Karoon Energy Ltd (ASX:KAR)

Robert Hosking
MD
Market Cap (AUD): 315.2M
Sector: Energy
Last Trade (AUD): 0.57 +0 (+0%)
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1. About

Karoon Energy Ltd (ASX:KAR) is a global oil and gas exploration and production company headquartered in Melbourne, Australia, with country offices in Brazil and Peru.

Karoon was founded as an exploration led company, looking for unique opportunities containing large potential and proven targets in basins with proven petroleum systems. Through this strategy, Karoon strives to create shareholder value, by first applying its geographical and geotechnical expertise to identify valuable early stage acreage, then leverage high equity interests to explore and appraise and finally commercialise opportunities while retaining meaningful equity interests in the assets as they go into production.

This strategy proved successful, as shortly after listing Karoon made its first significant strategic move and acquired acreage in one of Australia’s emerging LNG provinces, the Browse Basin. Over the next decade the Browse region saw an unprecedented level of LNG activity, during which time Karoon discovered the multi-TCF Poseidon gas discovery 2009. Poseidon was subsequently sold by Karoon during June 2014 for US$600 million, and a contingent milestone consideration of up to US$200 million.

During 2008 Karoon sought to broaden its exploration portfolio and was attracted to the Santos Basin, offshore Brazil by the basin geology, at the same time as the major pre-salt discoveries were being made in Brazil. Karoon secured a footprint with 5 blocks during Bid Round 9, and subsequently made 3 oil discoveries between 2012 and 2015, with the Neon and Goiá light oil discoveries providing a potential future strategic growth opportunity for the Company.

Following the sale of the Poseidon gas discovery during June 2014, the Company turned its efforts and resources to achieving a corporate vision to transform Karoon from an exploration company into an emerging independent energy company with material hydrocarbon production, providing a foundation for future exploration and production growth.

From 2015 Karoon worked toward securing a foundation production or development asset to underpin the next decade of growth and beyond.  Efforts have been focussed on the regions where Karoon has a strong knowledge base and operating presence, those being Brazil, Peru and Australia.

In July 2019 Karoon announced the signing of a binding sale and purchase agreement (SPA) to acquire an operated 100% equity interest in the BM-S-40 concession containing the Baúna oil field in the Santos Basin offshore Brazil. The acquisition of Baúna moves Karoon directly into production, marking a new phase in Karoon’s history.

Karoon is now transforming into a global energy company with new production to underpin profitable and sustainable growth through a broad pipeline of development projects and a focused exploration portfolio.

2. Business model

3. Strategy

4. Markets

5. Competition

6. History

7. Team

8. Financials

9. Risk