Past year: ▼ 4%(1.46 – 2.19 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
4 May 2021investor presentation● Neutral
Macquarie conference presentation repeats known facts: 1.14 MMbbl produced in March quarter, A$173m cash, rig contracted, Patola FID on track for Q2 2021. It adds that a strategic review is underway and talks of potentially doubling production by Q1 2023.
20 Apr 2021contract award▲ GoodMajor
Karoon contracts the Maersk Developer rig, firm value about US$34m, for a four-well Baúna workover targeting 5-10 kbopd extra. Options cover Patola development and a Neon control well. Rig arrives in Brazil in first half 2022; this advances the Patola FID and Neon threads.
29 Mar 2021director officer appointment● NeutralMajor
Karoon creates a Brazil business unit reporting to CEO Fowles and restructures executives. South America GM Tim Hosking leaves, CFO Scott Hosking will step down in H2 2021, and searches start for a Brazil president and a new CFO. Patola FID is now expected in Q2 2021.
25 Feb 2021half year report● Neutral
Interim report for the half-year to 31 December 2020 attaches the full accounts. Balance sheet grew with Baúna: total assets A$1,307m, liabilities A$822.1m (including A$454.2m FPSO lease and A$220.2m restoration obligations). Detail is in the companion results release.
25 Feb 2021half year report● Neutral
First results since buying Baúna: net loss A$2.4m, with A$9.3m gross profit on oil sold 7 Nov-31 Dec 2020. Cash A$133m, no bank debt. FY21 guidance given: 3.0-3.4 MMbbl production, unit costs US$23-27/bbl. Considering switching reporting currency to US$.
28 Jan 2021resource reserve update● Neutral
AGR's update effective 1 January 2021 shows Baúna reserves unchanged from November 2020 apart from production (2.8 MMbbl produced 1 Jul-31 Dec 2020); contingent resources are unchanged. Cumulative output reaches 132.7 MMbbl. Patola FID is now flagged for Q2 2021, versus Q1 previously.
10 Dec 2020production update▲ GoodMajor
Karoon off-loads its first Baúna cargo as operator, over 500,000 barrels, for delivery to Asia. The recent oil price rally should lift forecast revenue. First sale since the 6 November closing.
9 Nov 2020resource reserve update▼ BadMajor
AGR's updated report, effective 1 July 2020, cuts Baúna 2P reserves by 4.6MMbbl mainly because the long-term oil price assumption falls to US$55 from US$65. 2C resources fall 0.9MMbbl. Patola FID is a potential Q1 2021.
9 Nov 2020asset acquisition disposition▲ GoodMajor
Karoon completes the Baúna acquisition, taking 100% and operatorship. It paid US$150m at closing from cash, on top of the US$49.9m deposit, with the rest of the US$380m firm price and up to US$285m contingent due later. Ends the long-pending deal.
9 Nov 2020investor presentation● Neutral
Completion presentation: output about 15.2 kbopd, FPSO at about 50% capacity, and pro forma cash of US$130m with no debt after closing. 2P reserves are 39.2 MMbbl, 2C 101 MMbbl. Share price A$0.78, 553m shares. Largely repeats the completion news.
30 Oct 2020material agreement● Neutral
Final Baúna closing is now set for 6 November 2020, a week later than the 30 October target, after FPSO counterparty Altera&Ocyan agreed. The Petrobras longstop date is extended to 30 November 2020.
26 Oct 2020director officer appointment▲ GoodMajor
Dr Julian Fowles, ex-Shell, Cairn, Petra Energia and Oil Search, is named CEO and Managing Director, starting after the 27 November 2020 AGM. He succeeds founder Robert Hosking, resolving the CEO search; base salary is A$750,000.
23 Oct 2020material agreement▲ GoodMajor
ANP's board approved, with conditions, the Baúna concession transfer, the last outstanding regulatory condition once written confirmation issues. Only FPSO charter assignment remains, which Karoon doesn't expect to delay close. It is aiming to close on 30 October 2020.
5 Oct 2020material agreement● Neutral
Baúna completion is now targeted for the last half of October 2020, later than the earlier end-September goal. ANP approval is progressing and the FPSO charter assignment should follow it. Karoon is preparing to market its first Baúna cargo after completion.
