Karoon Energy Ltd (ASX:KAR) has successfully completed the acquisition of interests 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, an approximately 16% working interest in the Abilene field, and varying interests in adjacent exploration acreage. The transaction, effective from 1 October 2023, involved a payment of US$684 million to LLOG, funded by a drawdown on the Company's new debt facility, equity issue, and existing cash reserves. Karoon has already received the economic benefit of the 30% interest in the acquired assets since the effective date, with cash flow net to Karoon between the effective date and completion being US$0.1 million.
We are delighted to have completed the Who Dat acquisition. This transaction is expected to be both value and earnings accretive for Karoon. The Who Dat and Dome Patrol fields are low cost producing assets with near and medium term expansion opportunities, located in a prolific, world class hydrocarbon basin in a stable and well understood regulatory and fiscal jurisdiction. 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 Baúna Project in Brazil. We look forward to working closely with LLOG, a well respected and established offshore GoM operator, and the other joint venture partners to optimise the value of the Who Dat assets.
Karoon Energy Ltd (ASX:KAR) has successfully completed the acquisition of interests in the US Gulf of Mexico, marking a significant milestone in the company's strategic expansion. The acquisition of a 30% working interest in the Who Dat and Dome Patrol fields, along with other assets, is expected to be both value and earnings accretive for Karoon. The acquired assets are low cost producing assets with near and medium term expansion opportunities, providing strategic benefits such as increased scale, asset and geographic diversification. This acquisition, together with the appraisal and exploration opportunities, will help offset the natural decline from the Baúna Project in Brazil. Karoon looks forward to leveraging its partnership with LLOG and other joint venture partners to optimize the value of the acquired assets. The completion of this acquisition positions Karoon Energy for continued growth and value creation in the international oil and gas exploration and production sector.
Sourcehttps://announcements.asx.com.au/asxpdf/20231222/pdf/05yvx8hs2wsm8y.pdf