Past year: ▼ 4%(1.46 – 2.19 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
28 Jan 2015drilling result● Neutral
The Kangaroo-2 down-dip sidetrack reached 2,745 mRT. It found a 50 m gross Maastrichtian oil column with 38 degree API oil, water-wet Paleocene sands, and no oil in the deeper Campanian. An up-dip sidetrack is being prepared.
6 Jan 2015well test result▲ GoodMajor
Paleocene testing of Kangaroo-2 reached a maximum 3,700 stb/d (stabilised 3,450 stb/d), adding to the Maastrichtian result. Karoon repeats a vertical well could make 6,000-8,000 stb/d. Two sidetracks, down-dip and up-dip, will now be drilled to refine resource size.
23 Dec 2014well test result▲ GoodMajor
Kangaroo-2 production test flowed oil at a maximum 3,700 stb/d (stabilised 3,300 stb/d) from the Maastrichtian reservoirs. Karoon expects a vertical production well could produce 6,000-8,000 stb/d. Paleocene tests are due within about a week, and a sidetrack decision follows.
19 Dec 2014director officer appointment▲ GoodMajor
Dr David Klingner, a former Rio Tinto executive with 38 years there, became independent Chairman on 19 December 2014. Robert Hosking, founder, moves from Executive Chairman to Managing Director. This fulfils the independent Chair promised for December in the October letter.
3 Dec 2014drilling progress report● Neutral
Kangaroo-2 wireline logging is complete and the test casing is being run before production testing over the coming weeks. A decision on a sidetrack and coring follows testing. Kangaroo West-1 is next with the rig. No new result.
26 Nov 2014drilling result▲ GoodMajor
Kangaroo-2 found a 250 m gross oil column (135 m net pay) across five reservoirs, with 40 degree API oil recovered. No gas cap was found, and shallower oil-water contacts in some sands are being assessed for effect on the contingent resource. Production testing follows.
20 Nov 2014other● Neutral
ASIC filing records 3,477,479 shares cancelled under the buyback for about A$10.2m, leaving 246,444,659 shares. Buyback continuing.
19 Nov 2014drilling progress report▲ Good
Kangaroo-2 entered the target Paleocene reservoir at 1,660 mRT, with oil shows and elevated gas, consistent with Kangaroo-1. Drilling continues to total depth before logging confirms the hydrocarbon column.
14 Nov 2014drilling progress report● Neutral
Kangaroo-2 has reached 1,074 mRT, with the 13-3/8" casing cemented. Drilling resumes shortly. No new result; the 350 m-plus gross column target is unchanged.
6 Nov 2014drilling spud● NeutralMajor
Kangaroo-2 appraisal well spudded 5 November 2014 in block S-M-1165 (Karoon 65%), reaching the reservoir in about 3 weeks and total depth in December. It tests the size of the oil column at the Kangaroo discovery. Kangaroo West-1 follows.
31 Oct 2014other● Neutral
ASIC filing records 2,891,717 shares cancelled under the buyback for about A$9.6m, leaving 249,922,138 shares. Buyback continuing.
27 Oct 2014investor presentation● Neutral
AGM presentation largely repeats known points: A$660m cash, buyback, Kangaroo-2 in November, Levitt-1 in 1H15, farmouts still difficult. Adds preliminary Kangaroo economics claimed: payback under 3 years and ~85% operating margin at US$85/bbl oil.
24 Oct 2014drilling progress report▲ Good
Karoon has taken possession of the Olinda Star rig from Petrobras. It is heading to the Santos Basin, with Kangaroo-2 likely to spud in the second week of November. Resolves the rig handover awaited since the 16 October update.
16 Oct 2014drilling scheduled▲ GoodMajor
Karoon expects to start its 2-4 well Santos Basin campaign in the second week of November 2014, once the Olinda Star rig is handed over in 2-3 weeks. Kangaroo-2 appraisal comes first, then Kangaroo West-1 (net best 330 mmbbl). Karoon holds 65%.
