Each one in plain English, with the numbers worked through for a shareholder.
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.
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.
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.
Results of the 26 October 2007 AGM: all resolutions, including the remuneration policy, Mark Smith's re-election and option issues to directors and the Company Secretary, passed on a show of hands. Proxy votes were mostly in favour.
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.
September 2007 quarter: cash A$73.2m. Sedco 703 drilling is expected from Q3 2008, and a 1900 sq km Fugro 3D survey is contracted. Karoon let Gippsland PEP-162 lapse and relinquished 25% of EL4537.
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.
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.
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.
June 2007 quarter: cash rose to A$76.4m after the placement. Sedco 703 rig secured for Q3 2008 drilling; WA-398-P adds 40%. Karoon will not proceed with its Gippsland permits PEP-162 and EL-4537 after the permit years expire.
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.
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.
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.
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.
March 2007 quarter: cash fell to A$36.1m. Browse drilling is expected between late 2007 and early 2008 depending on rig availability, with Karoon holding 49% once ConocoPhillips earns its 51%. Both Gippsland wells are being abandoned.
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.
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.
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.
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.
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.
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.
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.
December 2006 quarter: cash rose to A$42.6m after the placement. ConocoPhillips has taken 51% of Browse, leaving Karoon 49%, and drilling slips to second half 2007 for rig availability, with a permit extension sought. Megascolides-1 sidetrack was abandoned.
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.
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.
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.
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.
Results of the annual general meeting: all four resolutions (remuneration policy, Stephen Power's re-election, non-executive director remuneration review, employee share option plan) passed on a show of hands, with proxy votes mostly in favour. Administrative only.
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.
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.
