Karoon Gas Australia announced the launch of an underwritten placement to raise approximately A$150 million at an offer price of A$5.10. The offer price represents an 8.9% discount to the last trading price of A$5.60 on 6 August 2013.
The proposed placement will strengthen Karoon’s balance sheet to:
Karoon expects a number of significant results from its drilling activities in 2013 and continues to receive strong interest for its farmout opportunities in Australia, Brazil and Peru.
Settlement of the Placement is expected to occur on 13 August 2013, with allotment expected to occur on 14 August 2013. The Placement will be made within Karoon’s placement capacity, and accordingly shareholder approval will not be required.