SENTRY PETROLEUM LTD. (SPLM) company history: the story so far

History

Sentry Petroleum built a Queensland exploration portfolio in 2008, sought a drilling partner and fresh equity in 2011, then deregistered from the SEC in January 2012.

2008: Building a Queensland acreage position

Sentry Petroleum Ltd. set out in 2008 to build a position in oil and gas exploration in Queensland, Australia. On April 23, 2008, CEO Alan Hart gifted all his shares to SPM Group, which took control with 22% of the common stock. A week later, on April 30, the company agreed to acquire exploration permit ATP865 from Medina Group, taking on a four-year work program valued at AU$4.29 million and a 0.5% royalty on production. Queensland's Department of Mines and Energy approved the deal on July 2, and Raj Rajeswaran began signing as President and Director.

On October 3, 2008, the Australian subsidiary agreed to acquire three more permits, ATP862, ATP864 and ATP866, also from Medina. This carried a four-year work commitment valued at AU$16.5 million and a 7.0% royalty to Medina.

2011-2012: Partners, money and a quiet exit

The record then goes quiet until 2011. On March 14, Sino American Oil Company took an option to earn up to 70% of ATP 865 and ATP 866 by drilling a well to 1,660 metres, shooting 100 km of seismic and commissioning an independent audit. Sino paid $25,000 and owes $250,000 if it does not exercise. The company could buy back 20% by paying 40% of Sino's drilling costs, leaving Sino with 50%.

On April 14, the company agreed to raise up to $3 million from Camerts S.A. in three share purchases. The first, 227,273 shares for $500,000, was immediate. The second, 400,000 shares for $1.0 million, depends on confirming minimum gas content in coal and carbonaceous shale. The third, 535,714 shares for $1.5 million, depends on initial 3P reserve certification. If the conditions are not met, Camerts' investment stays at $500,000. At the end of 2011 there were 47,446,207 shares on issue.

Appraisal drilling in ATP862 began in June 2011, and the Albilbah_CSG1 well was started on July 5, 2011, with no results reported. On January 18, 2012, Sentry deregistered its securities, ending its obligation to file reports with the SEC. Whether Sino exercised its option and whether Camerts' later conditions were met is not recorded.

Written from the 6 story beats below (2008 to 18 Jan 2012), which come from the company's own announcements and filings.

Beat by beat

The events that changed the company's story, in plain English, each written against everything known about the company at the time. The dot shows whether it was good, bad or neutral for shareholders.

shares on issue market cap (log scale)

201247.4m shares · US$10.0m market cap

18 Jan
SENTRY PETROLEUM LTD. deregistered its securities, ending its obligation to file reports with the SEC.
listing compliance notice
47.4m shUS$10.0m

201147.4m shares · US$149m market cap

19 Apr
On April 14, 2011, the company agreed to raise up to $3 million from Camerts S.A. through share purchases in three tranches. The first is 227,273 shares for $500,000 immediately. The second is 400,000 shares for $1.0 million, conditional on confirming minimum gas content in coal and carbonaceous shale. The third is 535,714 shares for $1.5 million, conditional on initial 3P reserve certification. The company says there is no assurance the conditions will be met, in which case Camerts' investment is limited to $500,000.
material agreement
47.4m shUS$149m
15 Mar
On March 14, 2011, the company gave Sino American Oil Company an option to earn up to a 70% working interest in ATP 865 and ATP 866 by drilling one conventional well to 1,660 metres, shooting 100 km of seismic, and providing an independent audit of the results. Sino paid $25,000, and owes a further $250,000 if it does not exercise the option. If Sino does exercise, the company has 90 days to buy back a 20% interest by paying 40% of Sino's drilling costs, which would leave Sino with 50%.
material agreement
47.4m shUS$167m

2008

9 Oct
On October 3, 2008, the Australian subsidiary agreed with Medina Group Limited to acquire ATP862, ATP864 and ATP866 in Queensland, taking on the conventional oil and gas rights. The deal carries a four-year work commitment valued at AU$16.5 million and a 7.0% gross overriding royalty to Medina. This adds to the ATP865 permit acquired earlier in 2008.
material agreement
8 July
Queensland's Department of Mines and Energy approved the ATP865 acquisition on July 2, 2008, so the conditional agreement with Medina Group from April was completed and terminated. The filing also reports a change in shell company status, and refers to the June 2, 2008 10-K for business and financial details. Raj Rajeswaran now signs as President and Director.
asset acquisition disposition
30 Apr
Now named Sentry Petroleum Ltd., the company agreed on April 30, 2008 to acquire exploration permit ATP865 in Queensland, Australia from Medina Group, subject to regulatory approval. It takes on a four-year work program valued at AU$4.29 million and a 0.5% gross overriding royalty. Separately, CEO Alan Hart gifted all his shares to SPM Group on April 23, 2008, giving SPM control with 22% of the common stock.
material agreement