m, with casing cemented and tested in under 17 days. De-sanding equipment for WE-4 is being procured, with the clean-up and flow test now expected to restart in early June.
19 May 2021drilling progress report▼ Bad
WE-4 clean-up was paused because sand was coming up in the production stream, and about two weeks were needed to procure extra equipment. WE-5 was drilling ahead at about 3,356m.
17 May 2021investor presentation● Neutral
UK investor presentation repeating known points: WE-4 results, WE-5 spudded, cash $24.0m at 31 March, no debt. It shows 989.2m shares and a market cap of about $257.2m at about 26c. No new information.
17 May 2021drilling progress report▲ Good
Strike reports WE-4 core results: permeability up to 430mD and porosity up to 19.9% in the Kingia, confirming high reservoir quality. The WE-4 flow test is still cleaning up, and WE-5 is drilling at about 2,785m after cementing its first casing string.
10 May 2021drilling spud▲ Good
WE-5, the third well of the campaign, spudded on 8 May 2021 and finished its first hole section at about 1,567m, using a design with one fewer casing string. The WE-4 flow test has started, with 75m of Kingia perforated.
19 Apr 2021drilling progress report▲ Good
WE-4 drilling is complete: 5-1/2 inch production casing is cemented and the rig is being packed down to move to WE-5. Early core data confirm high-quality Kingia sandstone. A roughly 5-day flow test is scheduled for early May.
8 Apr 2021drilling result▲ Good
Strike's release of the WE-4 result (same content as the Warrego-lodged copy): final depth 5,069m, Kingia 155m thick with 28m net pay, no gas-water contact, and gas down to extended 61m deeper. Results are above expectations and a flow test follows.
8 Apr 2021drilling result▲ GoodMajor
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.
31 Mar 2021drilling progress report▲ Good
About 45m of gas-bearing Kingia core was recovered to 4,931m and sent for lab testing. Drilling continues toward the High Cliff Sandstone, the last main target, where coring will be repeated.
25 Mar 2021drilling progress report▲ Good
WE-4 reached the top of the primary Kingia Sandstone target at about 4,870m, with gas shows and drilling breaks. Strike is now changing the drilling assembly to core a 45m interval of the Kingia.
22 Mar 2021drilling progress report▼ Bad
Wireline data confirm a large Dongara/Wagina gas column but show less net pay and lower permeability than the earlier real-time logs. Strike says this suits the field edge location. A resource update may need more WE-4 and WE-5 data. Drilling is at 4,400m.
18 Mar 2021drilling progress report▲ Good
WE-4 at 4,248m: real-time logs show 35-40m of conventional pay in a 206m gross gas column across the Dongara and Wagina sandstones, with no water leg yet. These are preliminary figures to be confirmed by wireline logging and gas sampling.
10 Mar 2021half year report● Neutral
Results release: cash $33.4m, no debt. El Romeral acquisition completed 28 Feb 2021. EPA-0127 (100%, 2.2m acres) awaits Native Title agreements before grant, then a minority farm-out is intended. Strategic options for Spanish assets are under evaluation.
10 Mar 2021half year report● Neutral
Half-year to 31 Dec 2020: net loss $3.28m (vs $2.50m prior year), with $33.3m net raised from the placement and SPP. Covers the Alcoa 155 PJ contract, Strike HoA and AGIG plant; first gas now expected late 2022/early 2023, later than the earlier mid-2022 target.
4 Mar 2021drilling progress report▲ Good
WE-4 finished its second intermediate section at 3,906m in the Kockatea Shale, with hydrocarbon shows throughout, similar to the WE-2 discovery well. Wireline logging, then 9-5/8 inch casing, come before drilling to the Wagina and Kingia/High Cliff targets.
3 Mar 2021asset acquisition disposition▲ GoodMajor
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.
15 Feb 2021drilling progress report▲ Good
WE-4's first intermediate section reached 2,635m, and 13-3/8 inch casing is being run. Hydrocarbon shows in the Cattamarra Coal Measures are similar to WE-2 and WE-3.
8 Feb 2021drilling progress report▲ Good
WE-4 surface hole was drilled to 1,003m and 20 inch casing cemented. Normal operations resumed as WA lockdown restrictions eased. The 17-1/2 inch section is next, to about 2,550m.
1 Feb 2021drilling progress report● Neutral
WE-4 is at 707m in its 26 inch surface hole, after downtime from a failed mud system part. During the WA lockdown, Strike moved all needed staff to site so drilling continued.
25 Jan 2021drilling progress report● NeutralMajor
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.
20 Jan 2021investor presentation● Neutral
Presentation by David Biggs to a Scottish Enterprise webinar. It shows 987.1m shares, market cap about $241.8m at 24.5c, and no debt, and repeats the certified resources (513 Bscf 2C) and West Erregulla focus. No new information.
4 Jan 2021drilling progress report● Neutral
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23 Dec 2020drilling progress report● Neutral
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15 Dec 2020drilling progress report▲ Good
WE-3 is at 4,024m with 9-5/8 inch casing cemented. Gas shows are consistent through the Dongara and upper Wagina sandstones, and the main Kingia and High Cliff targets are next. Shallower Jurassic and Triassic sands held only residual hydrocarbons.
4 Dec 2020drilling progress report▲ Good
WE-3's second intermediate section reached about 3,534m, shallower than planned because a fault was met higher than predicted. Hydrocarbon shows throughout are similar to WE-2. Wireline logging then casing come next before drilling to the main Permian targets.
1 Dec 2020director officer appointment● Neutral
Group Financial Controller Jani Surjan is promoted to CFO from 1 December 2020, replacing Owain Franks. Franks stays as a senior executive focused on European assets. The company ties the change to its Australian focus and Perth office.