18 July 2018production update▲ GoodMajor
Operator Sacgasco reported Dempsey 1-15 was selling pipeline-quality gas at a combined ~1,300 mcf/d from all four producing zones. Xstate holds a 10% working interest, which was then being sold to Raven.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
17 July 2018asset acquisition disposition▼ Bad
Raven confirms it is extending the XGas acquisition end date to 31 August 2018. It discloses nil cash, about A$238,000 of listed shares, and expected A$200,000 deferred sale proceeds to fund the US$35,000 fee. This raises questions about its ability to pay (inference).
13 July 2018asset acquisition disposition● Neutral
Raven will extend the Dempsey sale closing to 31 August 2018, paying a US$35,000 fee by 20 July. The US$430,000 balance is then due, with A$500,000 in cash or shares 90 days later. Completion slips from the original 15 July date.
30 May 2018investor presentation● Neutral
AGM presentation repeats known facts: the Dempsey sale to Raven (valued at A$1,166,666), Dempsey's ~1,200 mcf/d, Alvares 21% and Singapore judgment enforcement. After the sale Alvares will be Xstate's only Sacramento exposure. Nothing new.
23 May 2018production update▲ GoodMajor
Operator Sacgasco says Dempsey 1-15 will shortly sell gas at about 1,200 mcf/d from the Kione field-level zone plus Zones 2-4 combined. Zone 4 added little (175 mcf/d combined with Zones 2-3). Xstate holds 10%, but is selling it to Raven.
23 May 2018production update▲ Good
Pancontinental re-releases the operator's announcement of Dempsey commercial gas at about 1,200 mcf/d, adding its CEO's comment that more production upside exists. No new information for Xstate's 10% interest.
15 May 2018regulatory community update▼ Bad
Xstate says it learned defendant Tanzil Hidayat is reported to be an undischarged bankrupt since November 2013, and is investigating. It will keep pursuing all three defendants worldwide and may consider defamation action over the social media reports. This raises doubt over collecting the judgment (inference).
10 May 2018asset acquisition disposition▲ Good
Raven has paid the non-refundable US$35,000 deposit for the Dempsey sale. It has until 15 July 2018 to pay the US$465,000 balance, or extend to 31 August for another US$35,000. After completion, Alvares will be Xstate's only Sacramento exposure.
7 May 2018flow test result● Neutral
Pancontinental re-releases the operator's Kione result of 1,000 Mcf/day from Dempsey 1-15, adding a comment from its CEO that the result is pleasing and more zones remain to test. Nothing new.
7 May 2018flow test result▲ GoodMajor
Dempsey 1-15 flowed 1,000 Mcf/day of water-free gas from the field-level Kione sandstone, which the operator calls commercial and says should double its operated gross Sacramento production. A much stronger result than the deeper zones' 140-195 mcf/d. Xstate holds 10%.
7 May 2018asset acquisition disposition● NeutralMajor
Xstate agreed a binding letter of intent to sell its Dempsey interests (via XGas LLC) to Raven Energy for US$500,000 cash plus A$500,000 in cash or Raven shares at A$0.0018. Completion is expected by 15 July 2018. Proceeds are to fund Alvares; it is conditional on due diligence.
7 May 2018asset acquisition disposition● Neutral
Raven Energy confirms its binding letter of intent to buy XGas LLC, holder of Xstate's Dempsey interests, on the same terms: US$500,000 cash plus A$500,000 in cash or shares. Raven also gets a right of first refusal over Xstate's Alvares interest and says it remains suspended pending other acquisitions.
30 Apr 2018quarterly activities report● Neutral
March quarter: Xstate is starting bankruptcy and contempt proceedings in Singapore against two of the three defendants. Cash was $0.531m at 31 March, down from the prior quarter's funding of Dempsey. Dempsey Zone 3 flowed 195 mcf/d. No new acquisition yet; directors deferring pay.
17 Apr 2018director officer appointment● Neutral
Xstate appointed Jordan McArthur, a chartered accountant with 8 years' experience, as joint company secretary alongside David McArthur.
