Karoon Gas Raising $134M to Support Company Operations
Karoon Gas Australia Ltd announced the launch of an underwritten placement to raise approximately $134.4 million (AUD 150 million) at an offer price of $4.57, or AUD 5.10 (Placement). The offer price represents an 8.9 percent discount to the last trading price of $5.01 (AUD 5.60) Aug 6.
The proposed placement will strengthen Karoon's balance sheet to:
- provide financial flexibility to achieve the best possible outcome on current farmout negotiations
- support Karoon's position for rig contract negotiations and purchase of long lead items necessary for entering into new drilling programs pre-farmout. This allows Karoon to progress its drilling planning and commence its drilling programs on schedule; and
- facilitate continued drilling activity in the Australian Browse Basin and Brazil Santos Basin, as well as providing support for new proposed drilling in Peru
Karoon expects a number of significant results from its drilling activities in 2013 and continues to receive strong interest for its farmout opportunities in Australia, Brazil and Peru.
Settlement of the Placement is expected to occur Aug. 13, with allotment expected to occur Aug. 14. The Placement will be made within Karoon's placement capacity and accordingly shareholder approval will not be required.
Karoon will also offer eligible shareholders the opportunity to participate in a Share Purchase Plan, details of which will be announced shortly.
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