25 Feb 2009drilling progress report▼ Bad
Poseidon-1 reached 3,552m, where a minor fluid influx occurred. The crew is circulating mud to stabilise the hole before changing the drill bit. The reservoir top is expected at about 4,400m TVDSS.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
18 Feb 2009drilling progress report● Neutral
Poseidon-1 resumed drilling and was at 3,026m, drilling ahead in 12-1/4 inch hole toward the 4,800m planned depth. No hydrocarbon result yet.
17 Feb 2009regulatory community update▲ Good
A 2,000 km 2D seismic survey began 11 February in Peru Block Z-38, due to finish in March. Karoon holds 20% and Vietnam American Exploration is operator with 80%. The release says main prospects each have 100-300 million barrels of prospective resource.
11 Feb 2009drilling progress report▼ Bad
Poseidon-1 is still at 2,288m. Blow-out equipment needed repairs, and cyclone Freddy forced a partial evacuation of staff and equipment; re-manning was completed over the weekend. Drilling had not resumed yet.
4 Feb 2009drilling progress report● Neutral
Poseidon-1 has set surface casing at 2,288m and is preparing to test blow-out prevention equipment before drilling ahead. No result yet; Karoon holds 49% of the well operated by ConocoPhillips.
2 Feb 2009investor presentation● Neutral
February 2009 review repeats the AGM deck: about 149m shares, cash A$140m, and the 200-day Browse program began 26 January with Poseidon-1. Cost is US$270m, Karoon's share US$72m. It also notes S&P/ASX 200 inclusion. Poseidon's P50 estimate is 7 tcf; no new results.
28 Jan 2009drilling spud▲ GoodMajor
Poseidon-1 spudded on 26 January 2009 in WA-315-P, the first well of the Browse campaign. It was drilling ahead at 1,055m toward a planned 4,800m. This resolves the long-delayed start of drilling. Karoon holds 49%.
23 Jan 2009drilling scheduled▲ Good
Sedco-703 rig handed over on 22 January 2009. Poseidon-1 in WA-315-P is due to spud the following week, with a planned depth of 4,800m, targeting Jurassic sandstones. Karoon holds 49% (ConocoPhillips option to 60%), starting the 200-day Browse campaign after several slips.
5 Dec 2008other● Neutral
S&P announces Karoon will be added to the S&P/ASX 200 from the close on 19 December 2008, a step up from the All Australian 200 listing. It is an index change, with no operational news.
27 Nov 2008investor presentation● Neutral
AGM presentation: about 149m shares, market cap about A$340m at $2.30, cash A$140m. Browse drilling of at least one well per permit is expected to start December 2008, total cost US$270m with Karoon's share US$72m. Mostly repeats known facts.
27 Nov 2008investor presentation● Neutral
Chairman's AGM address: 149m shares, usable cash $135m. Browse drilling expected to start within a month, with Poseidon-1 the first well. Peru and Brazil seismic is planned for 2009, with drilling there around 2010-2011. Largely repeats known plans.
13 Nov 2008security holder rights change● Neutral
Administrative notice that 210,000 unlisted options (exercise price $2.03) expired unexercised on 31 October 2008. Karoon asked ASX to remove them from its list.
10 Nov 2008other● Neutral
S&P announces Karoon will join the S&P/ASX All Australian 200 index after close on 17 November 2008, filling a vacancy from St.George Bank's removal. It is an index change, with no operational news.
1 Oct 2008annual report● Neutral
Annual report for year to 30 June 2008 recaps the year: Browse 3D survey finished, AC/P8, Brazil and Peru Z-38 acquired, and about A$100m raised in two placements. Repeats the 1.23bn BOE prospective resource estimate. Browse interpretation is not yet complete.
15 Sept 2008resource reserve update▲ GoodMajor
DeGolyer and McNaughton, an independent consultant, report mean risked prospective resources of 1.23 billion barrels of oil equivalent across Karoon's 19 prospects in Australia and South America. These are undiscovered, with no certainty any will be found. Browse drilling is expected from Q4 2008 or Q1 2009.
