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Karoon Gas agrees to bridge facility following Browse deal

Karoon Gas agrees to bridge facility following Browse deal

Photo by Bloomberg

9th June 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Karoon Gas Australia has negotiated a $100-million bridge facility with National Australia Bank, to allow for operational cash flow while the company waited to receive funds from its Browse basin permits.

Earlier this month, fellow-listed Origin Energy entered into a conditional sale and purchase agreement with Karoon Gas over the company’s 40% holding in two exploration permits in Western Australia’s Browse basin, in a deal valued up to $800-million.

In terms of the agreement, Origin would pay Karoon $600-million cash upon completion of the agreement, followed by a further $75-million once a final investment decision (FID) was reached and another $75-million on first production.

A further $50-million would be payable on first production if 2P reserves, at the time of the FID, reached certain thresholds.

Edited by Creamer Media Reporter

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