1 Oct 2010capital raising announcement● Neutral
Letter telling shareholders with addresses outside Australia and New Zealand that they cannot take part in the entitlements issue. Terms are unchanged: 10c shares, $3.0m raise.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
30 Sept 2010capital raising announcement● Neutral
Colour copy of the entitlement issue prospectus already released that day. It restates the terms: 4 shares for every 5 held at 10c to raise about $3.0m, with a free 24c option per 2 shares, underwritten by Argonaut. Closing 27 October.
29 Sept 2010security holder rights change● Neutral
Letter to option holders: to take part in the entitlement issue they must exercise options before the 11 October record date. It repeats the revised timetable, with closing on 27 October.
29 Sept 2010capital raising announcement● NeutralMajor
XState launches a $3.0m entitlement issue: 4 new shares for every 5 held at 10c, with 1 free 24c option (to 30 June 2013) per 2 shares. Up to 30.0m shares are underwritten by Argonaut. It is meant to fund Sidi Daher drilling in December.
29 Sept 2010capital raising announcement● Neutral
Revised timetable for the $3m entitlement issue: record date 11 October, closing 27 October, and new shares and options expected to trade on 8 November 2010. Dates only; terms unchanged.
23 Sept 2010resource reserve update● NeutralMajor
ADX's preliminary estimate for Lambouka is a mean recoverable 309 bcf of sales gas (P50 277 bcf), plus roughly 24 mmbbls condensate if Dougga's ratio applies. This is below the pre-drill 370 bcf success case. Reserves need a successful flow test; re-entry is planned alongside a possible 2011 Dougga appraisal well.
22 Sept 2010contract award● Neutral
ADX sent drilling service tenders for Sidi Daher, targeting a December 2010 spud. XState holds 10%, with ADX 50% and Gulfsands 40%. ADX's own estimate is 80 mmbbls of prospective resource, below XState's 300 mmboe figure.
20 Sept 2010drilling result● Neutral
XState calls Lambouka-1 a gas and condensate discovery with about 23m net pay in the Abiod, but the flow test failed due to well bore problems. The rig left on 15 September. Sidi Daher (10%, over 300 mmboe) is to spud in late Q4 2010.
14 Sept 2010drilling progress report● Neutral
ADX update #10: Tunisian authorities approved suspension, and the well was sealed with 5 cement plugs, a retrievable bridge plug and a corrosion cap. The rig was preparing to leave. Confirms the discovery well is suspended, not abandoned.
8 Sept 2010drilling result● Neutral
The Lambouka-1 partners, including XState (10%), agreed to suspend the discovery well for future re-entry rather than abandon it. The aim is a proper test of the Abiod, and possibly a redrill of the lower section up-dip.
7 Sept 2010drilling result▲ GoodMajor
Lambouka-1 reached 2,786m and ADX reports at least two hydrocarbon zones in the Abiod, likely gas and possibly condensate, with about 23m net pay. Fluid samples and pressure data could not be safely taken. The JV is weighing suspension or abandonment.
7 Sept 2010drilling result● Neutral
Cover note: XState says ADX has made an announcement on the Lambouka well. It carries no content of its own; the substance is in ADX's separate results release.
2 Sept 2010investor presentation● Neutral
Notice that Managing Director Gary Jeffery will join a Boardroom Radio oil and gas roundtable on 2 September. No new results or figures are given.
31 Aug 2010drilling progress report● Neutral
ADX update #8: the 8½-inch hole was drilled through the Abiod to 2,785m, with more drilling fluid losses throughout. Together with the oil shows, this led to a decision to run full wireline logs and a fluid-sampling tool (MDT) after final depth.
30 Aug 2010drilling progress report▲ Good
Drilling through the Abiod found pinpoint yellow fluorescence and oil stains in the mud, which ADX calls encouraging but not proof of producible hydrocarbons. This supports a full wireline and fluid-sampling programme. Depth 2,691m.
