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.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
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.
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%.
3 Nov 2017regulatory community update▲ Good
The defendants missed the 2 November deadline to file affidavits against Xstate's summary judgment application. Xstate will proceed on the basis they will not oppose with evidence. The A$25m claim heads to the 4 December hearing.
1 Nov 2017drilling progress report● Neutral
Sacgasco says Dempsey 1-15 testing preparations continue, but initial equipment tests meant some safety-critical equipment had to be replaced. Perforating of the lowest zone still needs a clean-out and cement bond log. Xstate holds 10%.
20 Oct 2017capital raising announcement● NeutralMajor
Xstate raised $752,378 (before costs) via 62.7m shares at 1.2c, a 17% discount to the 5-day average price. Funds go to its Dempsey 1-15 testing share, Alvares re-entry assessment and leasing. Shares on issue rise to about 783m.
What it means for a shareholder
62.7m new shares at A$0.012 to raise about A$752,378. That's 8.0% dilution: every existing holder's slice gets 8.0% smaller. If you held A$1,000 of shares (83,333 at the issue price), your slice goes from 0.0116% to 0.0106% of the company. To keep it you'd need 7,249 more shares - about A$87 at the issue price.
Create a free account to see this worked out for your own holding.
19 Oct 2017drilling progress report● Neutral
Sacgasco says the completion rig has reached Dempsey 1-15 after a successful re-completion of a nearby producing JV well. Testing will start from the bottom zone. No new result; Xstate holds 10%.
13 Oct 2017regulatory community update● Neutral
At a 12 October hearing the WA Supreme Court gave the defendants until 2 November to file affidavits, ruling no further extension. The summary judgment hearing moves from 21 November to 4 December 2017. Resolution of the A$25m claim slips slightly.
9 Oct 2017investor presentation● Neutral
Xstate's update repeats that Dempsey 1-15 reached 2,970m and testing starts late October. It notes Xstate's 24% in the wider Dempsey trend and 21% in Alvares, where re-entry is being assessed. No new results.
5 Oct 2017regulatory community update● Neutral
Xstate says the defendants filed no affidavits despite agreeing the revised timetable, and asked for another four weeks, which Xstate declined. It says they have not outlined any defence. Dispute over the A$25m continues.
4 Oct 2017drilling progress report● Neutral
Sacgasco says the drill rig is leaving Dempsey 1-15 and a smaller workover rig will run the tests. Perforating for the first flow test is expected towards the end of October. Gas meter station is being readied; Xstate holds 10%.
27 Sept 2017regulatory community update● Neutral
Xstate named the four defendants and agreed a 7-day extension for their affidavits, to 3 October, rejecting a requested four weeks. The 21 November hearing date was unchanged. A procedural delay in the A$25m claim.
18 Sept 2017well test result▲ GoodMajor
Wireline logs on Dempsey 1-15 support gas-saturated sands matching the earlier shows, and a 5½-inch liner is cemented. Flow testing of multiple zones should start in 2-3 weeks. Commercial flow rates remain unproven; Xstate holds 10%.
13 Sept 2017drilling result▲ Good
Dempsey 1-15 finished drilling at 2,970m, shallower than the planned 3,200m, after two more high gas show zones. Wireline logging is next to assess the reservoirs before flow testing. Xstate holds 10%.
8 Sept 2017half year report● Neutral
Half-year report to 30 June 2017: cash of $0.649m, no debt, 626.8m shares. Gross production was 127,223 million cubic feet (14,895 net to Xstate). Xstate is still seeking acquisitions and pursuing the defaulting investors, with timing uncertain.
8 Sept 2017drilling progress report▲ Good
Sacgasco says Dempsey 1-15 drilled through hard shale into a sandstone with what it calls the most significant gas shows so far, at 2,760m. About 440m remains to drill. Still unconfirmed until wireline logs; Xstate holds 10%.
5 Sept 2017regulatory community update● Neutral
The WA Supreme Court set a timetable for Xstate's summary judgment application against the investors: defendants' affidavits by 26 September, written submissions by 7 November, and a hearing on 21 November 2017. A ruling is therefore still some months away.
4 Sept 2017drilling progress report● Neutral
Dempsey 1-15 is below 2,615m with more gas shows, but about 9-10 days behind schedule. Cost caps for farm-in parties are reached, so all partners now fund their own shares, Xstate 10%. Completion costs will be estimated after logging.
31 Aug 2017drilling progress report▲ Good
Sacgasco says Dempsey 1-15 is below 2,440m with further significant gas shows, despite heavier drilling mud. Shows have slowed drilling. Their meaning awaits wireline logs at about 3,200m. No new result; Xstate holds 10%.