17 Jan 2013drilling progress report● Neutral
Kangaroo-1 has cemented 13-3/8" casing at 1840 m and is preparing to drill the next hole section. Drilling is expected to run for most of the first quarter of 2013. No result yet.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
16 Jan 2013drilling progress report▼ Bad
Zephyros-1 drilled to 2918 m before tropical cyclone Narelle forced the rig to be evacuated and operations suspended. The crew is being re-manned to resume drilling. No reservoir result yet.
3 Jan 2013drilling progress report● Neutral
Zephyros-1 blowout preventer repairs are complete and the equipment is back on the seafloor. The well is drilling out cement at 2691 m to resume the next hole section. No reservoir result yet.
31 Dec 2012drilling spud▲ GoodMajor
Kangaroo-1, Karoon's first Santos Basin well, spudded on 28 December 2012 and had reached 915 m by 30 December. Results are expected into February 2013. This starts the three-well Brazil campaign, with Pacific Rubiales' 35% farm-in still awaiting ANP approval.
19 Dec 2012investor presentation● Neutral
December review restates Boreas-1 and Kronos-1 flows, Zephyros-1 spud and the Blackford Dolphin rig's arrival. New figures: cash A$247m at end November 2012, market value about A$1.1bn at A$5.00. Pacific Rubiales farm-out still awaits regulatory approval.
13 Dec 2012drilling scheduled▲ Good
The Blackford Dolphin rig began moving to Kangaroo-1 on 11 December, with spud expected in the last week of December. ANP extended the Santos block work-commitment term by 180 days to 12 November 2013. Kangaroo-1 has 272m barrel gross mean prospective resource.
12 Dec 2012drilling progress report▼ Bad
Zephyros-1 blowout preventers failed function testing and were pulled for repair, delaying the next hole section. This is another equipment problem on the Transocean Legend, after the preventer repairs that delayed Boreas-1 earlier in 2012.
28 Nov 2012drilling progress report● Neutral
Zephyros-1 has set 13-3/8" casing at 2691 m and is preparing to run the blowout preventer. Drilling of the next hole section is expected over the coming weekend. No reservoir result yet.
13 Nov 2012drilling spud● Neutral
Zephyros-1, the second well of the Browse campaign after the Boreas-1 gas discovery, spudded on 12 November 2012. It tests Plover reservoirs about 9 km southwest of Kronos-1 in WA-398-P, where Karoon holds 40%. Campaign is at least five wells through 2013.
12 Nov 2012investor presentation● Neutral
November review repeats known points: Pacific Rubiales farm-out (US$40m, subject to approval), Boreas-1 and Kronos-1 flows, three Santos wells from Q4 2012. New figures: cash A$243m at 31 Oct 2012 and market value about A$1.2bn at A$5.40.
25 Oct 2012investor presentation● Neutral
AGM operations review recaps Boreas-1's 30.2 MMscf/d flow, the Pacific Rubiales farm-out and the Santos drilling order (Kangaroo, Emu/Cassowary, Bilby). Adds Karoon's modelling that a production well could flow 100-250 MMscf/d. Text truncated; no new announcement.
25 Oct 2012other● Neutral
AGM chairman's address recaps known events: the Boreas-1 gas and condensate discovery, the Pacific Rubiales farm-out, and Brazil drilling to start with Kangaroo-1. Peru drilling is planned for 2013 with a Z-38 farmout sought. Text is truncated; no new announcement visible.
24 Oct 2012flow test result▲ GoodMajor
Boreas-1 flowed a sustained, equipment-limited 30 MMscf/d with a condensate ratio of 18 bbl/MMscf, nearly double Kronos-1, and 16% CO2. Karoon believes adjacent production wells could flow above 100 MMscf/d. Zephyros-1 is next.
17 Oct 2012flow test result▲ GoodMajor
Boreas-1 flowed gas at up to 30.2 MMscf/d during clean-up, limited by surface equipment, from a 70 m interval in the Plover formation. Testing continues for about five days. Karoon calls the initial flows encouraging.
11 Oct 2012drilling progress report● Neutral
A production test string is being installed in Boreas-1, with flow testing to begin in the coming days and run through the following week. No test results yet.
