What Happened to the Karoon Gas Share Price?
Karoon Gas Australia Limited [ASX:KAR] is an Australian oil and gas exploration firm, operating in Australia, Peru and Brazil. In total KAR has five projects. The two Australian sites are the Browse Basin (offshore gas reservoirs) and the North Carnarvon Basin. The two sites in Peru are the Tumbles and Maranon Basins. And the Santos Basin is in Brazil.
Karoon Gas finished 1.02% higher on Tuesday.
Why Did This Happen to Karoon Gas Shares?
Today’s gains for Karoon Gas have been part of a near two week trend.
On 20 August, the company announced a $92 million share buyback. Karoon plan to buy roughly 10% of the shares on issue. Since this announcement, the share price has risen 7.92%.
What Now for Karoon Gas?
Interest in Karoon Gas is slowly growing.
Free Reports:
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Since its four year low of $2.43 in April this year, the price has rallied. Also, Karoon Gas announced it was selling its 40% stake in two of its Browse Basin permits to Origin Energy for US$600 million.
Now that the company has added some more cash to its balance sheets, it’s turning its attention on the Kangaroo oil discovery outside Brazil. Should results from the Kangaroo-2 well be successful, KAR reckon this site could produce 60,000–80,000 barrels of all per day. The field may have a lifespan of 10–15 years as well.
Once the board makes their decision, it’s estimated it’ll take $3 billion and two and a half years to build the site up to oil production. However, there are early statements suggesting Karoon Gas will look for farm-in agreements to get the site up and running.
This is all good news for the company. However, there’s no guarantee this Kangaroo site will see the share price back over 2009 price of $10.
Shae Smith+
Editor, Money Weekend
The post Why Did the Karoon Gas Price Rise Today? appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
