Ina statement, Karoon said the funds were for exploration in the Browse and Gippsland basins, but investor interest in its relatively modest onshore Gippsland coalbed methane and natural gas assets is slight.
In contrast, Karoon's Browse Basin acreage has the potential for large gas and condensate fields of sizes suitable for LNG export.
The permits are located less than 10km from the giant Scott Reef/Brecknock gas and condensate fields complex, estimated by Woodside Petroleum to contain roughly 21 trillion cubic feet of recoverable gas reserves with 210 million barrels of condensate.
Cashing in on the interest generated by Woodside's plans to build a Browse Basin hub, Karoon has now raised more than $25 million in the past five months.
In the latest raising, the Melbourne-based junior will place 7.75 million fully paid shares at $1.80 per share to sophisticated and institutional investors in Australia, the US and the UK. The placement was lead managed by BBY Limited (BBY) and co-managed by EL & C Baillieu Stockbroking Ltd.