30 Sept 2020director officer appointment▲ GoodMajor
Peter Botten, former 26-year CEO of Oil Search, joins the board as a non-executive director from 1 October 2020. This adds senior oil company experience as Karoon moves into production and while the CEO search is under way.
21 Sept 2020other● Neutral
Appendix 4G, the checklist pointing to Karoon's governance disclosures for the year to 30 June 2020. Administrative filing with no new information.
21 Sept 2020annual report● Neutral
2020 Annual Report restates the strategy: complete Baúna, then lift output from about 16,000 to 25,000-30,000 bopd via workovers and Patola. A Neon control well is planned. Post-deal 2P reserves are 46.8 MMbbl with no debt. Largely repeats known facts.
21 Sept 2020other● Neutral
Annual corporate governance statement, approved 18 September 2020, says Karoon is compliant with the ASX 4th edition recommendations. Compliance document with no new business information.
17 Sept 2020security holder rights change● Neutral
Unlisted employee rights and options were cancelled because performance conditions were not met, including 1.32m rights vesting July 2020 and about 3.0m options at A$1.73 and A$1.77. Other cancellations cover rights vesting 2021 and 2022. Administrative.
28 Aug 2020financial restatement▼ BadMajor
Karoon switches to successful efforts accounting, restating 30 June 2019 so exploration assets fall about A$123m and retained losses rise about A$124m. FY2020 expenses include A$73.4m for the dry Marina-1 well and an A$18.5m Peru inventory write-down. No cash flow impact.
13 Aug 2020regulatory community update▲ Good
Brazil's environmental agency IBAMA issued the new operating licences for Baúna, the first of three key third-party conditions to the acquisition closing. ANP approval and FPSO charter assignment remain. Completion is expected around the end of September quarter 2020.
29 July 2020director officer appointment● NeutralMajor
Founder and Managing Director Robert Hosking will retire at the 2020 AGM after 16 years. An independent search firm has been engaged for a global search for a new CEO. He says he will stay to steer the Baúna ownership transfer.
27 July 2020material agreement▲ GoodMajor
The strategic review concluded that the Southern Santos Basin strategy was best, and Karoon amended the Baúna deal. The US$665m headline price splits into US$380m firm and up to US$285m contingent on 2022-26 Brent prices. Funding now comes from cash, with no debt, replacing the ING loan structure.
27 July 2020investor presentation● Neutral
Presentation on the amended Baúna terms: US$150m payable at close, about US$50m in March 2022, and up to US$285m contingent on Brent. Cash was US$280m at 30 June 2020 with no debt. Close is expected in Q3 2020, with output of about 16,000 bopd. Largely repeats the same-day announcement.
25 June 2020director officer appointment● Neutral
Nick Kennedy replaces Scott Hosking as Company Secretary. Hosking stays as Chief Financial Officer. Administrative change.
30 Apr 2020quarterly activities report▼ BadMajor
March quarter: Brent fell over 65% on COVID-19. Cash was A$504.5m with no debt. Marina-1 was dry. Baúna approvals slowed and debt size is uncertain, so the board began a strategic review due early Q3. Salaries and fees are cut 20% and spending outside Baúna is being eliminated.
13 Mar 2020half year report● Neutral
Interim report for the half-year to 31 December 2019. The visible text covers only the contents, board list and operations overview, with no financial figures. Mark Smith ceased as a director on 29 November 2019.
12 Mar 2020material agreement▼ BadMajor
Karoon says it no longer expects Baúna to complete in the March 2020 quarter, citing market conditions. IBAMA licences and ANP approval are now expected in the June quarter, and the FPSO assignment is outstanding. ING syndication is done, but oil price terms remain open. Cash is A$500m.
27 Feb 2020resource reserve update▲ GoodMajor
AGR's update, effective 1 January 2020, raised Baúna reserves after 2019 production: 1P up 4.0 MMbbl, 2P up 1.2 MMbbl, 3P up 0.8 MMbbl. Contingent resources rose 0.7, 1.0 and 1.2 MMbbl at 1C, 2C and 3C. This updates the August 2019 assessment.
17 Feb 2020drilling result▼ BadMajor
Marina-1 reached 3,021m and found only thin water-bearing sands with no oil and minor gas shows in the primary targets. It will be plugged and abandoned, a dry hole for the 256 million barrel prospect. Karoon says focus returns to completing Baúna.
