TAMA OILG ReleASXase asd: 28 January 28 28
January 2016
28 January 2016
December Quarterly Activity Report
Summary
The Company is evaluating new business opportunities.
On 20 October 2015, Tamaska announced completion of the demerger of its Canadian assets via an in-specie distribution of one TMK Montney Ltd share for every ten Tamaska Shares held.
Tamaska provided the maximum possible working capital to TMK Montney Ltd and consequently announced an Entitlement Issue to raise $2.14 million on 19 October 2015. Due to oversubscription for the Shortfall shares the Directors approved to place a further 175 million shares at 0.2cents per share to raise $350,000 and further augment working capital.
The resulting Company's capital structure is now: 1,960,000,000 Ordinary Shares
180,000,000 Unlisted Options (exercisable at 0.92 cents by 31 March 2019)
Montney Project, British Columbia - (TMK 40% WI)
On 20 October 2015, Tamaska announced completion of the demerger of its Canadian assets via an in-specie distribution of one TMK Montney Ltd share for every ten Tamaska Shares held. As of the demerger, Tamaska had acquired a total of 24,745 net acres at a cost of approximately A$3.7 million (~A$147/acre).
Whilst the Montney Resource Play is generally regarded as one of the most economically robust in North America, the Directors resolved that given the current market conditions and commodity prices the project would be better able to progress in a private company.
The Directors are of the view that the following advantages made the demerger attractive:
Shareholders retain their current shareholding in Tamaska and also received a proportional share holding in TMK Montney with a book value of 0.68 cents per Tamaska Share held.
Tamaska will be free to pursue new business opportunities likely to achieve greater recognition on the ASX, without diluting Shareholder's interests in the Montney Asset.
In an unlisted structure, the underlying value of the Montney Asset can be unlocked over time and with low overheads and minimal dilution to shareholders. In particular TMK Montney is better positioned to be able to attract a partner to fund drilling and appraisal.
Fusselman Project Well, Texas - (TMK 12.5%)
The Fusselman Well, Clayton Johnson #3F, operated by Marshfield Oil & Gas, was drilled to its total depth of 9,883 feet on 3 January 2013. Tamaska holds a 12.5% working interest in the Fusselman Project in Borden County, Texas.
Production commenced from the #3F well on 23 January 2013. Production from the well is with a pump jack (nodding donkey) and is a mixture of oil and formation water. The well has experienced some downtime in the last month or two due to cold weather. On steady production the oil rate is reasonably steady at approximately 17bopd on a gross basis and forecast to decline very slowly. The Operator is working to minimise costs and maximise uptime.
September 15 Quarter | December 15 Quarter | March 16 Quarter | |
Actual | Actual | Forecast | |
Net Produced bbls | 190 bbls | ~132 bbls | ~120 bbls |
Net Revenue after Royalty and well head taxes (US$) | $6,145 | ~$4,588 | ~$2,500 |
*Subject to final costs and sales off take figures
West Klondike Discovery, Louisiana - (TMK 10.2% WI)
The Wilberts Sons LLC #1 exploration well on the West Klondike Prospect in Louisiana drilled to its total depth of 10,900ft on 13 December 2012. Electric logs confirmed it as a discovery well with material net pay in 2 separate target horizons, with 4ft in the Lario sands, 6ft in the U Nod Blan and 35ft in the Lower Nod Blan sands. Production from the Lower Nod Blan commenced in September 2014.
Due to non-participation by one of the JV partners in the facilities and pipeline program, Tamaska has increased its contributing and beneficial interest to 11.4%. This increase will revert back to the original owner following 400% recovery of the incremental programs cost to the Company.
The well was shut in on 15th June 2015. A recompletion attempt in September/October to restore production from the lowermost zone was not successful with the Zone having been fully depleted. A thin gas zone was put on production in November 2015 and depleted rapidly over December and January. The wet lands around the well site are currently close to flood level and due to limited site access the well is shut in. The Operator is planning to recomplete to the Lario oil zone in the coming quarter.
