Karoon Energy has completed a share placement to raise approximately $175 million, giving the company the funds it requires to acquire the Bauna oil field offshore Brazil.
Bauna is located in the Santos Basin offshore Brazil. Karoon announced it would acquire the asset from Pertobas for $954 million in July.
The offshore site produces 20 million barrels of oil per day with this expected to expand to 33 million barrels of oil per day during 2022.
Karoon managing director Robert Hosking the acquisition of Bauna represents a new phase for the comapny as a significant ASX listed oil exploration and production company.
“We now look forward to completing the retail entitlement offer, which is the final financial component for Karoon to acquire the Baúna asset to the benefit of Karoon’s shareholders,” Hosking said.
“I would like to thank current and new shareholders for their support and look forward to an exciting period ahead for Karoon.”
The placement and the institutional entitlement offer closed significantly oversubscribed with support from both existing and new institutional shareholders, together raising approximately $175 million at the offer price of 93 cents per new share.