27 Aug 2010drilling progress report● Neutral
ADX says Lambouka-1 reached the Abiod target, with circulation fluid losses, higher gas readings and unusually high resistivity. The data is preliminary and cannot yet show whether movable hydrocarbons exist. Wireline logs are due at final depth; hole depth was 2,511m.
25 Aug 2010half year report● Neutral
Half-year to 30 June 2010: net loss $212,029 and cash $1.82m, before the Bombora acquisition (completed 8 July) is reflected. Also shows a $1.0m non-current receivable and deposits received in advance of $77,151.
24 Aug 2010drilling progress report● Neutral
ADX update #7: 9 5/8-inch casing run and cemented at 2,216m, and the blowout preventer pressure tested. Next is drilling the 8½-inch hole into the primary Abiod target. Abiod success case unchanged at 370 bcf gas plus 30 mmbbls liquids.
19 Aug 2010drilling result▼ Bad
ADX reports the secondary Ain Grab sandstone has good porosity but is interpreted as water bearing; hole depth is 2,216m. Second water-bearing zone after the Birsa. Casing is next, then the primary Abiod target.
19 Aug 2010drilling progress report● Neutral
XState says Lambouka-1 is setting casing before drilling the primary Abiod target over the next 4 to 7 days. Sidi Daher (over 300 mmboe, 10% interest) is planned for late 2010, and final offshore 3D seismic is now in hand.
18 Aug 2010admin correction▼ Bad
Corrected update #6 confirms the Birsa was water wet, with about 75m of gross sandstone and a good seal. It also cuts the Abiod P50 liquids estimate from about 80 to 30 million barrels, with 370 bcf gas and 244 mmboe P10 upside unchanged.
17 Aug 2010drilling progress report● Neutral
ADX update #6: 13 3/8-inch casing set at 1,469m and the 12¼-inch section drilled to 2,024m, with the Ain Grab marker close to prediction. The Abiod success case is put at 370 bcf gas plus liquids; the liquids figure is corrected in the next release.
16 Aug 2010drilling result▼ BadMajor
Lambouka-1 hit the first target, the Birsa sandstone, at 1,635m, but logs show it is water bearing, which ADX calls disappointing. The deeper primary Abiod target is still to be drilled. XState holds 10%.
16 Aug 2010director officer appointment● Neutral
Board plans 1,000,000 options at 24c, expiring 30 June 2013, for Corporate Director Brett Mitchell, plus 200,000 for a role still being negotiated. The Mitchell grant needs shareholder approval at the next general meeting.
10 Aug 2010drilling progress report● Neutral
Forwards ADX update #5: the 16-inch section reached 1,476m, deeper than the planned 1,341m, to set casing in competent shale. This shale is described as a positive sign for trapping any hydrocarbons in the Birsa sandstone below.
3 Aug 2010investor presentation● Neutral
Notice of an audio broadcast, recorded 2 August, of Managing Director Gary Jeffery presenting XState's offshore oil and gas program while Lambouka-1 drills. No new results are stated.
3 Aug 2010drilling progress report▼ Bad
ADX update #4: 53 hours of bad weather and a blowout preventer connection problem needed modifications, with reduced or zero rig rates meanwhile. Drilling resumed on 2 August in 16-inch hole, so the well is running behind the 35-day estimate.
27 July 2010drilling progress report● Neutral
ADX update #3: 20-inch casing was run and cemented at 922m, then bad weather paused work for about 48 hours. The first hydrocarbon-bearing target, the Birsa sandstone, is now expected in a later hole section than previously stated.
20 July 2010drilling progress report▼ Bad
ADX update #2: the 26-inch section was drilled to 927m, but running casing was delayed by rig power repairs, with the rig rate at zero from 18 to 19 July. The rig is working again; no hydrocarbon results yet.
13 July 2010investor presentation● Neutral
Post-reinstatement presentation reframes XState as an oil and gas explorer. Net Lambouka resource is 31 mmboe, with last price $0.30 and about $3.0m cash and no debt. Two 2010 wells are planned, with Dougga appraisal in 2011.