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Karoon launches major share buy-back

Karoon launches major share buy-back

Photo by Bloomberg

20th August 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Karoon Gas on Wednesday announced that it would undertake a share buy-back valued at some A$92-million.

The oil and gas explorer told shareholders that over the next 12 months, the company would aim to buy back more than 25.1-million shares, or around 10% of the company’s shares on issue, at a price of A$3.66 a share.

Earlier this month, Karoon completed a $600-million transaction with fellow-listed Origin Energy, selling two of its Browse basin permits.

Karoon said that a review of the company’s capital position was conducted following the sale of the assets, and it was thought that a share buy-back would be the most effective mechanism to return the company to surplus capital, and to provide an ongoing benefit to all shareholders through a reduction in the ordinary shares on issue.

“The on-market buy-back highlights the strength of the balance sheet over the medium term and represents a significant milestone for the company and our shareholders,” said executive chairperson Robert Hosking.

“The buy-back will reduce the number of shares on issue and increase the exposure for all shareholders to the upcoming appraisals o the Kangaroo oil discovery and the high-impact, oil-focused 18-month exploration drilling programme.”

The buy-back was expected to start on September 3.

Edited by Creamer Media Reporter

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