Past year: ▼ 4%(1.46 – 2.19 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
2 Feb 2011investor presentation● Neutral
February 2011 company review repeats known facts: about 217.3m shares, market value about A$1.6bn at A$7.35, cash A$319m at 31 December. Notes Maruja-1 flow of 6,142 stb/d and Maruja-2 appraisal drilling from February 2011.
2 Feb 2011other● Neutral
Revised version of the securities trading policy for directors and staff. Administrative document with no news on assets, funding or results.
21 Jan 2011regulatory community update▼ BadMajor
Karoon clarified press reports: the government declared the Browse drilling a 'Controlled Action' needing more detailed environmental assessment, which could delay the five-to-eight well program. The joint venture has asked for reconsideration and still prepares to drill in the first or second quarter of 2011.
19 Jan 2011well test result▲ GoodMajor
Maruja-1 testing finished: Petrobras reached an equipment-constrained 6,142 barrels a day of oil, and a 24-hour stable flow of 4,675 barrels a day (38 API). Well drilled to 3,789m. Confirms the November discovery flows commercially-scale oil; Karoon's 20% still awaits ANP approval.
31 Dec 2010other● Neutral
Karoon's securities trading policy for directors and staff, covering insider trading rules and closed periods. Administrative document with no news on assets, funding or results.
3 Dec 2010investor presentation● Neutral
Revised December review, a re-release of the 2 December deck. Adds director Clarke Davey to the board listing and splits Browse interests: WA-314-P Karoon 90%/ConocoPhillips 10%, WA-315-P and WA-398-P Karoon 40%/ConocoPhillips 60%. No new results.
2 Dec 2010investor presentation● Neutral
December 2010 company review repeats known facts: about 217m shares, market value about A$1.65bn at A$7.70, Poseidon range (P50 7 tcf), Maruja oil discovery. Shows WA-314-P as Karoon 90% (subject to final contract approval). The text states cash of A$320m and A$8.8m spend next quarter.
29 Nov 2010farm in farm out agreement▲ GoodMajor
Karoon agreed to take a further 50% of Browse permit WA-314-P from ConocoPhillips for no cash, lifting its interest from 40% to 90%. Karoon sees over 10 tcf potential; the Grace prospect has 3.3 tcf. ConocoPhillips can buy back 10% after the commitment well.
19 Nov 2010capital raising announcement▼ BadMajor
Karoon dropped the Brazil IPO for now, citing unfavourable markets and weak performance of recent Brazilian oil and gas raisings. It will wait for conditions to improve. Ends the plan to list 31.9% of its South American assets, announced in June.
18 Nov 2010investor presentation● Neutral
AGM presentation repeats known facts: about 217m shares, market value about A$2bn at A$9.14, and the Poseidon range. Adds an indicative 7 tcf development model, NPV US$6.9bn, IRR 20%, at assumed US$70/bbl condensate and US$10/mmbtu LNG. Browse appraisal drilling resumes Q1 2011.
17 Nov 2010other● Neutral
ASX lifted the trading suspension after the Maruja-1 announcement. Shares resume trading, ending the suspension that began 12 November.
17 Nov 2010drilling result▲ GoodMajor
Petrobras announced a light oil discovery at Maruja-1 in Brazil's Santos Basin, with reservoirs at 2,200m in 400m of water; drilling continues deeper. Karoon's first South American discovery; its 20% interest remains subject to ANP approval. Resolves the Maruja thread positively.
15 Nov 2010other● Neutral
Karoon says it expects to make an announcement about its South American business by 17 November. Trading stays suspended until then.
12 Nov 2010other● Neutral
Karoon's shares were suspended from trading at the company's request, pending an announcement. No reason given in the notice.
27 Oct 2010capital raising announcement▲ Good
The share purchase plan closed having raised A$81.8m through 11.7m new shares at A$7.00, below the A$100m cap. Together with the A$186.4m placement, this completes the September-October raising.
What it means for a shareholder
11.7m new shares at A$7.00 to raise about A$81.8m. That's 5.4% dilution: every existing holder's slice gets 5.4% smaller. If you held A$1,000 of shares (143 at the issue price), your slice goes from 0.0000695% to 0.0000658% of the company. To keep it you'd need 8 more shares - about A$56 at the issue price.
