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Karoon enters agreement for sale of Browse Basin exploration permits

Published by
Oilfield Technology,

Karoon has entered into a binding Sale and Purchase Agreement with Origin Energy Limited for the sale of the Company’s 40% equity interest in Browse Basin exploration permits WA-315-P and WA-398-P for up to US$ 800 million.

Under the terms of the Agreement, the consideration payable to Karoon is structured as follows:

  • An upfront cash payment of US$ 600 million payable upon Completion.
  • A deferred cash payment of US$ 75 million payable on Final Investment Decision.
  • A deferred cash payment of US$ 75 million payable on First Production.
  • A deferred resource cash payment of up to US$ 50 million payable on First Production. Origin will pay US$ 5 million for every 100 BCFe of Independently Certified 2P reserves exceeding 3.25 Tcfe across the permits at the time of FID up to a maximum of US$ 50 million.
  • In addition, Origin will be responsible for all costs associated with the current Pharos-1 exploration well, located in permit WA-398-P.

The Agreement remains subject to normal Joint Venture pre-emptive rights and regulatory approval, and is expected to complete during the third Quarter 2014.

As a result of the Agreement, Karoon has requested re-admission to quotation on the ASX effective today, Monday 2 June 2014.

Adapted from a press release by David Bizley

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