27 Mar 2017price query● Neutral
ASX queried a fall in Xstate's price from 1.4c to an intraday low of 1.1c on heavy volume, asking whether it holds unannounced information. This is ASX's letter only; Xstate's reply is not included.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
1 Mar 2017farm in farm out agreement▲ GoodMajor
Xstate and Sacgasco farm out a 10% interest in the Alvares gas discovery to Bombora, which funds 13.33% of the next well up to a US$10m cap. Xstate drops from 25% to 21%; Bombora also pays US$20,000 toward past lease rentals.
1 Mar 2017farm in farm out agreement● Neutral
Sacgasco's own announcement of the same Alvares farmout to Bombora: 10% for funding 13.33% of the next well up to US$10m. Xstate goes to 21%, Sacgasco to 69%. It repeats Xstate's release, adding the 1982 well and 2.4 Tcf background.
21 Feb 2017capital raising announcement● NeutralMajor
Investors have remitted about A$19.3m, 77% of the A$25m commitment; the balance is still delayed. The LA vendor has given Xstate extra time past the 17 February closing. No new closing date was stated.
21 Feb 2017other● Neutral
ASX announced Xstate's trading suspension will lift from the start of trading on 22 February 2017 after its announcement. Administrative notice only.
17 Feb 2017other▼ BadMajor
Xstate requested a voluntary suspension of trading pending an announcement on its capital raising and US acquisition, expected by 21 February 2017. This comes as the investor funding is overdue and the 17 February closing date arrives.
10 Feb 2017capital raising announcement▼ BadMajor
The Asian investors are now in formal breach of their subscription agreements and have been issued breach notices. Maybank gave an irrevocable undertaking that the full A$25m will reach Australia by 15 February. Xstate still expects to close the LA deal on 17 February.
10 Feb 2017joint venture update▲ Good
Operator Sacgasco says Bombora raised its Dempsey farm-in from 10% to 20%, funding 32.5% of the well up to about A$5.2m. Xstate's 10% is unchanged. Drilling is planned for April-May 2017. This is Sacgasco's announcement, not Xstate's.
31 Jan 2017quarterly activities report● Neutral
December 2016 quarter: cash fell to $1.457m after a US$625,000 non-refundable deposit on the LA purchase. Net gas was 1,055 mcf (1,168 prior). The investor funding deadline was pushed to 10 February. Dempsey-1 is scheduled for April-May 2017.
25 Jan 2017capital raising announcement▼ Bad
The deposit is still not received, with Maybank citing regulatory delays. Xstate extended the deadline for the balance of the $25m from 25 to 31 January 2017. Settlement of the Sansinena purchase remains 17 February, subject to shareholder approval.
17 Jan 2017capital raising announcement▼ Bad
The $1.25m deposit is still unpaid. A signed Maybank transfer form exists but needs Indonesian Government approval, with no confirmed date. Xstate says it has no reason to believe the deposit won't arrive.
28 Dec 2016capital raising announcement▼ Bad
The $1.25m deposit on the $25m placement, due 29 December, was delayed by bank holidays; investors were given until 6 January 2017. Xstate says closing the Los Angeles acquisition by 17 February is unaffected.
22 Dec 2016asset acquisition disposition▲ GoodMajor
Xstate finished due diligence and signed a purchase agreement for a 24.5% interest in the Sansinena and East LA oil fields for US$13m. Closing moved to 17 February 2017, effective date to 1 January. Probable and possible reserves were cut 5-10%; proven unchanged.
21 Dec 2016price query● Neutral
Xstate answered ASX's follow-up query on the 19 December $25m raising. It said the news was price-sensitive and it first knew of it at 5.06pm WST on 16 December, and confirmed compliance with Listing Rule 3.1.
20 Dec 2016auditor change● Neutral
KPMG resigned as auditor and BDO was appointed. Xstate says the change was at its request and based solely on audit cost.
19 Dec 2016capital raising announcement▲ GoodMajor
Xstate signed binding letters of offer to raise $25m by placing about 658m shares at 3.8c with four Asian investors. That is 51.4% of the enlarged capital. Needs shareholder approval; 5% deposit due by 29 December, balance by 25 January 2017. Mainly funds the Los Angeles acquisition.
