11 Feb 2020drilling progress report● Neutral
Marina-1 reached 1,654m and set casing. Shallow sands showed water and thin gas shows, not considered commercial. The deeper primary targets are still to be drilled. The well is on time and on budget.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
28 Jan 2020drilling spud● NeutralMajor
Drilling of Marina-1 began in Peru's Block Z-38 (Karoon 40%, operator) with the Stena Forth, planned to take about 30 days to roughly 3,000m. It targets a 256 million barrel gross (102 million net) prospective resource.
9 Jan 2020drilling progress report● Neutral
The Stena Forth reached Callao, Lima, and will refuel and change crew for one to two weeks before heading to the Marina-1 location. Spud is still expected in the last week of January 2020, pending customs and final permits.
23 Dec 2019drilling scheduled● Neutral
The Stena Forth has begun the final leg to Peru after collecting casing in Brazil. It is expected in Peruvian waters in January 2020, with Marina-1 expected to spud in the last week of January. Gross prospective resource remains 256 million barrels.
29 Nov 2019other● Neutral
Chairman's AGM address calls FY2019 transformational and repeats the board refresh plan, with Smith, Barbosa and Atkins leaving. It notes new committees, including a sustainability and operational risk committee, and a simplified pay structure after past remuneration report protest votes.
29 Nov 2019investor presentation● Neutral
AGM corporate review presentation repeating the Baúna rationale, three-pillar strategy, funding package, about A$520m cash and Marina-1 timing. Nothing new in the text provided.
26 Nov 2019investor presentation● Neutral
South America update presentation restating the Baúna deal and funding: about 19,000 bopd, plans to grow production over 50% in two years, Marina-1 spud early Q1 2020, and total cash about A$520m including the raising. Mostly repeats known facts.
15 Nov 2019contract award▲ GoodMajor
Karoon contracts the Stena Forth drillship, via a well slot assigned from Tullow's rig contract, for the Marina-1 well in Peru's Block Z-38 (Karoon 40%). Drilling is planned for early Q1 2020, targeting 256 million barrels gross (102 million net) at 3,026m planned depth.
15 Nov 2019capital raising announcement▲ GoodMajor
The retail offer closed with about 49% take-up, raising about A$109m at A$0.93 and taking the total raised to about A$284m. Underwriters Macquarie and RBC take the shortfall. This completes the raising begun on 23 October; management says it funds Baúna and Marina-1.
30 Oct 2019capital raising announcement● Neutral
Retail Entitlement Offer booklet and entitlement form: 1 for 1.06 at A$0.93, fully underwritten, closing 12 November 2019. The visible text is legal notices and contents; terms repeat the earlier announcements.
30 Oct 2019capital raising announcement● Neutral
Retail offer booklet for the 1-for-1.06 entitlement offer at A$0.93 was posted to eligible shareholders; a section numbering error on page 45 was corrected. The offer closes 12 November 2019. Administrative, no new terms.
28 Oct 2019director officer appointment● NeutralMajor
Karoon plans to refresh its board ahead of Baúna completion (Q1 2020), adding independent directors with production and development experience and possibly shrinking the board. Founder Mark Smith won't seek re-election, and Barbosa and Atkins plan to retire, likely at the 2020 AGM.
25 Oct 2019capital raising announcement▲ Good
The placement and institutional part of the entitlement offer closed oversubscribed, raising about A$175m at A$0.93. The retail offer, expected to raise about A$109m, opens 30 October and closes 12 November. Settlement is on 31 October.
25 Oct 2019capital raising announcement● Neutral
Cover letter and booklet for the retail entitlement offer: 1 for 1.06 at A$0.93, fully underwritten, opening 30 October. The closing date is stated as 12 November. Terms repeat the 23 October announcement.
23 Oct 2019investor presentation● Neutral
Presentation supporting the 23 October Baúna acquisition and A$284m equity raising. The visible text is disclaimers only; the raising terms are covered in the same-day announcement. No new facts in the text provided.
