KAR SP down 6c on a share volume of 141.6k. Its funny how it...

KAR SP down 6c on a share volume of 141.6k. Its funny how it always falls on low volume but rises on larger volume.

A MC of A$1.425b, which at the current exchange rate of 64.31c equates to a MC of US$916m.

The Petrobras acquisition was ~US$500m and CapEx to date must be around US$400. Is KAR valued at cost?

The current development has some 5 years of production@~30kbpd. Neon represents perhaps another 5 years and OK, I won't mention Clorita. However what used car salesman would not still beat its drum as untapped potential in the most exciting Oil production area in the world?


Scotty recently presented Miss Karoon at the EuroOz and now Macquarie's shows. He's presenting her to display her financial statistics (which we all know are 36 24 36), presumably to potential equity or debt investors.

He mentioned in the last half yearly Q&A his preference to bring in a developing partner for Neon and reduce to non operating partner status, while further outlining his desire to have Karoon invest further in Brazilian or American Oil ventures, even if its a non operating partner interest. Specifically to fill an anticipated void in current production interests and the Neon development.


Reduced production is frustrating but Scotty mentioned the significant investment in the Bauna pipes and wells and his interest in treating them with the respect to maintain them properly.




The gas flare up on the 25Jul was significant and close to the big one which shut down production earlier this year (coincidentally when the temporary tax surcharge was introduced). However the current flare is much lower. Delayed data released tonight, will shed further light and hopefully show the temporary production reduction resolved.


I'm more focused on macro settings rather than micro issues at the moment. China and India are still importing record amounts of Oil (and presumably at a discounted BRICS+ rate) despite China's slowdown and property debacle. Youth unemployment mentioned at 50%.

Only the West are concerned with "climate change" issues. The USA's Oil consumption is still 5x China and 15x India per capita.

Impending world recession may imply reduced Oil/energy use but Russia and Saudi Arabia now determine the PoO. Brent hit about $91.40 last night before settling back to the daystart of $90.64.

Place your bets. I'm staying here.


The PoO may be performing well but Oil Major equity SPs are only fair. Chevron down over 2% last night despite the excellent PoO. Others not so bad.

Interesting that Berkshire Hathoway half year disclosures revealed Buffet selling down some of his Chevron holdings, although only about 3%. Maybe he's been selling more in anticipation of recession? Mind you he was sitting on some nice gains there.