Karoon Gas denies buyback, appraising discovery

Company News

Karoon Gas Australia Limited (ASX:KAR) has denied reports claiming it has made any formal decisions or commitments for a share buyback.  

The oil and gas explorer jumped to the top 200’s best performer last month after selling its stake in the Browse Basin offshore gasfield to Origin Energy Limited (ASX:ORG) for $800 million. 

Reports had speculated the company could be preparing to launch buybacks worth up to 20 per cent of the company’s issued capital.

While Karoon says no deals have been done it has not ruled out the possibility in the future and says it does not wish to limit its options. 

Karoon has also advised it has contracted a drilling rig for the appraisal of the Kangaroo oil discovery in the company’s 65 per cent owned and operated Santos Basin blocks. 

Karoon Gas Australia reported a net loss of just over $8 million in the first half of the 2014 financial year.