Karoon Gas intends to undertake an on-market share buyback over the next 12 months of up to 25,112,076 KAR ordinary shares, or up to approximately 10% of the ordinary shares on issue.
Based on a price of A$3.66 per share, Karoon’s last traded price on Tuesday, 19 August, this would equate to up to approximately A$92 million.
As previously announced, following the sale of 2 of Karoon’s Browse Basin permits (WA-315-P and WA-398-P) to Origin Energy, a review of the company’s capital position was conducted taking into account Karoon’s capital requirements over the medium term, along with an analysis of the various forms of capital management.
The earliest date the Buyback will commence is Wednesday, 3 September.
Press Release, August 20, 2014; Image: Karoon Gas