This involves acquiring the latter’s 35% interest in the Santos basin exploration blocks S‐M‐1037, S‐M‐1101, S‐M‐1102, S‐M‐1165, and S‐M‐1166 for up to $20.5 million, subject to approvals from Agência Nacional do Petróleo, Gás Natural e Biocombustíveis.
It follows Pacific’s application for insolvency protection with the Superior Court of Justice in Ontario, Canada last April.
Karoon would provide:
1. An upfront cash payment of $15.5 million payable on completion
2. A deferred contingent payment of $5 million payable upon first production reaching a minimum of 1 MMboe from the blocks.
Karoon’s managing director Robert Hosking said: “The acquisition of Pacific’s interest in the blocks maps a clear path forward for Karoon to introduce a new funding partner to progress the Echidna discovery appraisal drilling campaign.”
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