Karoon Gas Australia acquired the Pacific Exploration and Production Corp’s equity interest in Santos Basin exploration blocks S‐M‐1037, S‐M‐1101, S‐M‐1102, S‐M‐ 1165 and S‐M‐1166 for 20.5 million USD. Following transaction, the energy company Karoon Gas Australia received the full equity interest in the five Santos Basin blocks, as previously owned 65%. According to terms of agreement, the Karoon Gas Australia will make an upfront payment of 15.5 million USD to Pacific Exploration and Production Corp and also 5 million USD deferred contingent payment upon production of over 1 million boe from the offshore blocks. The transaction is under approval from the Petroleum Regulator and the Superior Court of Justice in Ontario.
“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”, said the Managing Director of Karoon Gas Australia, Robert Hosking.
The decision to acquire full share in the fields come after Pacific Exploration and Production Corp’s application for insolvency protection with the Superior Court of Justice in Ontario, which was submitted in April 2016. The sale will improve the cash position and decrease its exploratory commitments, which is important for restructuring of the finance-troubled company.
Karoon Gas Australia is a global oil and gas exploration company headquartered in Melbourne, Australia. The company has acquired a global portfolio of oil and gas exploration assets in Australia, Brazil and Peru. The five Santos Basin blocks in Brazil are located on approximately 200 kilometres from the coastline of the State of Santa Catarina and cover an area of 549 sq km.