The company said this morning it had placed 14.8 million fully-paid shares, worth $3.45 each, to sophisticated and professional investors through Southern Cross Equities, BBY Ltd, EL&C Baillieu and Intersuisse.

The share placement raised a total of $51.06 million and will take the total KAR shares on issue to about 129 million.

Karoon said the capital raising would give it the flexibility to continue its exploration program in the Browse Basin, off the coast of northwest Western Australia, including in the WA-314-P, WA-315-P and WA-398-P permits.

In addition to this placement, 1.875 million of its shares were sold by Karoon directors to exercise a total of 2.25 million incentive options.

“The company’s future exploration program represents an exciting new phase for the company and one which has the potential to propel Karoon into the upper echelon of Australian petroleum companies,” it said.

The Karoon-Conoco joint venture holds three blocks – WA-314-O, WA-315-P and WA-398-P – which are believed to be highly prospective for large volumes of condensate-rich gas that could be used to feed an LNG plant.

They are also nearby Woodside's Terosa development, which has a proven resource of 21Tcf of gas and 300 million barrels of condensate.

Also in the area is Inpex's giant Icthys field, with 9Tcf and 400MMbbl of proven resource.