15 Oct 2014other● Neutral
ASIC filings record shares cancelled under the buyback: 1,127,526 shares for about A$3.9m, leaving 252,813,855 shares. Earlier filings cut the count from 255.5m. Shows the buyback is in progress.
15 Oct 2014director officer appointment● Neutral
Karoon says its independent Chair search has made significant progress, with an appointment expected before the end of 2014, earlier than the 30 June 2015 target. Related-party transactions will now go through the Risk and Governance Committee, and a succession review begins.
10 Oct 2014agm notice▼ BadMajor
The board urged shareholders to vote against three nominees from Pegasus, which manages a 2.4% stake and also seeks to remove director Geoff Atkins, at the 27 October 2014 AGM. It says the Chair search is shortlisted. First public sign of a board contest.
22 Sept 2014admin correction● Neutral
Appendix 4G, a standard governance disclosure key, points to the corporate governance statement on pages 104 to 117 of the annual report. No new substance.
17 Sept 2014investor presentation● Neutral
Melbourne Mining Club presentation repeating known points: A$960m market cap, A$660m cash, buyback active for up to 10% of shares, and Kangaroo appraisal in the December quarter 2014. No new information.
12 Sept 2014annual report● Neutral
2014 annual report covers the Origin sale (up to US$800m, about 25% a year return), the Apache farm-out and the independent board majority. It confirms the focus on Kangaroo appraisal and a post-year-end capital return.
3 Sept 2014director officer appointment● NeutralMajor
Karoon will separate the Executive Chairman role: Robert Hosking will become Managing Director once an independent non-executive Chair is found, targeted before 30 June 2015. A Risk and Governance Committee chaired by Peter Turnbull was also set up.
3 Sept 2014investor presentation● Neutral
Corporate presentation repeating known facts: A$660m cash at 31 August 2014, an on-market buyback of up to 10% of shares, Kangaroo appraisal in the December quarter 2014, and ongoing Santos and Z-38 farmout talks. Confirms the buyback launched after the capital review.
12 Aug 2014asset acquisition disposition▲ GoodMajor
The sale of Karoon's 40% of Browse permits WA-315-P and WA-398-P to Origin completed, with US$600m received. Up to US$200m of deferred payments remain contingent on FID and first production, plus Pharos-1 cost reimbursement. Resolves the pending sale.
21 July 2014regulatory community update● Neutral
Peru's regulator approved force majeure on Block Z-38 effective 1 September 2013, because Karoon could not secure a suitable Pacific-side rig in time. About 22 months of the Third Period remain once lifted. Z-38 farmout is still sought.
17 July 2014drilling result▲ GoodMajor
Pharos-1, the sixth and final Browse well, hit total depth of 5,220 mRT. Logs indicate a gas-charged Montara sandstone with 53 m gross and 34 m net pay, extending the Proteus discovery. A flow test is due within weeks. Origin bears costs under its pending purchase.
14 July 2014contract award▲ GoodMajor
Karoon contracted the Olinda Star rig for up to four Santos Basin wells: two firm (Kangaroo-2 appraisal, Kangaroo West-1) and two options. Drilling is expected to start September 2014, resolving the open rig contract thread.
1 July 2014joint venture update▲ GoodMajor
Joint venture pre-emption rights over the Browse sale to Origin expired, clearing the way for the deal, which still needs regulatory approval and is expected to complete in Q3 2014. The US$100m NAB bridge facility is now signed.
1 July 2014other● Neutral
Origin release confirming PetroChina and ConocoPhillips did not exercise pre-emption rights, which expired 30 June 2014. Origin expects completion in one to two months, subject to remaining conditions and approvals. Repeats Karoon's announcement.
27 June 2014drilling progress report● Neutral
Pharos-1 reached 4,950 mRT, with a 7-5/8 inch liner cemented at 4,949 mRT, and is preparing to drill the 6-1/2 inch section. No result yet.
25 June 2014director officer appointment● Neutral
Bernard Wheelahan, an oil and gas veteran with over fifty years' experience, joined as independent non-executive director. Karoon says the board now has an independent majority, completing the restructure it promised before the AGM.
