“Karoon’s Browse Basin acreage has the potential for over 30 TCF (trillion cubic feet) of gas and 300 million barrels of condensate, greater than the minimum 4TCF required to support a single LNG facility,” the company said in an ASX statement.
Karoon has arranged to raise $12m by placing 10 million fully paid shares at $1.20 each with sophisticated and institutional clients of EL & C Baillieu Stockbroking Ltd, BBY Ltd and Bell Potter Securities.
About 50% of the placement has gone to overseas institutional investors, with the balance being taken by local institutions and sophisticated investors, Karoon said.
The placement is subject to approval of Karoon shareholders at a general meeting to be held on 26 May 2005 at Le Meridien Hotel at Rialto in Melbourne.
In addition Karoon will raise another $3m by making an offer to shareholders pursuant to a shareholder share purchase plan under which eligible shareholders can apply for shares in the company up to a maximum of $5000 per shareholder.
The plan will offer 2,500,000 shares at $1.20 each. In the event of over-subscriptions, applications will be processed on a prorata basis and be subject to scale back on over-subscription.
The record date for this offer has been set at 5pm (EST) on Friday 6 May. Offer documents will be forwarded to eligible shareholders on or about that day. A broker stamping fee of 3% will be paid on successful SPP applications.
It is anticipated that the offer under the plan will close on 17 May, said Karoon. The company does not need to obtain shareholder approval to complete the plan.
