Past year: ▼ 4%(1.46 – 2.19 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
26 Oct 2007investor presentation● Neutral
AGM presentation repeats Browse facts: 20 tcf plus 600mmbbl risked prospective resource and three wells from Q3 2008. It adds planned joint venture Browse spending of about A$250m in 2007-08 and says Karoon is seeking new assets in Australia and overseas.
11 Oct 2007price query● Neutral
Responding to an ASX query on the share price rising from $2.25 to $3.39, Karoon said it knew of no undisclosed news. It cited new broker research and Woodside's Browse announcement, and disclosed it is negotiating to buy Woodside's 66.67% of permit AC/P8 for $1m.
8 Oct 2007contract award▲ Good
Karoon contracted Fugro-Geoteam to acquire about 1900 sq km of 3D seismic in and around WA-398-P, starting late in Q4 2007. It will sharpen prospects and well positioning ahead of the 2008 drilling programme.
26 Sept 2007annual report● Neutral
Annual report for the year to 30 June 2007 recaps the ConocoPhillips farm-out, the WA-398-P award, A$65m raised and the failed Megascolides wells. Chairman cites risked contingent resource of 20 tcf gas and 600mmbbl condensate in WA-314/315-P. No new events.
18 July 2007contract award● NeutralMajor
Karoon and ConocoPhillips signed the Sedco 703 semi-submersible rig for 200–225 days, with drilling expected from Q3 2008 for three Browse wells. Well deadlines were extended 12 months, to 11 February 2009 (WA-314/315-P) and 30 April 2009 (WA-398-P). This resolves the open rig search but pushes drilling later.
14 May 2007regulatory community update▲ GoodMajor
Permit WA-398-P, south of and contiguous with the existing Browse permits, was granted to Karoon (40%) and ConocoPhillips (60%) for six years from 1 May 2007. Year 1 commits one well and a 1400 sq km 3D survey. This follows the offer noted in the May presentation.
8 May 2007investor presentation● Neutral
May 2007 status report repeats known Browse facts (30 tcf plus 600mmbbl risked, two wells planned Q4 2007–Q1 2008). Notes pro forma cash of A$76.8m including the pending placement, and that a joint venture with ConocoPhillips has been offered permit WA06-6.
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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26 Apr 2007other● Neutral
Karoon declines an offered Victorian geothermal exploration permit, GEP 10, citing a reassessment of current activities. A small decision with no cost or figures given.
16 Mar 2007regulatory community update▲ GoodMajor
The regulator granted the Browse joint venture a 12-month extension: Year 3 work now runs to 11 February 2008, and the permit terms extend to 11 February 2011. This gives more time to secure a rig and drill the two wells.
1 Mar 2007admin correction● Neutral
Clarifies that the condensate and LPG yield figures were Karoon's own calculations from the WorleyParsons gas analysis, not WorleyParsons' predictions. The 1 tcf to about 100 million barrels of liquids estimate stands. Amended release attached.
21 Feb 2007admin correction● Neutral
Corrects two typing errors in the morning release: a 1 tcf discovery, not 10 tcf, could yield about 100 million barrels of condensate and LPG, and the market will be told when a drilling contract is secured. Amended release attached.
21 Feb 2007drilling result▼ BadMajor
Karoon cancelled the third Gippsland well, Raniformis-1, because the Rintouls Creek Sandstone had very low permeability and an uncertain distribution. It also said Browse seismic supported over 20 tcf of risked potential, and that a 10 tcf discovery might yield about 100 million barrels of condensate and LPG.
2 Feb 2007drilling progress report▼ Bad
Megascolides-2 is being plugged. Karoon is reviewing results before deciding on the third well, Raniformis-1, and has postponed that decision about five weeks. The rig moves to other Victorian locations.
31 Jan 2007drilling result▼ BadMajor
Megascolides-2 reached 2130m total depth with no commercially significant hydrocarbon shows, including in deeper reservoirs, and will be plugged and abandoned. A second dry hole for the Gippsland program.
