Karoon Energy, an Australia-listed company, has announced its plans to purchase stakes in two offshore oil and gas fields in the United States for a total cost of US$720 million plus additional expenses. This strategic move aims to reduce the company’s reliance on Brazil by diversifying its operations and gaining a foothold in the Gulf of Mexico.
Upon completion of the deal, Karoon will hold a 30% interest in the Who Dat and Dome Patrol fields, located off the coast of Louisiana. The acquisition also includes associated infrastructure and a portion of exploration acreage.
To finance this acquisition, Karoon intends to raise AUD 480 million (US$312 million) in fresh equity. The underwritten raising will consist of a AUD 310 million entitlement offer and a AUD 170 million placement of stock with institutional investors.
This acquisition is expected to significantly boost Karoon’s production next year, with estimates suggesting an increase of 57-63%. Moreover, the company’s proved and probable oil and gas reserves are projected to grow by approximately 75%.
Commenting on the deal, CEO Julian Fowles emphasized the advantages of operating in the Gulf of Mexico. Recognizing its stable regulatory and fiscal regime, Fowles believes this expansion will contribute to the company’s long-term growth and success, complementing their existing operations in the Bauna oil field in Brazil.