+ data and comment +

Website: http://www.karoongas.com.au/news.html

Shares: 49 mill +15 mill unlisted, total 64 mill. Share price: $1.90.
Options: KARO: 21.6 mill to convert at 20 cents on or before 30 June 2006. Also 9.5 mill unlisted Options June 2006-2007.
Note: This includes the 7.75 mill shares placed on 11 Aug. 2005.

Fourth Quarter Activities & Cashflow Report
http://stocknessmonster.com/news-item?S=KAR&E=ASX&N=239941
Extract:
Outflow $0.434 mill; Cash $12.797 mill.
Note: Another gross $13.95 mill was raised on 11 Aug. 2005.

EL 4537 Brown Coal resources
As reported previously, the company has Coal in-situ Resource Estimates for EL 4537 in the onshore Gippsand Basin as follows.
Measured 50 Million tonnes
Indicated 210 Million tonnes
Inferred 80 Million tonnes
TOTAL *340 Million tonnes
* contains inferior coal

The deposit is located in the Yarragon area under a thin cover of sands and clays.
_________________________________________

7June 2005: Research report from BBY:
http://www.karoongas.com.au/BBY%20Limited%20KAR%20report%2007June2005.pdf

Extract:
Karoon Gas Australia (KAR) is a junior exploration
company with interests in the offshore Browse Basin, and
onshore Gippsland Basin Australia. The main focus is
developing a potential liquids-stripping or greenfield LNG
project in the Browse Basin.

KAR’s acreage is on trend from the undeveloped Scott Reef-Brecknock-Brecknock South gas and condensate fields. BG International farmed
into the permits to assist a two-year A$75m work program.
#56256;#56343; In late November 2004, KAR acquired from Liberty Petroleum, the exclusive rights to explore and earn 100% in permits WA-314-P and WA-315-P
#56256;#56343; In April 2005, KAR farmed out a 60% interest (and
operatorship) in both permits to BG International who will
fund 90% of A$75m(gross) two-year exploration program.
This includes two commitment wells A$60m (gross)".

Comment: I consider that farmout as one of the best, I have come across: KAR holds 40% and spends $7.5 mill while BG (British Gas) holds 60% but spends $67.5 mill.


Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.