14 Dec 2016price query● Neutral
ASX queried a rise in the share price from 1.4c to an intraday 1.9c with heavy volume. Xstate said it knew of no unannounced information and pointed to the pending Los Angeles acquisition as a possible explanation.
7 Dec 2016joint venture update● Neutral
Due diligence on the Los Angeles oil fields deal is extended to 16 December after delays getting field data. Xstate says it still aims to close by 3 February 2017 and is gaining confidence in the asset. No change in terms.
15 Nov 2016resource reserve update▲ GoodMajor
Xstate says the Sansinena deal has net 1P reserves of 6.2 MMboe and 2P of 9.9 MMboe, certified by NSAI, about US$2.10/bbl of 1P. Production is 500 bopd, targeted at over 1,100 bopd by close. Still subject to due diligence.
7 Nov 2016director officer appointment● Neutral
Managing Director Damiano bought 2,564,707 shares on market for about $33,365, lifting his holding to 3,734,333 shares. Routine director interest notice.
4 Nov 2016asset acquisition disposition▲ GoodMajor
Xstate signed a letter of intent to buy a 24.5% working interest in the Sansinena and East Los Angeles oil fields for US$13.0m, with about 450 bopd production. Subject to funding and due diligence, with financial close by 3 February 2017. Its first producing-asset deal since Sunset ended.
31 Oct 2016quarterly activities report● Neutral
September 2016 quarter: cash $2.35m. Net gas recovered to 1,168 mcf (187 prior). Preliminary due diligence and deal structuring are under way on an attractive producing California acquisition, unnamed. AMI interest now shown as 24%.
1 Sept 2016half year report● Neutral
Interim report to 30 June 2016. Shares on issue were 621.8m after the $3m placement and the 29 June conversion of the $125,000 note into 25.5m shares at 0.5c. Strategy unchanged: farm out Sacramento prospects and buy low-risk production. Financial figures were not shown in the text.
15 Aug 2016farm in farm out agreement▲ GoodMajor
Xstate farms out up to 6% of its 30% interest in the Sacramento Basin AMI to Bombora Natural Energy, which funds up to A$400,000 of lease costs for a 20% interest across the partners. Xstate falls to 24% and gets up to A$120,000.
29 July 2016quarterly activities report● Neutral
June 2016 quarter: the $3m placement was completed and Sunset was dropped. Net gas fell to 187 mcf (1,519 prior) as the joint venture shut in wells on low prices and pipeline issues. Acquisition talks are described as advanced; no deal named.
14 June 2016capital raising announcement● Neutral
Appendix 3B for the 300,000,000 shares issued 14 June at 1.0c for working capital, under the 31 May approval. Shares on issue rise to 596,327,118. Administrative paperwork for the $3m placement.
What it means for a shareholder
300m new shares at A$0.010 to raise about A$3.0m. That's 50% dilution: every existing holder's slice gets 50% smaller. If you held A$1,000 of shares (100,000 at the issue price), your slice goes from 0.0337% to 0.0168% of the company. To keep it you'd need 101,239 more shares - about A$1,012 at the issue price.
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14 June 2016capital raising announcement▲ GoodMajor
Xstate placed 300 million shares at 1.0c to raise $3.0m, the raising shareholders approved on 31 May. Sanston clients took it, reported as 3x oversubscribed. Funds are mainly for California acquisitions; due diligence on producing oil assets continues, none named.
What it means for a shareholder
300m new shares at A$0.010 to raise about A$3.0m. That's 50% dilution: every existing holder's slice gets 50% smaller. If you held A$1,000 of shares (100,000 at the issue price), your slice goes from 0.0337% to 0.0168% of the company. To keep it you'd need 101,239 more shares - about A$1,012 at the issue price.
Create a free account to see this worked out for your own holding.
1 June 2016investor presentation● Neutral
Xstate says it is doing due diligence on producing California oil assets and that shareholders approved on 31 May a raising of up to $3 million. No named asset or deal terms yet.
31 May 2016director officer appointment● NeutralMajor
Executive director Cosimo Damiano, ex-Mercuria, becomes Managing Director to pursue and fund the strategy of adding producing oil and gas assets. Chris Hodge, MD since 2014, stays as a non-executive director.
13 May 2016investor presentation● Neutral
AGM presentation: 296m shares, market cap about A$4.1m at 1.4c. Repeats the strategy of buying producing California assets and says other deals are being pursued. Largely repeats known facts.