27 July 2009capital raising announcement▲ Good
The share purchase plan closed having raised A$23.55m at A$6.70 per share, with shares allotted on 24 July. Together with the A$149.6m placement, this adds to Karoon's cash.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
23 July 2009drilling spud● NeutralMajor
Kontiki-1 was spudded on 22 July in WA-314-P, the second well of the Browse program, with a planned depth of 4,610 mRT. It targets Jurassic sandstones in a structure separate from Poseidon and will be plugged and abandoned after evaluation.
23 July 2009price query● Neutral
ASX queried a share price jump from $10.82 to a high of $12.00. Karoon said it knew of no undisclosed information beyond the Kon-Tiki-1 spud on 22 July, announced separately, and confirmed it is complying with listing rules.
13 July 2009price query● Neutral
ASX queried a price rise from $8.48 to $9.10 after the chairman called Browse finds "very bullish". Karoon said it knows of no undisclosed news and has not changed its P50 7 tcf estimate. The Legend rig is due to start Kon-Tiki-1 around 20 July.
3 July 2009capital raising announcement● Neutral
The share purchase plan is widened to holders who bought shares up to 4 June and were registered by 10 June, and the closing date is extended to 17 July. The A$6.70 price is unchanged.
19 June 2009capital raising announcement● Neutral
Share purchase plan documents were dispatched: up to about A$5,000 per holder at A$6.70, record date 4 June, closing 10 July. This is an administrative follow-up to the placement.
18 June 2009investor presentation● Neutral
June presentation repeats known facts and the Poseidon-1 results. It shows about 171.2m shares, cash A$225m, and market cap about A$1.26bn at A$7.35, reflecting the placement. The Legend rig is secured for Kontiki-1 and Poseidon-2.
17 June 2009contract award▲ Good
The Transocean Legend rig contract is formally signed, for a minimum 148 days covering Kontiki-1 and Poseidon-2 appraisal, with options for up to two further wells plus four mutually agreed one-well options. Kontiki is a separate structure about 29km from Poseidon.
10 June 2009capital raising announcement▲ GoodMajor
Karoon completed a placement of 22.33m shares at A$6.70 each, raising A$149.6m for Browse exploration and appraisal and the Peru and Brazil programs. This is the first raise since the A$49m placement in August 2008, and dilutes existing holders.
What it means for a shareholder
22.3m new shares at A$6.70 to raise about A$150m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (149 at the issue price), your slice goes from 0.0001% to 0.0000872% of the company. To keep it you'd need 22 more shares - about A$147 at the issue price.
Create a free account to see this worked out for your own holding.
10 June 2009capital raising announcement● Neutral
Karoon will offer eligible Australian and New Zealand shareholders up to A$5,000 of shares at A$6.70, the same price as the A$149.6m placement, free of brokerage. Applications close around 10 July.
9 June 2009capital raising announcement● Neutral
Karoon announced an institutional placement, led by Merrill Lynch, to fund Browse exploration and appraisal, Peru and Brazil programs, and working capital. A share purchase plan for existing holders is also planned. Shares stay in a trading halt until the placement completes.
9 June 2009contract award▲ GoodMajor
ConocoPhillips has secured the Transocean Legend rig to resume Browse drilling from July 2009, replacing the suspended Sedco-703. The contract covers Kontiki-1 plus one more well, with an option for two more, allowing Poseidon appraisal to begin.
27 May 2009investor presentation● Neutral
May presentation repeats known facts: Poseidon-1 contingent resource P90 3, P50 7, P10 15 tcf, and the well results. It gives about 149m shares, cash A$90m and market cap about A$920m at A$6.20, and notes inclusion in the S&P/ASX 200. No new results.
26 May 2009drilling progress report● Neutral
Poseidon-1 abandonment is nearly complete. The Sedco-703 rig's survey expires 28 May, so its contract is suspended. A replacement rig for Kontiki-1 is being negotiated, with no material delay expected, and a multi-well Poseidon appraisal plus 3D seismic is planned.
