KAR - Karoon Energy

[tech/a]

Another one which has flown under the radar.

Up 17% since posted in Charts of interest.
8/10/16

https://www.aussiestockforums.com/forums/showthread.php?t=31431&page=2

 

[Boggo]

Another one which has flown under the radar.

Up 17% since posted in Charts of interest.

And it just keeps on keeping on

(click to expand)

 

[Boggo]

And today's negative news is an example of where you need the tighter trailing stop on the stocks that take off quickly.

KAR currently down about 20% on negative news, three continuous days of selling off last week, usually a heads up.

(click to expand)

 

[Cam019]

Price has broken out of a descending channel as well as recapturing the 200 SMA. Today, the 50 SMA also crossed the 200 SMA. Potential asymmetrical R:R for a longer term hold.

18 month daily chart:

6 month daily chart:

 

[System]

On December 20th, 2018, Karoon Gas Australia Limited changed its name to Karoon Energy Limited.

 

[greggles]

Did anyone get aboard KAR before it took off this week?

Yesterday the company announced that its wholly owned subsidiary Karoon Petróleo e Gás Ltda has signed a binding sale and purchase agreement to acquire a 100% interest in the Baúna oil field in the Santos Basin, Brazil for US$665 million.

The company is proposing to fund the acquisition of Baúna with a combination of existing cash, debt, equity and pre-completion cash flows from the acquisition.

The Baúna field consists of two producing oil reservoirs, Baúna and Piracaba, which are currently producing light sweet crude at a rate of approximately 20Mbopd. It has total reserves and contingent resources of ~68 MMbbls and KAR is targeting production growth to an average of ~33 Mbopd during 2022.

Overall, it looks like a pretty solid acquisition that will produce strong stable cashflows over the medium to long term.

 

[Skate]

Did anyone get aboard KAR before it took off this week?

Yesterday the company announced that its wholly owned subsidiary Karoon Petróleo e Gás Ltda has signed a binding sale and purchase agreement to acquire a 100% interest in the Baúna oil field in the Santos Basin, Brazil for US$665 million.

The company is proposing to fund the acquisition of Baúna with a combination of existing cash, debt, equity and pre-completion cash flows from the acquisition.

The Baúna field consists of two producing oil reservoirs, Baúna and Piracaba, which are currently producing light sweet crude at a rate of approximately 20Mbopd. It has total reserves and contingent resources of ~68 MMbbls and KAR is targeting production growth to an average of ~33 Mbopd during 2022.

Overall, it looks like a pretty solid acquisition that will produce strong stable cashflows over the medium to long term.

View attachment 96387

Hi @greggles

Yep I'm on..

Skate.

 

[willoneau]

My system didn't pick this one, I filter out stocks higher than 0.7 at this stage but if that was removed i would have been in back in March at 1.14 on daily system and only come up as a buy probably at end of today on my weekly. I don't like that thrust bar on high volume on the weekly so would wait and see if it pulls back to 1.20 .

 

[peter2]

KAR pops up in my scans again and it looks interesting. There was a recent SPP at 0.93 (price touched it) and since then it's looking bullish. The volume since the SPP has been huge and well above average. KAR like most of the oilers, pump and dump quite quickly. I'd be in for a short time, never a long time.

 

[Trav.]

KAR like most of the oilers, pump and dump quite quickly

Not a bad pay packet for the institutions who participated in the SPP. Looks like an easy 15% made for a 3 week hold time. assuming that they exited on the 14/11

Will be interesting to watch so see what it has left in the SP tank

 

[barney]

Will be interesting to watch so see what it has left in the SP tank

Yeah agree.

They raised $284 million which is not far off half their Market Cap so well supported

Today's price action (Inside day) is looking "normal" for further upside depending on the close of course.

Depending on how keen the Traders are ….. I won't be surprised to see it gap back to $1.12 one day this week. If it does, as you say @peter2 … probably pay to be nimble thereafter

 

[barney]

Y I won't be surprised to see it gap back to $1.12 one day this week.

Not sure if its ready to gap, but yesterday's "bar" indicates this is ready to move up again … (if I'm reading it correctly)

 

[tech/a]

Not sure if its ready to gap, but yesterday's "bar" indicates this is ready to move up again … (if I'm reading it correctly)

If you add up total volume from the gap down in October selling far exceeds buying.
So the question is has supply been exhausted.
Yesterdays bar as you point out could indicate that.
Its common for Supply to sell into demand. (Bar before)

You could be right. Something is brewing.
(The 100 pt drop yesterday may have kept
demand away!).

 

[barney]

If you add up total volume from the gap down in October selling far exceeds buying.So the question is has supply been exhausted.

Thanks for the input Tech.

To be honest, this mornings market depth doesn't really support my thoughts just yet so it could just range around for a bit.

I think yesterday's bar indicated a bit of early "mopping up" which I see as positive rather than how the bar looks on face value ….. but that could easily turn out to be a wrong call.

Last Friday's bar will be the eventual acid test as there is resistance around the $1.10 area ….. That's the reason I expect a gap up if/when it does move.

No doubt it will bomb now and I'll have to wipe the egg off my face … lucky I like eggs

 

[Dona Ferentes]

Not a holder, but ... Stranded ?

One frustrated shareholder dumped a line of 15.24 million shares in Thursday afternoon trade, worth about 3 per cent of the company. The trade went through UBS' equities desk and was at 58.25¢ a share, which is about what the stock traded at for most of Wednesday and Thursday. Funds were told it was one institutional investor selling to another. But still, it raised eyebrows.

It comes as Karoon is trading at a significant discount to its cash backing and the company is under pressure to return cash to shareholders. Karoon had $504.5 million of cash and no drawn debt at March 31, and about a $320 million market value.

Of course much of the cash is to cover its proposed Bauna acquisition in Brazil, although there is doubt about whether the investment case will stack up and the deal will complete given economic and financial market changes.

AFR

 

[Dona Ferentes]

has pushed through $2 of late .... closing at $2.19 last week ..... probably on back of the surge in oil prices

Oil producer with exposure to Brazilian oil industry
•Pure oil producer, benefiting from current strength in oil prices
•Successfully mitigated decline curve from mature field in first year of operation
•Production expected to double and opex to nearly halve in early CY2023 from sanctioned Baúna intervention campaign and Patola development
•Optimising Neon Project with potential alternative development plans
•Reviewing potential inorganic growth opportunities through disciplined process
•Strong cash flows from operations
•Healthy balance sheet, US$334m in liquidity at Dec 2021

 

[Dona Ferentes]

Oil producer with exposure to Brazilian oil industry

Works both ways.... I haven't been following KAR, but I presume this isn't beneficial.

https://www.bloomberg.com/news/arti...-oil-tax-crosses-shell-1shell-industry-giants

Brazil’s Surprise Oil Tax Puts $20 Billion in Investment at Risk​

Shell and other drillers have sued to block the levy, which effectively yanks the welcome mat for oil majors.

 

[houtman]

With crude < US$70 and Dow down KAR could drop below $2 today.

May look for an initial holding today.

Anything making a profit in the juniorish end of the market gets extra points atm.

 

[bluekelah]

looks like this stock tracks oil price well and has been on an uptrend past couple years post covid. It should do well if oil continues to climb up this quarter. My stock pick bet for october.

*not vested yet*

 

[finicky]

Market Matters afternoon report:

• Karoon Energy (KAR) +7.2% after bringing its Who Dat operation back online post-Hurricane Helene in the Gulf of Mexico

NOt Held