TAMA OILG ASX Release Date: 30 October 2015
September Quarterly Activity Report
Summary
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.
Tamaska is currently debt free, with cash holdings of $0.27 million at 30 September 2015 and production income from the Fusselman and West Klondike projects.
Tamaska Oil and Gas Projects
Montney Project, British Columbia - (TMK 40% WI)
On 9 September 2014, Tamaska announced its entry into the Montney Resource Play in British Columbia, Canada with an initial acquisition of a net 3,000 acres of land. 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).
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.
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 will 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. After approximately 50% downtime in April and May due to weather in Texas, since June the well has had good uptime and the oil rate has been reasonably steady at approximately 17bopd on a gross basis.
June 15 Quarter | September 15 Quarter | December 15 Quarter | |
Actual | Estimated* | Forecast | |
Net Produced bbls | 130 bbls | ~188 bbls | ~180 bbls |
Net Revenue after Royalty and well head taxes (US$) | $6,540 | ~$4,350 | ~$4,500 |
*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. The Lower most gas zone will be shut off in October and the next gas zone put on production.
June 15 Quarter | September 15 Quarter | December 15 Quarter | |
Actual | Actual | Forecast | |
Net Produced Condensate | 54 bbls | ~0 bbls | ~38 bbls |
Net Produced Gas | 6.4 MMscf | ~0 MMscf | ~4 MMscf |
Revenue net of sales tax and Royalty | US$13,380 | ~US$0 | ~US$8,6000 |
*Subject to final sales off take figures
Duvernay Shale and Rock Creek Update
Tamaska holds a 16% interest in Rock Creek Oil rights and 8% interest in Duvernay Shale rights in approximately 25 licences in Central Alberta, Canada. Together with JV partners, the Company selectively relinquished some lower value acreage to the Crown as rent fell due during the quarter. The remaining land has been demerged with the Montney project to TMK Montney Ltd.
Tenement Summary
At 30 September 2015 the Company held the following interests in tenements:
Project | Percentage Interest | Number of Tenements |
Montney Resource Play * | 40% | 37 |
Fusselman Project | 12.5% | 7 |
West Klondike | 10.2% | 6 |
Duvernay Shale and Rock Creek* | Duvernay 8% Rock Creek 16% | 25 |
The Company has provided detailed tenement information in Schedule 1.
*- Demerged to TMK Montney Ltd effective 20 October 2015
Corporate
Cash Position at 30 June 2015
The Company had a closing cash balance of A$0.27 million at 30 September 2015.
Unmarketable Parcel Sale Facility
On 10 June 2015 the Company announced the establishment of a share sale facility for holders of less than a marketable parcel of shares. The closing date for Share Retention forms was 29 July 2015. In total, 612 shareholders (representing 8,805,677 shares) participated in the facility and received the proceeds from the sale of these shares by the Company.
Listed Options Expired
32,600,000 listed options, exercisable at 50c per option, expired on 17 August 2015.
Shareholders Approved the Demerger of TMK Montney Ltd
At an EGM on 15 September 2015, the Shareholders approved the demerger of the Canadian Assets by in-specie distribution of 1 TMK Montney Ltd share for every 10 Tamaska shares held. The demerger was effective 20 October 2015.
Annual Financial Report
The Company's Annual Financial report was released on 28 September 2015.
Renounceable Rights Issue
On 19 October 2015 the Company announced a renounceable rights 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 $2,140,000 (based on the number of Shares on issue as at the date of the Prospectus)
AGM Date
The Tamaska Annual General Meeting will be held at 10am on 25 November 2015 on Level 7, 1008 Hay Street, Perth WA 6000.
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 | 30 September 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 | 73 | 73 |
1.2 | Payments for (a) exploration & evaluation
| (39) - (23) (90) | (39) - (23) (90) |
1.3 | Dividends received | - | - |
1.4 | Interest and other items of a similar nature received | 1 | 1 |
1.5 | Interest and other costs of finance paid | - | - |
1.6 | Income taxes paid | - | - |
1.7 | Other - Warren Tax | - | - |
Net Operating Cash Flows | (78) | (78) | |
Cash flows related to investing activities | (431) | (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) | (431) | |
1.13 | Total operating and investing cash flows (carried forward) | (509) | (509) |
+ See chapter 19 for defined terms.
30/9/2001 Appendix 5B Page 1
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