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27 Oct 2010capital raising announcement● NeutralMajor
Karoon's Brazilian subsidiary filed a preliminary prospectus for a Brazilian IPO of 31.9% (1.03m shares, expected US$621-773m, all new shares); Karoon would keep 68.1%. Pricing is expected 10 November. Australian shareholders cannot participate directly, and Karoon may still not proceed.
5 Oct 2010drilling progress report● Neutral
Maruja well, spudded 23 September, had 20-inch surface casing cemented and was preparing to drill ahead at 1,123m. Petrobras operates; Karoon's interest will be 20% once approvals and farm-in obligations are met. No result yet.
5 Oct 2010director officer appointment● Neutral
Clark Davey, a former Price Waterhouse and PwC resources tax partner, joined the board as an independent non-executive director from 1 October 2010, subject to AGM ratification. He is to receive 500,000 options at a A$9.48 strike, subject to shareholder approval.
27 Sept 2010capital raising announcement● Neutral
The share purchase plan opened 27 September at A$7.00, a 9% discount to the five-day average of A$7.63, and closes 20 October. Parcels up to about A$15,000; the A$100m cap may cause scale-backs. Repeats the earlier plan terms.
21 Sept 2010capital raising announcement● Neutral
Karoon will offer eligible Australian and NZ shareholders a share purchase plan of up to about A$15,000 each at A$7.00, the same price as the placement, capped at A$100m. Closing is expected around 20 October.
20 Sept 2010annual report● Neutral
2010 annual report restates the year: Poseidon-2 and Kronos-1 (26 MMscf/d) in Browse, 3D seismic in Brazil and Peru, and the Petrobras farm-in for 20% of two Santos blocks. Browse drilling is scheduled to resume in first half 2011. No new figures seen in the readable text.
16 Sept 2010capital raising announcement▲ GoodMajor
Karoon completed its institutional placement: 26.6m shares at A$7.00 to raise A$186.4m, for Browse appraisal, Brazil and Peru exploration and working capital. Resolves the 15 Sep raising; a share purchase plan for existing holders will follow.
What it means for a shareholder
26.6m new shares at A$7.00 to raise about A$186m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (143 at the issue price), your slice goes from 0.0000805% to 0.00007% of the company. To keep it you'd need 21 more shares - about A$147 at the issue price.
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15 Sept 2010capital raising announcement● NeutralMajor
Karoon announced an institutional share placement, lead-managed by Merrill Lynch, to fund Browse appraisal, Brazil and Peru exploration and working capital. Size and price are not stated. A share purchase plan for existing holders will follow; shares are in a trading halt.
13 Sept 2010drilling result▼ BadMajor
The Quasi well in Brazil reached 2,011m and found no commercial hydrocarbons; it will be plugged and abandoned. Karoon estimates its net cost at about US$6.5m. The lower-risk Maruja prospect is next, due to start in September.
13 Sept 2010drilling progress report● Neutral
Quasi well (1-SPS-75) in Santos Basin, drilling since 25 August, had surface casing set at 1,400m and the blowout preventer under test. Target is about 1,700m. Karoon will hold 20% post farm-in; Petrobras operates.
9 Sept 2010capital raising announcement● NeutralMajor
Karoon Brazil filed a draft prospectus with Brazil's securities regulator, the first step toward an IPO on BM&FBOVESPA. Karoon expects to keep about 70-75% and listing is possible in Q4, though not committed. Updated D&M risked prospective resources are 589m bbl.
30 Aug 2010investor presentation● Neutral
September 2010 investor presentation repeats known facts and adds the Petrobras farm-in, now showing seven Brazilian blocks. Cites market capitalisation of about A$1.25bn at A$7.10 and cash of A$87m at 30 June.
30 Aug 2010farm in farm out agreement▲ GoodMajor
Karoon signed a farm-in with Petrobras for 20% of two Santos Basin blocks (Maruja and Quasi prospects), subject to approvals, by funding 35% of the Maruja well. Drilling has begun at Quasi, Maruja is due in September, and results are expected by end-2010.
16 Aug 2010investor presentation● Neutral
August 2010 investor presentation repeats known facts: Kronos-1 flow, Poseidon resource range, and cash of A$87m at 30 June. Cites market capitalisation of about A$1.25bn at A$7.10.
8 June 2010material agreement● NeutralMajor
Karoon is assessing a separate listing of its Brazilian and Peruvian assets, probably on Bovespa, because it believes the market undervalues them. A D&M report puts risked net prospective resources at 577m boe. It plans to list 30% and keep a majority; no decision made.
