Karoon Gas Australia (ASX: KAR) has raised $150 million through an institutional placement of shares priced at $5.10 per share, or a 8.9% discount to the last closing price of its share on 6 August 2013.
The raising highlights that capital is still available to companies with the right mix of assets.
Proceeds will be used to provide financial flexibility to achieve the best possible outcome on current farm-out negotiations.
It will also support Karoon's position for rig contract negotiations and purchase of long lead items necessary for entering into new drilling programs pre farm-out, allowing it to progress its drilling planning and commence its drilling programs on schedule.
Finally, it facilitates continued drilling activity in the Australian Browse Basin and Brazil Santos Basin as well as providing support for new proposed drilling in Peru.
Karoon will also offer shareholders the opportunity to subscribe for up to $15,000 in additional shares under a Share Purchase Plan.
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