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.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
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.
16 June 2014director officer appointment● Neutral
Peter Turnbull, a governance specialist and former Governance Institute of Australia president, was appointed independent non-executive director, replacing Stephen Power. The announcement says this provides an independent majority on the board.
16 June 2014drilling progress report● Neutral
Pharos-1 is drilling ahead at 4,570 mRT in the 8-1/2 inch section after 9-5/8 inch casing was set at 4,030 mRT. No result yet.
11 June 2014director officer appointment● Neutral
Non-executive director Stephen Power resigned from the board with immediate effect after nine years, staying as adviser and consulting lawyer on farm-out talks. Delivers the retirement flagged earlier in the board restructure.
6 June 2014debt financing● Neutral
Karoon agreed key terms for a US$100m bridge facility with NAB to fund operating cash needs until the US$600m Origin proceeds arrive. Karoon had previously had no debt.
2 June 2014other● Neutral
Third-party release from Origin on the same Browse deal: US$600m cash plus deferred payments, with Origin to fund it initially from debt and refinance via an equity raise of around $1bn. Adds Origin's side; no new Karoon terms.
2 June 2014investor presentation● Neutral
June 2014 corporate review summarises net resources and the Origin deal terms, including Origin reimbursing Pharos-1 costs paid before completion. Net Kangaroo contingent resource is 7/88/317 mmbbl (1C/2C/3C). Largely repeats known facts.
2 June 2014asset acquisition disposition▲ GoodMajor
Karoon agreed to sell its 40% of Browse permits WA-315-P and WA-398-P to Origin for up to US$800m: US$600m cash at completion, US$75m at FID, US$75m and up to US$50m at first production. Origin also covers Pharos-1 costs. Completion expected Q3 2014; resolves the funding suspension.
2 June 2014listing compliance notice● Neutral
ASX reinstated Karoon shares to quotation immediately after the Browse permit sale announcement, ending the suspension that began on 5 May 2014.
2 June 2014director officer appointment● Neutral
Karoon set out its board restructure: Stephen Power retires once an independent replacement is appointed, then a second independent director joins to give an independent majority, targeted before the 2014 AGM. Candidates are in discussion. Continues the April board announcement.
2 June 2014other▲ Good
Chairman's letter says the Origin sale and Apache farm-out represent up to A$1bn of value. It plans a five-well program (Kangaroo-2 plus four exploration wells), interim financing, and a capital management review in 2H 2014 after completion. Mostly restates known items.
2 June 2014investor presentation● Neutral
Origin's investor presentation on its Browse Basin acquisition, from the buyer's side. The text shown is mostly general company and LNG market background; no new Karoon terms visible in the readable portion.
30 May 2014drilling progress report● Neutral
Pharos-1 has drilled to 2,330 mRT and cemented 13-3/8 inch casing at 2,316 mRT. It is preparing to drill the 12-1/4 inch section. No result yet.
26 May 2014listing compliance notice● Neutral
Karoon requested the voluntary suspension continue pending an announcement on commercial discussions and funding. Talks with stakeholders and potential new investors continue, with an update due by 2 June. No new terms.
22 May 2014drilling spud● Neutral
Pharos-1, the sixth and last well of the Browse campaign, spudded on 20 May 2014 in WA-398-P, about 9 km north-east of the Proteus-1 discovery. It is at 716 mRT. Shares remain suspended.
19 May 2014listing compliance notice● Neutral
Karoon requested continued voluntary suspension pending an announcement on commercial discussions and its funding position. Talks with stakeholders and potential new investors continue, with an update promised by 26 May. No new information.
19 May 2014other● Neutral
Third-party notice from royalty holder High Peak Royalties, which has a 0.2% royalty on WA-482-P and 0.103125% on WA-315-P. It restates Karoon's Apache farm-out and Poseidon North-1 announcements and carries no new information about Karoon.
16 May 2014drilling result▼ BadMajor
Poseidon North-1 reached 5,288 mRT and interpreted a 12 m net Jurassic gas sand, but pressure data is inconclusive and mobile gas is unconfirmed. The well is being plugged and abandoned. The sixth well, Pharos-1 in WA-398-P, is approved.
16 May 2014farm in farm out agreement▲ GoodMajor
Karoon farmed out 50% of WA-482-P to Apache, which will pay US$9.04m for seismic costs, fund 90% of one well capped at US$63m, take over as operator and drill in the first half of 2015. This is the first completed farm-out in the process under way since late 2013.
12 May 2014listing compliance notice● Neutral
Karoon asked for the voluntary suspension to continue while funding and commercial discussions with stakeholders and potential new investors go on. A status update is promised by 19 May. No terms disclosed.
5 May 2014listing compliance notice▼ BadMajor
Karoon's shares were suspended at its own request on 5 May 2014, pending an announcement about its funding position. The company says it is in talks with stakeholders and potential new investors, and expects to update by 12 May.
30 Apr 2014resource reserve update▲ GoodMajor
Independent certification by DeGolyer and MacNaughton gives Karoon net unrisked prospective resource, best case, of 4.5 Tcf wet gas (Browse) and 4.2 bn bbl oil (WA-482-P, Peru Z-38 and Block 144). WA-482-P drilling is planned for 2015 and Peru Z-38 drilling to start in 2015.
30 Apr 2014quarterly activities report● Neutral
March quarter report: Poseidon North-1 is drilling at 4,304 mRT, Grace-1 is plugged and abandoned, and farm-out talks are under way, with negotiations on three of them. Chairman says the board will move to a majority independent board, with Stephen Power to retire.
17 Apr 2014drilling progress report● Neutral
Poseidon North-1 is at 3,820 mRT after drilling 1,361 m of the 12-1/4 inch section, and is preparing to run 9-5/8 inch casing. No result yet.
4 Apr 2014drilling progress report● Neutral
Poseidon North-1 has drilled the 17-1/2 inch section to 2,459 m and cemented 13-3/8 inch casing. The rig is installing the blowout preventer before drilling on. No result yet.
20 Mar 2014drilling spud● Neutral
Poseidon North-1, the fifth Browse Phase 2 well, spudded on 19 March 2014, 6.5 km north-east of Poseidon-1 in WA-315-P (Karoon 40%). It follows the Grace-1 dry hole and targets the Plover and Montara formations.
14 Mar 2014half year report● Neutral
Half-year to 31 December 2013: loss of A$8.1m (prior year A$8.7m), with A$4.2m interest income and A$2.1m foreign exchange gains. Restates known events: Grace-1 dry, A$175.5m raised, Pacific Rubiales transfer complete. Text truncated.
6 Mar 2014asset acquisition disposition▲ Good
Brazil's regulator approved the transfer of a 35% interest in block S-M-1166 to Pacific Rubiales, completing the 2012 farm-out across all five Santos blocks. Pacific Rubiales now holds 35% of the Kangaroo and Bilby discoveries and must fund its share of future work.
31 Jan 2014quarterly activities report● Neutral
December quarter report: Brazil's regulator approved the Phase 2 appraisal plan and the 35% transfer of four Santos blocks to Pacific Rubiales is complete. Grace-1 found no significant hydrocarbons. Investment banks were engaged to run farm-outs on the Browse and Santos permits.