Karoon Gas Australia Ltd
(ASX:KAR) has defended its decision to pull out of listing its South American assets, and says it will not be affected by ditching the initial public offering in Brazil.
In October Karoon said it hoped to raise as much as $US773 million from the IPO to fund exploration programs, but last week abandoned its plans after investors failed to support the venture.
Responding to questions from The Australian, chief financial officer Scott Hosking said that Karoon has sufficient funding in cash to finance all of its global oil and gas work for well over the next year.
Mr Hosking added that regardless of the success of the IPO, financing is not an issue for the company.
Mr Hosking also clarified that the proposed IPO was not a capital raising plan but a value creation plan, and while the capital would have given Karoon the ability to buy other assets, it does not affect its current suite.
Karoon Gas reported a net loss of $14.89 million in the twelve months to 30 June 2010.