19 May 2009drilling result▲ GoodMajor
Poseidon-1 will be plugged and abandoned as a significant gas discovery: 317m gross gas-bearing Plover, three sands totalling 228m. Flow tests were impossible after a mechanical failure plugged the well. Karoon says the contingent resource is likely consistent with or above its pre-drill P50 7 tcf.
13 May 2009drilling progress report▼ Bad
Attempts to recover the stuck logging tool failed, so the two gas samples are lost. The tool was pushed to the hole bottom below the test zones and should not affect testing. A 5 inch liner is being run for about three weeks of flow tests.
4 May 2009price query● Neutral
ASX queried a share price rise from $5.05 on 28 April to $7.37 on 4 May. Karoon said the Poseidon-1 announcements explain it, and that it has unannounced further well information to come. It confirmed compliance with listing rules.
4 May 2009drilling progress report▲ GoodMajor
Wireline pressure data over a 56m interval confirmed a gas column in the lower sand, now measured at 139m gross. A logging tool then became stuck and two gas samples were not recovered. A gas flow test is planned after fishing the tool.
29 Apr 2009drilling progress report● Neutral
Poseidon-1 reached total depth of 5,112m and is preparing wireline logs. The hydrocarbon intersections remain interpreted until logging is analysed. No new result.
27 Apr 2009drilling progress report▲ GoodMajor
Three thick sands, of 10m, 67m and 114m+, have been found in a 278m Plover interval and are interpreted to contain hydrocarbons, based on mud logs and logging-while-drilling data. Wireline logging is needed to confirm. This is the most encouraging Poseidon-1 news so far.
23 Apr 2009drilling progress report▲ Good
Poseidon-1 entered the Middle Jurassic Plover reservoir at 4,796m and found a 10m sand interpreted to contain hydrocarbons. The significance will be assessed after drilling and logging. It is an early positive sign, not a confirmed discovery.
21 Apr 2009drilling progress report▲ Good
Poseidon-1 passed the top of the Upper Jurassic at 4,619m, about 31m higher than predicted, and background gas rose to 2.3% in non-reservoir rock. Main reservoir sands are expected within 24-48 hours.
15 Apr 2009drilling progress report● Neutral
At 4,580m, new logging data moved the expected top of the reservoir target to about 4,650m RT, and planned total depth was extended to about 5,050m TVDSS. Karoon says there is no material net impact on prospective resource ranges.
8 Apr 2009drilling progress report● Neutral
Poseidon-1 is drilling ahead in 8-1/2 inch hole at 4,190m, getting closer to the reservoir target expected from about 4,400m TVDSS. No result yet.
1 Apr 2009drilling progress report● Neutral
The expandable liner was set at 3,957m after clearing a wellbore obstruction at 3,901m. Poseidon-1 remains at 3,965m, preparing to drill ahead.
25 Mar 2009drilling progress report● Neutral
Poseidon-1 is at 3,965m, running an expandable liner before drilling resumes. Progress is slow, with no new geological result.
18 Mar 2009drilling progress report● Neutral
Poseidon-1 set 9-5/8 inch casing at 3,890m and is drilling ahead at 3,938m. Reservoir target still expected from about 4,400m TVDSS.
13 Mar 2009half year report● Neutral
Half-year to 31 December 2008: profit A$16.98m, largely from A$19.8m unrealised currency gains on US-dollar cash, versus a A$1.29m loss a year earlier. Cash was A$145m, of which A$13m is restricted. The report restates known operating news.
11 Mar 2009drilling progress report▼ Bad
At 3,898m Poseidon-1 hit a zone of drilling fluid losses and gains, and the operator decided to run 9-5/8 inch casing. The well is still short of the target reservoir.
4 Mar 2009drilling progress report● Neutral
Poseidon-1 is drilling ahead at 3,800m after the fluid influx at 3,552m. The reservoir target is still expected from about 4,400m TVDSS. No new result.