Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Karoon Gas on Wednesday announced that it would undertake a share buy-back valued at some A$92-million.
The oil and gas explorer told shareholders that over the next 12 months, the company would aim to buy back more than 25.1-million shares, or around 10% of the company’s shares on issue, at a price of A$3.66 a share.
Earlier this month, Karoon completed a $600-million transaction with fellow-listed Origin Energy, selling two of its Browse basin permits.
Karoon said that a review of the company’s capital position was conducted following the sale of the assets, and it was thought that a share buy-back would be the most effective mechanism to return the company to surplus capital, and to provide an ongoing benefit to all shareholders through a reduction in the ordinary shares on issue.
“The on-market buy-back highlights the strength of the balance sheet over the medium term and represents a significant milestone for the company and our shareholders,” said executive chairperson Robert Hosking.
“The buy-back will reduce the number of shares on issue and increase the exposure for all shareholders to the upcoming appraisals o the Kangaroo oil discovery and the high-impact, oil-focused 18-month exploration drilling programme.”
The buy-back was expected to start on September 3.