Karoon Gas farms out WA-482-P stake to Apache

Karoon Gas Australia Ltd.

Karoon Gas Australia Ltd. reports that its wholly owned subsidiary Karoon Gas FPSO Pty Ltd. has agreed to farm out a 50% interest in Carnarvon Basin Exploration Permit WA‐482‐P to Apache Northwest Pty. Ltd., a wholly owned subsidiary of Apache Corp.

Pursuant to the farm‐out areement, Apache will acquire a 50% interest in the permit on the following terms: It will pay Karoon US$9.04 million in reimbursement of seismic acquisition costs; fund 90% of the drilling costs for one exploration well capped at a value of $63 million (this exploration well will fulfill the Permit Year 3 work obligations); assume operatorship of the permit; and commit to drill an exploration well in the first half of 2015.

Apache is an established and significant operator in the Carnarvon Basin, with a 13-well drilling program offshore Western Australian.

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