Each one in plain English, with the numbers worked through for a shareholder.
19 June 2024capital raising announcement● NeutralMajor
Company raised $750,000 via a placement of 250M shares at $0.003, plus a 1-for-4 entitlement offer at the same price to raise up to about $765,000. Funds go to lifting production, new opportunities and working capital. Holland also resigned from the board on 14 June.
What it means for a shareholder
250m new shares at A$0.003 to raise about A$750,000. That's 22% dilution: every existing holder's slice gets 22% smaller. If you held A$1,000 of shares (333,333 at the issue price), your slice goes from 0.0386% to 0.0299% of the company. To keep it you'd need 96,472 more shares - about A$289 at the issue price.
12 June 2024director officer appointment● NeutralMajor
Lloyd Flint becomes Non-Executive Chairman and Ricardo Garzon Rangel joins the board. COO Doug Holland's employment ended 7 June; Larry Liu to step down 31 Aug. Director fees cut to $36,000 a year; McGoldrick becomes part-time executive director at $1,250/day.
Hall Chadwick replaced BDO as auditor from 5 June 2024, after BDO resigned with ASIC consent. The company says the change is part of a review of corporate administration costs.
3 June 2024director officer appointment● NeutralMajor
Rory McGoldrick (lawyer, long-term shareholder) and Iain Smith (petroleum geoscientist, ex-Norwest Energy) joined the board after the 31 May AGM. Tony Peng, John Kenny and Zane Lewis left the board. A significant board overhaul.
March 2024 quarter revenue was A$696k, down from A$1.08M, with production 90 boepd (93 prior) and oil price US$73.52 (from US$85.24). Cash fell to US$0.173M, no debt. Bast workovers done; talks continue with potential farm-in partners for Varn.
Company advises the AGM will be held on 31 May 2024, with director nominations due by 19 April 2024. Election of directors is on the agenda. Administrative notice.
Appendix 4G checklist for the year ended 31 December 2023, pointing to the governance statement on the website, signed by Zane Lewis. Administrative filing with no new information.
Corporate governance statement current at 28 March 2024, accompanying the FY2023 annual report. It notes departures from recommendations, including no women on the board and a full-board nomination committee. Administrative; no operational news.
FY2023 working-interest sales revenue was US$2,771,659 on net production of 44,579 boe, with the December quarter averaging 93 boepd. Cash at year end was about $219,000. JVU#6 at Varn kept showing zero decline, and the waterflood expansion was still only planned.
December 2023 quarter revenue was A$1.08M, up 3%, but net production fell to 93 boepd from 104. Cash was A$0.33M, no debt. Varn waterflood still has two surface wells awaiting deepening; no new drilling reported.
September 2023 quarter revenue was A$1.05M, with net production down to 104 boepd from 137. Cash fell to A$0.35M, no debt. A cheap White Hat 2106 workover lifted that well's output 8%; Varn waterflood expansion remains pending.
Half-year report to 30 June 2023: net production averaged 146 boepd and realised oil price was US$74.44. Directors now include John Kenny after James Allchurch's resignation. Financial statements are truncated, so no profit or cash figures are given here.
June 2023 quarter revenue was A$1.29M, down from A$1.43M, with net production 137 boepd (155 prior) on natural decline and maintenance. Cash was A$0.54M, no debt. JVU#6 at Varn shows no decline since February; Varn waterflood still awaits deepening of two wells.
John Kenny, a lawyer, joined the board as non-executive director from 2 July 2023, replacing departed James Allchurch. His interest notice shows about 33M shares held through related entities (17.07M and 15.86M).
Non-executive director James Allchurch resigned from the board, effective 30 June 2023. The board thanked him for his service, and no reason was given.
March 2023 quarter revenue was A$1.43M, up 9%, with net production 155 boepd, up 19% on the 130 boepd in December. Cash fell to A$0.57M from A$1.1M, no debt. Varn JVU#6 primary oil and Group wells are credited; two Varn surface wells still await deepening.
Appendix 4G checklist for the year ended 31 December 2022, pointing to the corporate governance statement on the company website. Administrative filing with no new information.
Corporate governance statement, current at 28 March 2023, accompanying the annual report. It says the company departs from several recommendations, including no women on the board, no board skills matrix, and a nomination committee that is the full board. Administrative; no operational news.
Annual report for 2022: WI sales revenue was A$8.56M (US$5.65M) and net production 73,210 boe, with December quarter at 130 boepd. Three Group wells are on sales at 35 bopd sustained, and Varn's first producer found unexpected primary oil. Largely restates known results.
Varn's first producer, JVU#6, unexpectedly made primary oil: about 80 bopd initially, settling at 30-40 bopd plus gas, in a field thought depleted of primary oil. Company says nearby producers may also yield bonus oil; the waterflood is still to start.
10,202,115 shares were issued in lieu of cash to settle payment for services. No cash raised and no value or price stated in the text. Small issue, about 1% of shares on issue.
December quarter WI revenue was A$1.31M (down from A$2.13M), with net production at 130 boepd, and cash fell to A$1.1M, no debt. Group wells initially made 42 bopd, now sustained at 35 bopd. Two Varn wells are completed, two more await deepening.
All three Group wells (15A, 16A, 23A) are now on sales, producing about 42 bopd combined. Total company production is currently 235 boepd net, up from 130 boepd in the December quarter. Gas to be measured for possible sales.
Group 15A is connected to sales and has produced 25-30 bopd over the past week, at a cost of about US$60,000. Wells 16A and 23A await power connection, expected within two weeks. A modest result compared with total production of 130-196 boepd.
Third Group Prospect workover, Group 15A, swabbed about 40 barrels of oil over nine hours at a 60-70% oil cut, and flowed briefly on its own. All three wells go on pump, with stable rates expected mid-November 2022.
September quarter WI revenue was A$2.13M, down from A$2.63M, with net production at 164 boepd (196 prior) due to scheduled maintenance. Cash was A$3.3M, no debt. Varn drilling has started and the first two Group wells have oil, with flow rates pending.
A larger rig has moved onto the first Varn well, JVU#11WSW, the water supply well for the waterflood, and will take it to 4,900ft. Part of the 11-well programme; no new results.
Varn waterflood drilling has begun: four surface wells are cased to about 300ft and a larger rig will deepen two to roughly 7,000ft. Locations are 90% ready, with production lines 75% and injection lines 30% done. Completion is now scheduled for December 2022; production is expected to contribute in 2023.
