Karoon makes $384m on raising first stages

The news: ASX-listed gas and oil play Karoon Energy has completed the first stages of its fundraising efforts to secure assets in the Gulf of Mexico, locking in roughly $384 million.

The numbers: Karoon's placement raised roughly $170 million while an institutional entitlement offer brought in $214 million via an offer price of $2.05, a 12.4% discount to the five-day volume-weighted average price of $2.34 on Tuesday. The retail component of the entitlement offer will be open from Thursday 23 November to Wednesday, 6 December. Karoon shares were trading at the offer price of $2.05 just before midday AEDT on Friday.

The context: Karoon is aiming to gather roughly $480 million through the raisings, before tapping into a lending facility and existing cash of USD171 million ($264.1 million) to secure the total USD747 million to cover the purchase of the Who Dat and Dome Patrol oil and gas fields offshore of Louisiana.