Karoon Energys Game-Changing US Gulf of Mexico Acquisition and A$480 Million Equity Raise

Karoon Energy Limited (ASX: KAR) is set for a transformative acquisition, acquiring a 30% interest in the Who Dat and Dome Patrol oil and gas fields, along with related infrastructure and exploration acreage in the US Gulf of Mexico, for a total consideration of US$720 million. The deal will be funded through US$171 million in cash, US$274 million in debt, and a fully underwritten equity raise of US$300 million (A$480 million).

The equity raise includes a pro-rata accelerated non-renounceable entitlement offer and an institutional placement. This strategic move aims to achieve Karoon's M&A objectives, providing a 57-63% increase in CY24E production, a 75% lift in 2P Reserves, and geographical diversification, establishing a growth platform. The transaction is pending customary conditions.

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