Karoon Energy’s subsidiary, Karoon Petróleo & Gás has completed the acquisition of the Baúna oil field located in the Santos Basin, offshore Brazil.
Karoon will pay US$380 million of “firm” consideration and up to US$285 million of “contingent” consideration.
The acquisition delivers Karoon a quality production asset supported by prudent funding arrangements. Baúna remains cash flow positive at current oil prices.
Robert Hosking, Karoon’s Managing Director, said he was delighted to complete the acquisition which is fully aligned with Karoon’s strategy to acquire a producing asset and that Karoon is delighted to commence operating the Baúna asset.
Shares in Karoon Energy (ASX:KAR) are trading 2.56 per cent higher at 80 cents.