31 January 2017
DECEMBER 2016 QUARTER ACTIVITY REPORTHIGHLIGHTS OF THE QUARTER
- $9.3m in cash received
- Warro 2017 budget approved by Alcoa
- David Messina appointed new Managing Director
- Kevin Hart appointed Company Secretary
- Reduction in corporate overheads
On January 11th Transerv received $9.3 million by successfully qualifying its portion of the Warro Project under the Australian Government Research and Development Tax Incentive Programme.
This provides the company with funding with which to continue work on the Warro Project and progress other oil and gas opportunities which will be the focus of the company in 2017.
WARRO GAS PROJECT UPDATEThe 2017 Work Programme and Budget for the Warro project has been approved by Alcoa of Australia as part of the farmin project.
Data gathered from the 2015/16 drilling and testing campaign are now being analysed to gain greater understanding of the complex nature of the Warro reservoir and identify ways to increase gas production while keeping water production to manageable levels. This process will assist the Joint Venture to determine the next steps required to demonstrate the potential commercial viability of the Warro Project.
At the end of 2016, Alcoa Corporation announced via their Form 8-K lodged in the USA, that it would impair its after tax and non-controlling interest in the Warro Project. Transerv is presently reviewing its carrying value for these assets in the normal course of preparing the Company's half year results.
The final items regarding the rehabilitation of the Warro 3D seismic lines in the Watheroo National Park and Big Soak have now been completed and the JV security bond of $119,000 held under Ministerial Statement 849 has been released.
Environmental Monitoring and Community Consultation continued throughout the quarter as per the commitments of the Environmental Plans approved by the DMP.
PERTH BASINTranserv has continued to seek new opportunities in the Perth Basin during the past quarter.
Xanadu
Farmout efforts to drill the 160 million barrel Xanadu Prospect in TP-15 during 2017 are progressing. Transerv has previously agreed to an extension of the completion of this farmout given that Triangle Energy (Global) Limited has agreed to fund 40% of the well to earn 30% and that Transerv would fund 20% to earn 15% conditional on the balance of the well being funded by February 15, 2017.
Origin Asset Sale
While Transerv and its funding partners presented in good faith a competitive, fully funded bid for the Origin Energy Limited's ('Origin') Perth Basin Assets as required by the sales process, on December 6th Origin announced without warning that all the assets had been withdrawn and the sale cancelled.
Transerv was able to attract strong financial support during the course of the Origin process and is well placed to leverage this into new opportunities in 2017.
CORPORATEReduction in Corporate Overheads
Once one off costs for redundancies and the costs incurred in the Origin process have been paid corporate overheads have been reduced by approximately 25% per annum.
Appointment of Managing Director
On 7 December 2016, the company announced the appointment of Mr David Messina as Transerv's new Managing Director. Mr Messina was most recently the Managing Director of Hutton Energy Ltd, a London-based E&P company with assets in the UK and Poland. Since returning from London in 2016 he joined the board of Transerv in May 2016 and has been advising Transerv on its M&A activities. Transerv Co-Founder Stephen Keenihan will step back from his day-to-day duties with the company and has resigned from his positon as Managing Director, but will continue on as a director and adviser.
Appointment of Company Secretary
On 30 November 2016, the company announced the appointment of Kevin Hart as Company Secretary. Mr Hart is a Chartered Accountant with over 30 years' experience in accounting and the management and administration of public listed entities in the mining and exploration industry. He is currently a partner in Endeavour Corporate an advisory firm which specialises in the provision of company secretarial services to ASX listed entities.
FINANCIALCash position
At the end of the December 2016 quarter, the Transerv Energy consolidated group had a closing balance of $949,000 as set out in the Appendix 5B.
As at 31 Jan 2017 Transerv Energy consolidated group had a closing balance of $9,922,294.
For and on Behalf of the Board
As at 31 December 2016, Transerv Energy Limited has an interest in the following tenements:
AUSTRALIAN LAND INTERESTS Lease or Project Legal Description Interest Location Rights Change during the quarter | ||||||
Wa rro JV | EP321 | 57.30% | Western Austra l ia | 100% | No change | |
Wa rro JV | RL6 | 57.30% | Western Austra l ia | 100% | No change | |
Wa rro JV | RL7 | 57.30% | Western Austra l ia | 100% | No change |
Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report
Appendix 5B+Rule 5.5
Mining exploration entity and oil and gas exploration entity quarterly reportIntroduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16
Name of entity
TRANSERV ENERGY LIMITED
ABN Quarter ended ("current quarter")
68 079 432 796 31 December 2016
Consolidated statement of cash flows Currentquarter
$A'000
Cash flows from operating activities
Year to date (6 months)
$A'000
Receipts from customers
Payments for
exploration & evaluation
31 153
(151) (916)
development - -
production (23) (23)
staff costs (177) (281)
administration and corporate costs (323) (1,109)
Dividends received (see note 3) - -
Interest received 1 3
Interest and other costs of finance paid - -
Income taxes paid - -
Research and development refunds - -
Other (provide details if material) - -
1.9 Net cash from / (used in) operating activities
(642) (2,173)
Cash flows from investing activities
Payments to acquire:
property, plant and equipment - -
tenements (see item 10) - -
investments - (200)
other non-current assets - -
+ See chapter 19 for defined terms
1 September 2016 Page 1
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