Karoon Energy (ASX:KAR) is set to undertake a fully underwritten equity raising of approximately $284 million to complete the funding of the Baúna oil field acquisition and to support future growth initiatives.
As announced on 25 July 2019, Karoon agreed to acquire a 100 per cent operating interest in the Baúna oil field, offshore southern Santos Basin, Brazil from Petrobras for a headline purchase price of US$665 million.
They have a binding marketing agreement with Shell Western Trading and Supply, of up to 5 years to market, to trade and ship crude from Baúna.
The Baúna oil field acquisition is subject to final Brazilian regulatory approvals, which are expected to be achieved in the first quarter of calendar year 2020.
Shares in Karoon Energy (ASX:KAR) last traded at $1.11.