Macquarie says Karoon worth $5.15 if oil > 100, page-665

KAR Enterprise Value profile @ time of GOM Acquisition:
MC - A$1.64b (based on SP of $2.05)
Cash at Bank - US$80m (A$123m)
US Debt - US$300m (A$462m)
Petrobras Deferred Acquisition Liability - US$220m (A$338m)
Imputed EV: A$2.317b

KAR Enterprise Value profile @ 30Jun24:
MC - A$1.364b
Cash at Bank - US$282m (A$434m)
US Debt - US$350m (A$538m)
Petrobras Deferred Acquisition Liability - US$132m (A$200m)
Imputed EV: A$1.668b

Exchange rate of 65c used.





Net debt of US$67.8m doesn't feel burdensome.

Our Cash position would certainly be better now without the production downgrades at both Bauna and Who Dat.

I also wonder about Cash earnings from Who Dat. I can imagine them sitting in the Who Dat JV Bank A/C and not reflected in the KAR Cash at Bank balance.


For ~ 5 years now ESG demands have restricted fossil fuel development debt financing. The BOD have said as much.

Obtaining funding for the US$1b needed to develop Neon will be no walk in the park (FID due late 2025). With the RBL extension due, we currently have liquidity available of close to A$900m. An additional Notes issue will be required as the BOD have intimated, when they said the initial Notes issue was a good start.

Engineering viability and FPSO issues aside, funding is a principle issue in the Neon go ahead. Partnering up sounds great but at what cost?


The Oil price has rarely been cheaper than today's price ... when measured in Gold.




All the TA believers may get a semi from the current head and shoulders pattern the chart now displays.