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    Karoon Energy completes US Gulf of Mexico acquisition

    Karoon Energy (ASX:KAR) has acquired interests in several oil and gas fields in the US Gulf of Mexico (GOM) from LLOG Exploration Offshore, LLC and LLOG Omega Holdings.

    The acquisition includes a 30% working interest in the Who Dat and Dome Patrol oil and gas fields and associated infrastructure, a 16% working interest in the Abilene field, and varying interest in adjacent exploration acreage.

    Karoon Managing Director and Chief Executive Officer (CEO) Julian Fowles says the transaction is expected to be value- and earnings-accretive for the company.

    “The transaction provides a number of strategic benefits to Karoon, including increased scale and both asset and geographic diversification. 

    This long-life producing asset, together with the appraisal and exploration opportunities, will also help offset the natural decline from the Bauna Project in Brazil.”

    This long-life producing asset, together with the appraisal and exploration opportunities, will also help offset the natural decline from the Bauna Project in Brazil”

    Karoon, which has a market capitalisation of $1.64 billion, paid US$684 million to LLOG, comprising the purchase price of $720 million less a US$36 million deposit already paid, in return for the interests.

    Additional payments totalling US$15 million were made in establishment and underwriting fees relating to the debt and equity processes.

    The closing payment was funded by a US$274 million drawdown on Karoon’s US$340 million debt facility and US$312 million raised from a fully underwritten equity issue and the balance from existing cash reserves.

    Karoon Energy is an international oil and gas explorer and producer with assets in Brazil, the US, and Australia.

    Write to Aaliyah Rogan at Mining.com.au

    Images: Karoon Energy
    Aaliyah Rogan
    Aaliyah Rogan
    Recently relocated from a small town in New Zealand to Queensland Australia, Aaliyah Rogan is a fervent journalist who recently completed a Communications/Media degree at Otago University. Aaliyah hopes to excel as a journalist and become an inspiration to others.