5 Jan 2007drilling spud● Neutral
Karoon spudded Megascolides-2, the second Gippsland well, on 4 January 2007, near the crest of the Megascolides structure. Its target is more than 200m shallower than Megascolides-1, where better rock quality is hoped for.
28 Dec 2006drilling result▼ BadMajor
The Megascolides-1 sidetrack showed good oil staining but very low permeability, so it is being plugged and abandoned. This is a disappointing result for the follow-up to the 2004 oil zone. Megascolides-2 is next, with potential for 2.5 million barrels.
14 Dec 2006drilling spud● NeutralMajor
Karoon spudded the first of three Gippsland wells on 13 December 2006 on the 100%-owned PEP 162. It is a re-entry and sidetrack of Megascolides-1, which in 2004 found a ten-metre oil-bearing zone that was never flow tested.
1 Dec 2006other● Neutral
Executive directors Robert Hosking and Mark Smith sold shares to repay margin loans taken to convert options, and to pay tax. The company says it is personal financial reorganisation, not a reflection of operations, and no further sales are intended. No sale size is given.
3 Nov 2006investor presentation● Neutral
AGM presentation restates known facts: about 93.4 million shares, A$45m cash after farm-out and fundraising, and two Browse wells planned for the first or second quarter of 2007. It cites Browse risked potential of 30 tcf plus 600 million barrels of condensate.
3 Nov 2006investor presentation● Neutral
Chairman's AGM address repeats the ConocoPhillips farm-out terms and says Karoon expects about $45m cash and about 93.4 million shares by mid-November. Gippsland results are expected in the first quarter of 2007. Largely known facts.
1 Nov 2006drilling scheduled▲ Good
Drilling contract with Century Drilling signed for the three-well onshore Gippsland program, starting mid-November 2006, with rig mobilisation begun. Three prospects of about 3 million barrels each are ready; minimum economic size is 500,000 barrels. Follows the 2004 Megascolides-1 oil shows.
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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9 Oct 2006farm in farm out agreement▲ GoodMajor
Karoon farms out up to 60% of Browse permits WA-314-P and WA-315-P to ConocoPhillips: 51% for US$9.6m reimbursement plus 80% of the third-year program, with one well per permit estimated at US$60–80m. ConocoPhillips can earn a further 9% by funding 80% of the next US$125m. This resolves the long-running farm-out search.
6 Oct 2006annual report● Neutral
2006 annual report: Karoon raised A$18.25m during the year and estimates risked Browse potential at 15–30 tcf of gas and 300 million barrels of condensate. Up to 3 Gippsland wells are planned. Several potential Browse partners are reported to be doing due diligence.
3 Oct 2006farm in farm out agreement▲ Good
Karoon says it is finalising Browse farm-in arrangements for WA-314-P and WA-315-P with interested parties, and expects a board decision to be announced shortly. No terms are given yet.
28 Sept 2006annual report● Neutral
Full-year financial report to 30 June 2006, covering the Gippsland permits and the Browse permits acquired during the year. The excerpt shows no new operational results; the board is Hosking, Smith, Atkins and Power.
17 Aug 2006admin correction● Neutral
Share registry stays with Computershare but moves to its Abbotsford, Victoria office from 1 September 2006. Administrative only.
3 Aug 2006drilling progress report▲ Good
The last Browse 3D survey finished under budget, completing and exceeding the Year 2 commitments. Early interpretation confirms the Updip Buffon and A Lead sizes. Data rooms for farm-out are booked to end August. A letter of intent was signed with Century Drilling for Rig 11 for a November 2006 Gippsland start, and Lino Barro joins as Engineering Manager.
21 June 2006resource reserve update▲ Good
Gippsland update: 10 leads identified, four of them worked up for drilling, each estimated at 2.5–3.5 million barrels. Karoon says a 3 million barrel field could be worth about A$25/barrel NPV, and a drilling program is expected to start in Q1 2007, using Upstream Petroleum to secure a rig. Browse 3D is due mid-July.
