PERTH (miningweekly.com) – ASX-listed Karoon Gas has secured a $275-million senior secured term loan facility to partly fund the acquisition of the Baúna oil field, in the Santos basin, offshore Brazil.
Karoon in July this year announced its plans to acquire the Baúna oil field for a headline consideration of $665-million.
The Baúna oil field consists of two producing oil reservoirs producing some 20-million barrels of oil a day of light sweet crude.
Karoon told shareholders this week that the term loan facility will have a four-year term and will be fully amortised over the loan life. The facility has been priced on a 4% margin over LIBOR.
In addition, the syndicated facility agreement also provided an option for additional funding for the tie-in development of the Patola oil discovery, with the option subject to final lender approval following the Patola reserve certification.
Karoon said that it would now proceed to complete the ancillary documentation and the regulatory approvals with the aim of completing the Baúna oil field acquisition by the first quarter of 2020.