28 Sept 2012resource reserve update● NeutralMajor
D&M estimates Karoon's South American net Pg-adjusted mean prospective resources at 561m barrels, down from 589m in 2010 despite a higher gross figure of 812m. The fall largely reflects the 35% Santos Basin farm-out. This long-awaited reassessment excludes the two pre-salt prospects and Maruja.
27 Sept 2012drilling result▲ GoodMajor
Boreas-1 logs indicate net gas pay sands with good reservoir properties, backed by pressure measurements and gas samples recovered by wireline. Production testing is being prepared once the production liner is installed. This firms up the earlier hydrocarbon indications.
24 Sept 2012investor presentation● Neutral
September review restates the Pacific Rubiales farm-out, Boreas-1 reaching its target and the new WA-482-P permit. It cites cash of A$228m at 30 June 2012 and about 221m shares. No new announcements beyond already-known items.
21 Sept 2012farm in farm out agreement● NeutralMajor
Karoon agreed to acquire 100% of North Carnarvon Basin permit WA-482-P from Liberty, funding at least A$16.5m of seismic work over two years. It can withdraw before the Year 3 well commitment. Four prospects are estimated at 0.5 to 3 tcf each.
20 Sept 2012drilling progress report● Neutral
Boreas-1 cut 108 m of core and reached total depth. Wireline logging, pressure and sampling are under way to confirm earlier hydrocarbon indications. If production testing goes ahead it needs about 35 more days.
19 Sept 2012farm in farm out agreement▲ GoodMajor
Pacific Rubiales will take 35% of four Santos Basin blocks (option on a fifth), paying US$40m cash and carrying up to US$210m of well costs. This completes the long-negotiated Brazil farmout. It is subject to ANP approval; Karoon remains operator through the three-well campaign.
14 Sept 2012annual report● Neutral
2012 annual report restates known points: Boreas-1 reached its reservoir after blowout preventer repairs finished in August, Brazil farm-out talks continue, Peru drilling is planned for 2013, and the WA-314-P farm-out is targeted for early 2013. Text is truncated, so financials are not visible.
6 Sept 2012drilling result▲ GoodMajor
Boreas-1 intersected its primary reservoir target, with drilling signs pointing to a potential gas-bearing sand. Coring is starting; wireline logging will follow, and production testing only if the logs confirm hydrocarbons. This ends the long wait after the earlier equipment delays, but flow is unproven.
31 Aug 2012drilling progress report● Neutral
Boreas-1's 8-1/2 inch hole was drilled to 4805 m and a 7-5/8 inch liner was cemented. The 6-1/2 inch section was about to start. No hydrocarbon result reported yet.
17 Aug 2012drilling progress report▲ Good
Blowout preventer testing finally passed and the casing was pressure tested; Boreas-1 was drilling out cement, with the 8-1/2 inch section starting that day. This resolves the repair delay, and the well resumes toward its target.
31 July 2012drilling progress report▼ Bad
After further repairs, Boreas-1's blowout preventer and marine riser were re-run to the sea floor, but function testing failed again and troubleshooting continued. Drilling of the 8-1/2 inch section was still waiting on a fully functional blowout preventer.
27 July 2012price query▼ Bad
ASX queried a fall from A$3.64 to a low of A$3.12 on 26 July. Karoon said it knew of no unannounced information and no other explanation, and confirmed compliance with listing rules. Price is well below the A$5.43 of earlier in 2012.
13 July 2012drilling progress report▼ Bad
Testing has narrowed the likely cause of the Boreas-1 blowout preventer fault, and replacement parts are being sent to the rig. The blowout preventers are again being pulled; drilling has not resumed.
2 July 2012drilling progress report▼ Bad
A new, unrelated mechanical problem with the Boreas-1 blowout preventers forced them to be pulled again for repair. Drilling remains stalled at 4009 m.
28 June 2012drilling progress report● Neutral
After further repairs, the Boreas-1 blowout preventers were re-run to the sea floor for final testing, with drilling expected to resume later that day. Transocean has brought in a global expert team.