16 Apr 2018flow test result● Neutral
Dempsey 1-15 Zone 3 flowed clean gas at 195 mcf/d with no water, a small rate similar to Zone 2's 140. Zone 4 testing is next, then field-level zones, with flows to be combined. Xstate holds 10%.
23 Mar 2018annual report● Neutral
Corporate governance checklist lodged with the annual report, pointing to the governance statement on pages 19-27. Administrative only, no new business information.
23 Mar 2018annual report● Neutral
Annual report for 2017: the board says the year was not as envisaged, with effort spent on the investor litigation, finding new business and funding Dempsey. Raised $1,222,378 in 2017 at an average 0.8c. Report text is truncated, so financial results are not visible.
12 Mar 2018drilling progress report● Neutral
Test rig mobilised to Dempsey 1-15 and rigging up; the completion will be pulled and replaced to access Zone 3 (400+ feet) and Zone 2. Preparation only, no new result. Xstate holds 10%.
8 Mar 2018drilling scheduled● Neutral
Operator Sacgasco says Dempsey 1-15 testing resumes this month, starting with Zone 3, two gas sands over 400 gross feet, before stimulation is needed. A draft stimulation application is near completion. Changes the earlier stimulate-Zone-2 plan; Xstate holds 10%.
23 Feb 2018production update▲ GoodMajor
Operator reports Sacramento Basin gross gas production up about 70% to over 1,000 Mcf/day (Xstate net about 170), worth roughly US$15,000 a month to Xstate. Gross output is targeted at 1,500 by end March and 2,000 by end June 2018.
31 Jan 2018quarterly activities report● Neutral
December quarter report: judgment of US$33.19m plus interest is registered in Singapore, and Dempsey 1-15 flowed gas from its lowest two zones with stimulation planned. Xstate says it has not concluded a new acquisition, and calls 2017 not as envisaged.
22 Jan 2018regulatory community update▲ GoodMajor
Singapore's High Court registered the WA judgment against the three defendants, so Xstate can enforce it there. With interest the total is US$34,800,894.86. The defendants' 18 January WA appeal date has passed; enforcement awaits a 14-day period after service.
17 Jan 2018production update▲ GoodMajor
Gas sales from Dempsey 1-15 have started at about 140 mcf/day of dry gas. Stimulation permitting is proceeding, with field work expected in the first quarter of 2018. Xstate holds 10%.
17 Jan 2018production update● Neutral
Pancontinental re-releases the operator's announcement that Dempsey 1-15 gas sales have begun, adding that it expects stimulation to significantly improve productivity. Nothing new beyond the operator's release.
8 Dec 2017flow test result● NeutralMajor
Dempsey 1-15's second zone flowed about 140 mcf/d with no water; shut-in pressure topped 6,000 psi. Sacgasco calls it a significant discovery with low permeability, and plans fracture stimulation, with the well put on extended sales production meanwhile. Xstate holds 10%.
6 Dec 2017regulatory community update▲ GoodMajor
The court ordered the three defendants to pay Xstate US$33,187,960 plus interest and its legal costs. Xstate has started enforcement overseas through Clifford Chance. The fourth defendant is not covered, and collecting the money is not assured.
5 Dec 2017regulatory community update▲ GoodMajor
The WA Supreme Court awarded summary judgment to Xstate against three of the four investors in its claim over the unpaid A$25m subscriptions. The amount is not yet stated and written reasons are to follow. This resolves the 4 December hearing in Xstate's favour.
4 Dec 2017flow test result▲ Good
The second zone in Dempsey 1-15 flowed dry gas with shut-in pressure above 6,000 psi, and the first zone's gas is pipeline quality. No flow rate is given yet and commerciality is not stated. Xstate holds 10%.
14 Nov 2017well test result● Neutral
Operator Sacgasco repeats that the lowest Dempsey 1-15 zone flowed clean dry gas, no water, at sub-commercial rates. It is isolated and the next zone is being prepared. Same result as the Pancontinental release.
14 Nov 2017well test result● NeutralMajor
The first, lowest zone in Dempsey 1-15 flowed dry gas to surface without water, but at rates sub-commercial at current gas prices. The zone is thin with poor reservoir quality on logs. Testing moves to the next zone up; Xstate holds 10%.