Karoon Enters Agreement for the Sale of Browse Basin Exploration Permits WA-315-P and WA-398-P to Origin for up to US$800 million.
Karoon has entered into a binding Sale and Purchase Agreement (the “Agreement”) with Origin Energy Limited (“Origin”) for the sale of the Company’s 40% equity interest in Browse Basin exploration permits WA-315-P and WA-398-P for up to US$800 million.
Under the terms of the Agreement, the consideration payable to Karoon is structured as follows:
An upfront cash payment of US$600 million payable upon Completion;
A deferred cash payment of US$75 million payable on Final Investment Decision (“FID”);
A deferred cash payment of US$75 million payable on First Production; and
A deferred resource cash payment of up to US$50 million payable on First Production. Origin will pay US$5 million for every 100 BCFe of Independently Certified 2P reserves exceeding 3.25 Tcfe across the pe