Karoon Buys PEPC's 35% Stake in 4 Santos Basin Blocks in Brazil for $20.5M
Karoon Gas Australia Ltd. announced Wednesday that it has entered into a binding Sales and Purchase Agreement for Pacific Exploration and Production Corp.'s (PEPC) 35 percent interest in their jointly held Santos Basin exploration blocks S-M-1037, S-M-1101, S-M-1102, S-M-1165 and S-M-1166 off Brazil for as much as $20.5 million.
The firm will make an upfront cash payment of $15.5 million on completion of the deal and a $5.5 million deferred contingent payment upon first production reaching a minimum of 1 million barrels of oil equivalents from the blocks.
Karoon's acquisition -- subject to approval from the regulator, the Agencia Nacional do Petroleo (ANP), Gas Natural e Biocombustiveis and an approval order from the Superior Court of Justice in Ontario, Canada -- follows PEPC's application for insolvency protection with the Canadian Court in April.
"The acquisition of PEPC's interest in the Blocks maps a clear path forward for Karoon to introduce a new funding partner to progress the Echidna discovery appraisal drilling campaign," Karoon's Managing Director Robert Hosking said in the press release.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.