1 Aug 2008investor presentation● Neutral
EGM presentation repeats known plans: Browse drilling, Brazil and Peru. Gives shares of about 132m (146m if the placement is approved) and cash of A$70m (A$117m with approval). Nothing new on drilling or results.
1 Aug 2008investor presentation● Neutral
Chairman's address to the general meeting, called to approve placements and executive options, repeats known plans: Browse drilling late 2008 to early 2009, Peru seismic (1000 sq km 3D, 2000 sq km 2D) and Brazil seismic. Notes nearby Santos and Tumbes discoveries by others.
7 July 2008drilling scheduled▼ BadMajor
The Sedco 703 rig is now expected to start Browse drilling in late Q4 2008, running to mid Q1 2009, a slip from the earlier Q3 2008. Three wells satisfy permit commitments; Karoon funds 20% of the two WA-314/315-P wells and 40% of the WA-398-P well.
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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15 May 2008director officer appointment● Neutral
Karoon renewed the service agreements of executive chairman Bob Hosking and director Mark Smith for 3 years. Each is to receive incentive options (750,000 each at $4.00, $4.50 and $5.00), subject to shareholder approval, expiring in 2011.
18 Apr 2008price query● Neutral
Asked about the share price rising from $2.42 to $3.13, Karoon said it knew of no undisclosed information. It pointed to energy-sector interest after the APPEA conference, news of large Santos Basin discoveries near its Brazil blocks, and the coming Browse drilling.
27 Mar 2008drilling progress report● Neutral
The Endurance 3D seismic survey in WA-398-P (at least 1400 sq km, plus about 500 sq km outside the permit) is complete. Data is being processed, with interpretation expected later in 2008 to sharpen leads ahead of drilling. Resolves the January survey start.
14 Mar 2008half year report● Neutral
Half-year report to 31 December 2007 recaps known events: Endurance 3D survey 60% complete, AC/P8 and Peru Z38 farm-in, and Brazil blocks. It also notes Karoon was offered Peru Block 144 (Maranon Basin). Sedco-703 drilling still expected Q3 2008.
22 Jan 2008farm in farm out agreement▲ GoodMajor
Karoon signed a farm-in with Vamex (Pitkin Petroleum subsidiary) for Block Z38, offshore Tumbes Basin, Peru. It earns 20% by funding a 2,000 km 2D seismic survey, with an option for a further 40% via 670 sq km of 3D. Subject to regulatory approvals; its second new country after Brazil.
11 Jan 2008drilling progress report● Neutral
Acquisition of the Endurance 3D seismic survey began in WA-398-P, covering 1400 sq km in the permit and about 500 sq km outside it, and is expected to finish in Q1 2008. It will refine leads ahead of drilling.
11 Dec 2007asset acquisition disposition● Neutral
Karoon completed its purchase of a 66.67% interest in Timor Sea permit AC/P8 from Woodside, agreed in November. It must now seek an extension, as the permit otherwise expires in February 2008, with terms expected in Q1 2008.
29 Nov 2007asset acquisition disposition▲ GoodMajor
Karoon won five offshore Santos Basin exploration blocks in Brazil (850 sq km), its first move outside Australia. It must pay US$25m in signature bonuses and refundable bid bonds in March 2008; funding is from its own cash or possibly a farm-out.
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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15 Nov 2007asset acquisition disposition▲ GoodMajor
Karoon agreed to buy Woodside's 66.67% of Timor Sea permit AC/P8 for A$1m, conditional on partner Talisman's approval and a five-year permit extension. The permit holds two prospects and at least three leads, taking Karoon beyond Browse.
26 Oct 2007investor presentation● Neutral
The chairman's address to shareholders repeats known facts: about $72m cash, 114.4 million shares, roughly $400m market capitalisation, the Sedco 703 drilling from Q3 2008 and the upcoming 3D seismic. No new results or transactions.