September 15 Quarter | December 15 Quarter | March 16 Quarter | |
Actual | Actual | Forecast | |
Net Produced Condensate | 0 bbls | ~150 bbls | ~350 bbls |
Net Produced Gas | 0 MMscf | ~2.1MMscf | ~0 MMscf |
Revenue net of sales tax and Royalty | ~US$0 | ~US$125 | ~US$2,700 |
*Subject to final sales off take figures
Duvernay Shale and Rock Creek
The remaining land was demerged with the Montney project to TMK Montney Ltd.
Tenement Summary
At 31 December 2015 the Company held the following interests in tenements:
Project | Percentage Interest | Number of Tenements |
Fusselman Project | 12.5% | 7 |
West Klondike | 10.2% | 6 |
The Company has provided detailed tenement information in Schedule 1.
Corporate
Cash Position at 31 December 2015
The Company had a closing cash balance of A$2.415 million at 31 December 2015.
Renounceable Rights Issue, Shortfall Placement and Placement
On 19 October 2015 the Company announced a renounceable entitlement issue of 3 Shares for every 2 Shares held by those Shareholders registered at the Record Date (27 October 2015) at an issue price of 0.2 cents per Share to raise up to $2,142,000 (based on the number of Shares on issue as at the date of the Prospectus). The shortfall placement was completed on 20 November 2015.
Due to oversubscription for the Shortfall shares the Directors approved to place a further 175 million shares at 0.2cents per share to raise $350,000 and further augment working capital. This was completed on 9 December 2015.
The resulting Company's capital structure is now: 1,960,000,000 Ordinary Shares
180,000,000 Unlisted Options (exercisable at 0.92 cents by 31 March 2019)
AGM
The Tamaska Annual General Meeting was held at 10am on 25 November 2015 on Level 7, 1008 Hay Street, Perth WA 6000. All Resolutions were passed on a show of hands.
Cost Control Measures
Due to the market conditions and commodity prices and to maintain the maximum working capital possible, the Board has agreed to further reduce hours and fees charged to Tamaska and TMK Montney by 1/3.
For and on behalf of the Board
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001, 01/06/10.
Rule 5.3
Name of entity |
Tamaska Oil & Gas Ltd |
ABN | Quarter ended ("current quarter") |
66 127 735 442 | 31 December 2015 |
Cash flows related to operating activities | Current quarter $A'000 | Year to date $A'000 | |
1.1 | Receipts from product sales and related debtors | 8 | 81 |
1.2 | Payments for (a) exploration & evaluation
| - - (24) (155) | (39) - (47) (245) |
(e) cash demerged | (168) | (168) | |
1.3 | Dividends received | - | - |
1.4 | Interest and other items of a similar nature received | 2 | 3 |
1.5 | Interest and other costs of finance paid | - | - |
1.6 | Income taxes paid | - | - |
1.7 | Other - Warren Tax | - | - |
Net Operating Cash Flows | (337) | (415) | |
Cash flows related to investing activities | - | (431) | |
1.8 | Payment for purchases of: | ||
(a) prospects | |||
(b) equity investments | - | - | |
(c) other fixed assets | - | - | |
1.9 | Proceeds from sale of: | - | - |
(a) prospects | |||
(b) equity investments | - | - | |
(c) other fixed assets | - | - | |
1.10 | Loan repayment to other entities | - | - |
1.11 | Proceeds from loans | - | - |
1.12 | Other- Perity Share of Acreage Sold | - | - |
Net investing cash flows | - | (431) | |
1.13 | Total operating and investing cash flows (carried forward) | (337) | (846) |
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 1
Tamaska Oil and Gas Limited issued this content on 28 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 28 January 2016 06:21:34 UTC
Original Document: http://tamaska.com.au/media/articles/ASX-Announcements/20160128-December-Quarterly-Activity-and-Cashflow-Report-307/December-Quarterly-Activity-and-Cashflow-Report.pdf
