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.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
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.
29 Oct 2010quarterly activities report● Neutral
September 2010 quarterly: the placement (A$186.4m) and share purchase plan (A$81.8m) both at A$7.00 are done, and the Brazil IPO is progressing, with pricing expected 10 November. Maruja-1 is drilling. Browse Phase-2 drilling is targeted for Q1 2011; Brazil own-block wells are now late 2011 or early 2012.
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.
5 Aug 2010quarterly activities report● Neutral
Amended Appendix 5B for June 2010 quarter: cash ended at A$87.1m, down from A$152.0m. Quarterly operating and investing outflow was A$67.3m. Planned spend next quarter is A$12.4m. No debt.
30 July 2010quarterly activities report● Neutral
June 2010 quarterly: Kronos-1 test (26 MMscf/d) and the D&M South American resource report (577m boe) repeat known facts. Cash was about A$87m, a rig tender for the 2011 program is underway, and the AC/P8 CSEM survey is expected in August. Poseidon range unchanged.
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.
7 June 2010drilling progress report● Neutral
Kronos-1 drilling and testing are complete and the Transocean Legend rig has been released, ending the 2009/10 drilling campaign. Poseidon data and 3D seismic will be analysed, with further wells targeted for early 2011.
1 June 2010investor presentation● Neutral
June 2010 investor presentation repeats the Kronos-1 result and Poseidon resource range (P50 7 tcf). Cites market capitalisation of about A$1.4bn at A$7.90 and cash of about A$90m. No new announcements.
27 May 2010well test result▲ GoodMajor
Kronos-1 testing finished, confirming an equipment-constrained 26 MMscf/d, with condensate-gas ratio 9.5 bbl/MMscf and 10% CO2. Karoon believes adjacent production wells could flow above 100 MMscf/d. This resolves the pending Kronos-1 result; resource revision still awaits independent assessment.
19 May 2010flow test result▲ GoodMajor
Kronos-1 flowed gas at a maximum 26 MMscf/d during clean-up, limited by surface equipment. Pressure data indicates a separate gas accumulation from Poseidon-1, with a gas-water contact potentially over 200m deeper. The campaign ends with this well; drilling resumes in Q1 2011.
6 May 2010drilling progress report▲ Good
Kronos-1 reached a total depth of 5,329 mRT. Logs and pressure data indicate net pay gas sands with good reservoir properties and a gas gradient. A production test of up to 20 days will follow; Karoon holds 40%.
30 Apr 2010quarterly activities report● Neutral
March 2010 quarterly: Poseidon-2 was completed and tested, Kronos-1 was drilling at 5,249 mRT, and Poseidon, Santos and Peru Z-38 3D seismic surveys are complete. The next Browse drilling is expected from early 2011. Largely repeats known facts.
30 Apr 2010drilling progress report● Neutral
Kronos-1 cored 5,018-5,055 mRT and was drilling ahead at 5,249 mRT, nearing planned depth of 5,322 mRT. Logging and evaluation will take about 20 more days. No result yet.
19 Apr 2010drilling progress report▲ Good
Kronos-1 hit a sand-prone interval at 4,998 mRT with increased background gas; at 5,018 mRT drilling paused for coring. Evaluation will take about 30 days, plus about 20 days if tested. Weekly reporting ceases.
15 Apr 2010drilling progress report● Neutral
Kronos-1 reached 4,779 mRT, and 7 inch liner was run and cemented. No result yet.