PERTH (miningweekly.com) – ASX-listed Karoon Energy will raise A$284-million through a fully underwritten equity raising to complete the funding to acquire the the Baúna oil field, in the Santos basin, offshore Brazil, and to support future growth initiatives.
The equity raise will comprise a A$67-million institutional placement, and a 1-for-1.06 pro-rata entitlement offer to raise a further A$217-million.
The placement and entitlement offer will consist of some 305.5-million new ordinary shares, representing 123.5% of the existing shares on issue.
Both the placement and the entitlement offer will be priced at 93c a share, representing a 9.3% discount to Karoon’s theoretical ex-rights price, and a 16.6% discount to the last trading price.
Karoon earlier secured a $275-million senior secured term loan facility to partly fund the acquisition of the Baúna oil field, after announcing plans in July to acquire the oil field for $665-million.
The Baúna oil field consists of two producing oil reservoirs producing some 20-million barrels of oil per day of light sweet crude.
“Since the announcement of the Baúna sale and purchase agreement in July, the company has been working with Petrobas on transition arrangements at the same time as progressing the required regulatory approvals,” said Karoon MD Robert Hosking.
“In addition, we have finalised documentation of a senior term loan facility and secured a crude marketing agreement with Shell West, the pre-eminent crude marketer in the region. The equity raising represents the final piece of the Baúna acquisition funding package.”