KAR - Karoon Energy

[Miner]

KAR did very well today and congratulations to all holders (DNH)

I read however this recommendation in THE BULL with Sell recommendation which I do not believe

"Steven Hing, Novus Capital

Karoon Gas (KAR)

Widely pushed last year as a “baby Woodside”, this gas producer has enjoyed a stunning run in recent times, almost quadrupling in price. The company recently traded above $9 and announced a share purchase plan at $6.70. The stock looks set to fall from these lofty heights, possibly back to $6. Despite making a large discovery, the company is still continuing exploration and will need to do feasibility studies before producing any gas."

 

[wipz]

That broker is eating his own words now, I bet he wanted to buy more..
Anyway, KT1 should have spudded by now, awaiting an announcement from the JV.
It's soon to be groundhog day as hoskings has stated that KT has the potential to provide a discovery of equal size & magnitude to Poseidon.

My precious

 

[jancha]

Yes I was looking at getting into KAR @ $9 until I read Steven Hings report. Kind of put me off. Someone once said if a broker says buy you sell & sell you buy. I think one of them had WPL as a sell @ around $40 at the time. They were up around $44? since. Not bad. Makes you wonder what they get paid for.

 

[dude27]

The ride continues. Read in an article on The West that karoon is tipped to hit $17 per share by credit suise pending positive drill results.

Hopefully drill results will be positive!

Note bias: recently purchased and holding!

 

[YELNATS]

KAR has taken quite a tumble today to as low as $8.33 on release of a drilling report at about 11.25am.

I didn't think the report was too bad, except perhaps the statement:

Quote
As with the recent gas discovery well, Poseidon-1, even if successful, Kontiki-1 is planned to be plugged and abandoned following final well evaluation and production testing if applicable.
Unquote

Does anyone have any comments on why the market has treated KAR so harshly today?

 

[skyQuake]

KAR has taken quite a tumble today to as low as $8.33 on release of a drilling report at about 11.25am.

I didn't think the report was too bad, except perhaps the statement:

Quote
As with the recent gas discovery well, Poseidon-1, even if successful, Kontiki-1 is planned to be plugged and abandoned following final well evaluation and production testing if applicable.
Unquote

Does anyone have any comments on why the market has treated KAR so harshly today?

They've pretty much said No gas. Which is problematic as that was the main driver behind the share price.

 

[ShareGuy]

This also happened on the 19 May when a drilling rig got stuck, just turned out to be a good buying opportunity. as will this one IMO

 

[milothedog]

This is from someone who doesn't follow KAR closely....but the wells are exploration wells, always planned to be P&A. They are drilled to get information about the size and formation of the field.

 

[YELNATS]

They've pretty much said No gas. Which is problematic as that was the main driver behind the share price.

This also happened on the 19 May when a drilling rig got stuck, just turned out to be a good buying opportunity. as will this one IMO

This is from someone who doesn't follow KAR closely....but the wells are exploration wells, always planned to be P&A. They are drilled to get information about the size and formation of the field.

Thanks guys for your somewhat varied responses.

Have been taken aback by today's ann and the market unfavourable reaction.

Not sure how serious this setback is today, but still hanging on although now I have set a stop-loss at $7.50.

 

[tashimoto7]

Hi Yelnats,

I was a bit surprised by the drop today too as:
* they still have to test the well for oil and gas (the process they didn't quite get right at Poseidon);
* they haven't drilled all the way to the target depth (and Poseidon was deeper than they predicted); and
* they've still found 40 metres or so of play so far.

Nearly all exploration wells are plugged and abandoned so that is not really a concern. Any way I took today's plunge as a chance to top up some more.

 

[DVEOUS]

WOW!
It's closed to a level beneath that, prior to the exposure on "Inside Business" on ABC TV.

Looks like it's time for Karoon to come up with the goods, or else.

I bets lots got suckered in with this one, with their over sensationalized announcements.
It's like watching the TEN News.

Will it bounce back though, because it is an excellent buying opportunity if that were the case.
Anyone have any views on whether KAR has the potential to come up with something tangible?

 

[Nero64]

Will it bounce back though, because it is an excellent buying opportunity if that were the case.
Anyone have any views on whether KAR has the potential to come up with something tangible?

They said AED oil was a great buying opportunity as well when it started slipping from $11.

There looks like there is some support around the $7 mark. If you trade it use stops.

 

[Wysiwyg]

Fandy naming drill sites Poseidon. Obviously a comedic movie buff among the directors.
As for the price drop ... will horizontal S&R play a roll.

 

[catman]

Nero, KAR ain't no AED.

It's not some one trick pony like AED was and has a major oiler spreading the word about the size of the Poseidon discovery. Furthermore, these guys have some top self acreage next door to WPL's giant Torosa along with the Brazilian assets where Petrobras have just discovered a 500 million barrel oil feilds within 5km's of KAR's permits along trend.

You do the research if you can be bothered.

AED THIS AIN'T.

 

[Largesse]

Pretty unloved over here is old KAR.

Anyone have thoughts on most recent drilling update?
Reading between the lines, there has been some unexpected outcome in the last few meters of drilling but not much info provided in the update.

My take: I see it as bullish and will personally be looking to add to the current holding tomorrow morning after the Dubai World debacle gave us a decent buying op.

Morgan Stanley have rated probability of success on P2 as between 70-80%, with a re-rating in the multiples and Citi have been very positive in everything i've read.

Not a bad R/R if you ask me.

I expect some form of gap up tomorrow, but quietly hoping it doesn't.

Would love to hear some other followers thoughts

 

[white_goodman]

Pretty unloved over here is old KAR.

Anyone have thoughts on most recent drilling update?
Reading between the lines, there has been some unexpected outcome in the last few meters of drilling but not much info provided in the update.

My take: I see it as bullish and will personally be looking to add to the current holding tomorrow morning after the Dubai World debacle gave us a decent buying op.

Morgan Stanley have rated probability of success on P2 as between 70-80%, with a re-rating in the multiples and Citi have been very positive in everything i've read.

Not a bad R/R if you ask me.

I expect some form of gap up tomorrow, but quietly hoping it doesn't.

Would love to hear some other followers thoughts

Well if you ask me...

It's a dog with fleas, pal. What else you got besides connections at the airport.....

 

[Largesse]

fortunately, no one did ask you.



now, can someone who doesn't shave their chest please respond?

 

[shaw38]

fortunately, no one did ask you.



now, can someone who doesn't shave their chest please respond?

I'm with you Largesse
I would expect an announcement in the next 2 days re results of core sample taken. I reckon we are in for a good xmas with this one about to explode.

 

[skc]

KAR down 25% today to $8 square thanks to "inconclusive" drilling results.

This stock has such a good record of falling into the abyss and then crawling its way back out...

19 May 09 - Opened at 5.86 but hit a low of $4.64 (down 20%) on some bad update

24 Oct 09 - Closed at $10.2 the day before, gapped open at $9.50 to a low of $7.9 (22.5%)

14 Jan 10 - Down 25%

Let's see if there are any further updates on the drilling and if KAR can rise again for the 4th time.

 

[YELNATS]

KAR in trading halt this morning until Feb 4 pending an announcement regarding their Browse Basin Acreage.

Any ideas of what the ann may be? KAR could use some good news after recent falls.