10/06/2009 - 11:57

Karoon raises $150m for Browse project

10/06/2009 - 11:57

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Melbourne-based explorer Karoon Gas has raised $150 million that will help spur exploration of its joint venture project in the Browse Basin with ConocoPhillips.

Melbourne-based explorer Karoon Gas has raised $150 million that will help spur exploration of its joint venture project in the Browse Basin with ConocoPhillips.

Karoon said it had successfully placed 22.3 million shares at $6.70 each to raise a total of $149.6 million.

Shares in the company last traded at $7.17 at 13:17 AEST, up 26 cents.

Merrill Lynch was the lead manager of the placement.

"The capital raising will provide Karoon with a strong cash position for its continued exploration and appraisal program in the Browse Basin, along with the upcoming exploration programs in Peru and Brazil," Karoon said in a statement today.

Yesterday, the joint venture partners secured a semi-submersible drill rig from Sedco Forex International to resume the Browse drilling program.

The same rig was also used in the successful Poseidon 1 well in April, which both partners claimed as a significant discovery.

Karoon will also launch a share purchase plan with shareholders able to subscribe to securities priced at $6.70 each.

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