Origin Acquires Interest in Two Offshore Exploration Permits

Origin Energy Ltd. (ASX:ORG) announced that it has completed its acquisition of Karoon Gas Australia Ltd.’s (ASX:KAR) 40-percent interest in two offshore exploration permits in the Browse Basin, located in Western Australia.

As quoted in the press release:

Under the terms of the transaction, Origin has paid Karoon a US$600 million cash consideration with additional payments of US$75 million payable upon a project Final Investment Decision (FID) and US$75 million payable on first production. A further payment of up to US$50 million will be payable on first production if 2P reserves at the time of FID reach certain thresholds.

Origin’s acquisition of the permits, which contain large and prospective offshore gas fields such as the Poseidon discovery, allows the company to establish a strategic position in one of Australia’s largest recent offshore gas discoveries.

The acquisition complements Origin’s recent farm-ins in the Cooper and Beetaloo basins and the awarding of new exploration acreage to the company in the Bonaparte Basin.

Click here to read the full Origin Energy Ltd. (ASX:ORG) press release.