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The junior explorer told the Australian Stock Exchange this morning that it has agreed to place 12.186 million fully paid shares at $1.80 each to sophisticated and institutional investors in Australia and the United Kingdom.
Money raised under the placement will fund Karoon’s share of a two-well program in the Browse Basin, extended drilling in the Gippsland Basin and for general working capital.
In the Browse Basin, Karoon this month farmed-out a 60% interest in its WA-314-P and WA-315-P permits to ConocoPhillips, the Darwin LNG operator.
In addition to repaying back earlier seismic costs, ConocoPhillips has also agreed to pay 80% of the costs to drill one exploration well in each permit, including testing. The total cost of this third-year work program is estimated to be between $60 million and $80 million.
