Why the Karoon Gas Share Price Rose Today
Written on 07 July 2014 by Jason Stevenson
You are here: Home » Stock Market » Australian Share Market » ASX Market Update » Why the Karoon Gas Share Price Rose Today
What Happened to the Karoon Gas Share Price?
Shares of Karoon Gas Australia [ASX:KAR] rose by 3.25% on Monday, closing at $3.18.
Why Did This Happen to KAR Shares?
Confidence is coming back into the Karoon share price after it sold two of its Browse Basin permits (WA-315P & WA398-P) to Origin Energy for roughly $800 million. This transaction is due to be finalised in the third quarter of 2014.
With the company previously lacking funding and balance sheet flexibility, this transaction provides significant value to shareholders.
The transaction combines with the recently announced Carnarvon Basin farm-out by Karoon to Apache. Both transactions represent up to one billion dollars of value for Karoon in up front, carry and future payments.
What Now For Karoon Gas Australia?
Karoon’s strategy and vision have never been clearer.
Karoon’s balance sheet is significantly stronger following these recent transactions. The company is now in a solid position to explore and develop its assets of which many, have significant geological potential.
Over the past four quarters, Karoon has averaged an operating cash burn of roughly $115 million.
As such, the recent transactions should leave Karoon with more than sufficient funds to pursue its aggressive exploration program over the next year. This is great news for shareholders.
Karoon has an exciting 12 months ahead with exploration drilling in Brazil and the Carnarvon Basin.
The share price needs to run through the $3.50 resistance level to rally. Success at the Pharos-1 well at Browse Western Australia, an extension to the Proteus-1 discovery, could be the answer to shareholder prayers.
Jason Stevenson+
Resources Analyst, Diggers and Drillers
http://www.moneymorning.com.au/20140707/karoon-gas-share-price-rose-today.html
Why the Karoon Gas Share Price Rose Today Written on 07 July...
-
- There are more pages in this discussion • 106 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add KAR (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$1.46 |
Change
-0.065(4.26%) |
Mkt cap ! $1.160B | |||
| Open | High | Low | Value | Volume |
| $1.51 | $1.52 | $1.45 | $15.96M | 10.84M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 45 | $1.46 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.47 | 119063 | 3 |
View Market Depth
| Last trade - 16.10pm 27/09/2024 (20 minute delay) ? |
| KAR (ASX) Chart |