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LLOG Exploration is selling these Gulf of Mexico assets
Thanks to $720 million in bidding agreements, Australian oil and gas company Karoon Energy is now extending and diversifying its asset portfolio by acquiring shares in oil and gas assets offshore Louisiana. LLOG Exploration is selling these Gulf of Mexico assets. Karoon evaluated the agreements for the purchase of a 16% share in the Abilene field and a 30% interest in the Who Dat and Dome Patrol oil and gas fields from LLOG Exploration Offshore and LLOG Omega Holdings, as well as associated infrastructure, such as the Who Dat floating production system (FPS).
The nearby area in the U.S. Gulf of Mexico, which includes Who Dat East (40%), Who Dat West (35%), and Who Dat South (30%), is also being acquired by the Australian company. The acquisition will be financed by $274 million in debt, $171 million in cash, and $300 million (A$480 million) in fully underwritten equity raised through an institutional placement and a pro-rata accelerated non-renounceable entitlement offer. According to the corporation, this strategic move is intended to accomplish the company's M&A goals by increasing CY24 output by 56-73%, increasing 2P reserves by 75%, and diversifying the company's geographical base to create a growth platform. The transaction is governed by customary terms.