23 Oct 2019capital raising announcement● NeutralMajor
Karoon launches a fully underwritten A$284m equity raising at A$0.93 a share: A$67m placement plus a 1-for-1.06 entitlement offer of about A$217m. It funds the rest of Baúna, and Marina-1. New shares equal 123.5% of those on issue. The offer is a 16.6% discount to the last price.
21 Oct 2019material agreement▲ GoodMajor
Karoon signs a marketing agreement of up to 5 years with Shell West to sell and ship Baúna oil. Shell West has also credit-approved terms for a US$50m reserve working capital loan, still subject to documentation. Both depend on Baúna completing.
14 Oct 2019other● Neutral
Karoon denies media reports that it has launched an equity raising, saying none had been launched or investors approached. It repeats that it intends to raise equity for any remaining Baúna funding. An oil marketing deal is described as nearing completion.
14 Oct 2019debt financing▲ GoodMajor
Karoon signs an underwritten senior secured term loan of up to US$275m with ING for Baúna, at 4% over LIBOR for up to 4 years. This firms up the earlier up-to-US$250m commitment. Completion of the acquisition is now expected in Q1 2020.
7 Oct 2019investor presentation● Neutral
October investor presentation on the Baúna acquisition. The visible text repeats earlier resource tables (Neon/Goiá net 2C 82 mmbbl) and disclaimers; the Baúna content is truncated, so no new facts are stated here.
25 Sept 2019other● Neutral
Appendix 4G, the checklist pointing to where the corporate governance disclosures sit, lodged with the annual report. Administrative filing with no business substance.
25 Sept 2019annual report▲ Good
FY2019 annual report calls the Baúna purchase transformative, still needing funding, commercial and regulatory approvals. Baúna would give Karoon its first reserves: 52.5 million barrels 2P plus 15 million barrels 2C. Neon/Goiá development plan was lodged with the regulator in August 2019.
25 Sept 2019other● Neutral
Corporate governance statement for FY2019, approved by the board on 24 September 2019. Karoon says it complies with current ASX recommendations and is preparing for the 4th edition rules, required from 1 July 2020. No business developments.
29 Aug 2019resource reserve update▲ GoodMajor
Independent consultant AGR's report on Baúna, which Karoon is buying, covers reserves and contingent resources, with 120 million barrels already produced to end-2018 and reserves assessed to 2031. The volumes are not in the text provided. Karoon's full statement waits for completion.
26 July 2019investor presentation● Neutral
Call transcript where management repeats the Baúna terms: US$665m headline price, US$49m deposit, closing adjustments of about US$150-200m, and completion expected in the first half of 2020. Adds that regulatory approval is expected to take 6-12 months. No new transaction.
25 July 2019investor presentation● NeutralMajor
Presentation on Baúna: about 68 mmbbl reserves and contingent resources; US$49.9m deposit paid; price expected to fall by about US$140-200m at close. Funding is US$228m cash, up to US$250m ING loan, and an intended equity raising. Up to US$100m contingent payments if oil is high.
25 July 2019asset acquisition disposition▲ GoodMajor
Karoon signs a binding deal to buy 100% of the Baúna field (about 20,000 barrels a day) from Petrobras for a US$665m headline price, offset by cash flows since 1 January 2019. Regulatory approval is expected in the first half of 2020. This delivers its top strategic goal.
15 July 2019other● Neutral
ASX paused trading in Karoon pending a further announcement. The reason is not stated here; the same-day media-response release suggests it relates to the Baúna bid (inference).
15 July 2019material agreement▲ GoodMajor
Karoon confirms it is the high bidder for 100% of Petrobras's BM-S-40 concession containing the producing Baúna field. This is the long-sought production acquisition, still subject to Petrobras board and governance approval.
6 May 2019farm in farm out completion▲ GoodMajor
Tullow's farm-out of 35% of Peru Block Z-38, announced January 2018, is complete. Tullow funds 43.75% of the first well (capped at US$27.5m at 100%) and pays US$2m now plus US$7m on a commercial discovery. Marina-1 targeted early 2020 (256 mmbbl gross).