Karoon Energy Ltd (ASX:KAR): announcements explained, share price and valuation

Announcements, explained

Each one in plain English, with the numbers worked through for a shareholder.

11 June 2008capital raising announcement● NeutralMajor

Karoon agreed a placement of 14 million shares at $3.50 to raise $49m, subject to shareholder approval, lifting shares to about 146 million. Funds are for the Browse drilling and the Peru and Brazil exploration programs.

What it means for a shareholder

14.0m new shares at A$3.50 to raise about A$49.0m. That's 9.6% dilution: every existing holder's slice gets 9.6% smaller. If you held A$1,000 of shares (286 at the issue price), your slice goes from 0.000216% to 0.000195% of the company. To keep it you'd need 30 more shares - about A$105 at the issue price.

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16 Nov 2007capital raising announcement▲ GoodMajor

Karoon completed a placement of 14.8 million shares at $3.45, raising $51.06m and lifting shares on issue to about 129 million. Directors also sold 1.875 million shares to fund exercising 2.25 million options. The earlier $2.20 placement is now well below market.

What it means for a shareholder

14.8m new shares at A$3.45 to raise about A$51.1m. That's 11% dilution: every existing holder's slice gets 11% smaller. If you held A$1,000 of shares (290 at the issue price), your slice goes from 0.000253% to 0.000224% of the company. To keep it you'd need 37 more shares - about A$128 at the issue price.

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3 May 2007capital raising announcement▲ GoodMajor

Karoon proposes a placement of 19 million shares at $2.20 to raise $41.8m, to fund Browse Basin exploration commitments and working capital. Talbot Group takes 12 million shares. It needs shareholder approval at a general meeting proposed for 15 June 2007.

What it means for a shareholder

19.0m new shares at A$2.20 to raise about A$41.8m. That's 17% dilution: every existing holder's slice gets 17% smaller. If you held A$1,000 of shares (455 at the issue price), your slice goes from 0.000481% to 0.000401% of the company. To keep it you'd need 91 more shares - about A$200 at the issue price.

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31 Oct 2006capital raising announcement▲ GoodMajor

Karoon places 12.186 million shares at $1.80 to institutional and sophisticated investors, raising $21.935m, with much of it from the UK. Funds go to its share of the two Browse wells, extended Gippsland drilling and working capital, so more shares are on issue.

What it means for a shareholder

12.2m new shares at A$1.80 to raise about A$21.9m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (556 at the issue price), your slice goes from 0.000684% to 0.000595% of the company. To keep it you'd need 83 more shares - about A$149 at the issue price.

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