Karoon Energy (ASX:KAR) launches equity raising to fund proposed Brazilian acquisition

Company News

by Rachael Jones

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.

Rachael Jones

Finance News Network
Rachael comes to FNN after working for Fairfax Media covering international breaking news, including the global economy and politics. She joined FNN in February 2018. She has reported on Australia’s finance news for various organisations since 2000 and has also interviewed a number of key business players, including Bill Gates. Rachael has also worked across a number of countries, including the UK and the US.