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General Information

Karoon Gas Australia Ltd
Oil & Gas Exploration & Production

Current Price Data+

Current Price Open High Low Last Close Volume Price Movement
$2.35 $2.19 $2.36 $2.17 $2.17 843052 $0.18 ( 8.29% )
  • +Security prices are delayed by least 20 minutes and are indicative only.

Current Broker Consensus Recommendation

Strong Buy

Company Overview

Business Description
Karoon Gas Australia Limited (KAR) is an Australian oil and gas exploration company operating in Australia, Brazil and Peru. KAR currently has 5 projects, the producing Browse Basin offshore gas reservoirs and the North Carnarvon Basin (Australia), the Tumbles and Maranon Basins (Peru) and Santos Basin (Brazil).
Strategy Analysis
The Karoon Board and management are committed to securing high quality hydrocarbon exploration areas with the right partner. KAR is currently in a JV with ConocoPhillips in regards to the WA-389-P permit, with Karoon contributing 40% equity. The Board believes that the Browse Basin permits are ideally located and will continue to take advantage of continuingly favourable hydrocarbon prices. The company strategy will focus around capitalizing on oil prices and accelerating exploration programs. KAR has completed processing seismic surveys of WA-314P and WA-316-P and is now interpreting the data set in preparation for the selection of drilling targets. The Poseidon Prospect remains a high grade source of production, with other areas in that region, anticipated to result in important additions to the potential resource base Karoon Gas Australia reported positive cash flow of $27.63m for the quarter ended 31 December 2012. Operating cash flow for the period was $(53.17m). Payments for exploration and evaluation were $(51.98m). Investing cash flow was $80.8m. Financing cash flow was nil. Cash in hand at the end of the quarter was $228.25m. Key activities during the quarter included the successful testing of the first well in the phase two Browse Basin drilling campaign, with the Boreas-1 exploration well achieving an equipment constrained stabilised gas flow rate of 30.2 million standard cubic feet per day through a 40/64" choke at a well head pressure of 3,300 psia and an associated condensate rate of 18 barrels per million standard cubic feet. In addition, drilling in Brazil commenced with the Kangaroo-1 exploration well, which spudded during December 2012.

Financial Summary

Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2014 A -5.5 -2.2 0.0% 0.0 0.0 0.0% 0.0%
2013 A -10.9 -4.9 0.0% 0.0 0.0 0.0% 0.0%
2012 A -3.2 -1.4 0.0% 0.0 0.0 0.0% 0.0%

Peer Comparison

Company Mkt Cap EPS Growth (%) P/E (%) Dividend Yield (%)
2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
Beach Energy (BPT) $1,197M 0.8455 -0.6169 -0.5803 4.6371 12.1053 28.8401 2.17% 2.36% 2.08%
Karoon (KAR) $535M 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.00% 0.00% 0.00%
Oil Search (OSH) $11,131M 0.6947 0.4520 -0.0594 25.2243 17.3717 18.4689 2.34% 2.47% 2.41%
Santos (STO) $7,153M 0.0505 -0.6447 1.8667 13.0850 36.8285 12.8468 0.00% 2.50% 5.41%
Woodside Petroleum (WPL) $28,796M 0.5477 -0.3880 -0.0846 9.7702 15.9647 17.4401 8.90% 5.00% 4.59%

Financial Summary

Earnings P/E Ratio P/B Ratio P/E Growth
Company 0.00 0.00 0.78 0.00
Market 0.89 16.40 1.32 1.33
Sector 1.07 12.50 0.53 0.26


Name Position Start Date
Mr Mark Alexander Smith Executive Director, Exploration Manager 16/04/2004
Mr Robert (Bob) Michael Hosking Managing Director 16/04/2004
Dr Geoffrey David Klingner Non-Executive Chairman 19/12/2014
Mr Clark A.N. Davey Non-Executive Director 01/10/2010
Mr Bernard Wheelahan Non-Executive Director 24/06/2014
Mr Peter Turnbull Non-Executive Director 06/06/2014
Mr Geoff Atkins Non-Executive Director 22/02/2005
Mr Jose Coutinho Barbosa Non-Executive Director 31/08/2011


Name Position
Edward Munks Chief Operating Officer
Scott Hosking Company Secretary
Tim Hosking South American General Manager and Chief Executive Officer Brazil

Substantial Shareholders

Holding Name
35,152,430 (13.73%) Wellington Management Company
26,358,356 (10.30%) Talbot Group Holdings Pty Ltd
17,226,929 (6.73%) Paradice Investment Management Pty Ltd
13,023,854 (5.09%) IOOF Holdings Limited

Calendar of Events

Date Event
28 April 2016 Report (Quarterly)
29 January 2016 Report (Quarterly)
30 October 2015 Report (Quarterly)
11 September 2015 Report (Annual)
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