Karoon Energy (Karoon) has announced that its wholly-owned subsidiary, Karoon Petróleo & Gás, has acquired a 100% operating interest in the Baúna field, offshore Brazil, according to a press release.
Robbert Hosking, Managing Director of Karoon, said, “We are delighted to finally assume operatorship of the Baúna asset which will enable Karoon to transform from an oil and gas exploration company to a substantial oil production company. We are looking forward to continuing running the Baúna field in a safe and efficient manner while seeking to realize the full value of the field for our shareholders via our planned workovers of Baúna’s underutilized production infrastructure and the development of the Neon and Patola fields.”
Despite the implications of the oil price crash, Bauna is still considered to be a cash flow positive at the current oil prices, dating November 9.
As per the agreement, the purchaser is obliged to pay $380 million of firm consideration, with an additional total of up to $285 million of contingent consideration. The deal will be funded from Karoon’s existing cash and organic cashflows from the Baúna asset.