Ann: Karoon Sucessfully Completes Retail Entitlement Offer, page-46

In a note released last Friday, Macquarie Research gave KAR an outperform rating and 12-month price target of $2.00.

“With Petrobas committed to their $US27 billion divestment program, the Baúna field is more suited to a company such as KAR, who have the capability to focus lifting production volumes and accelerating the production profile. Successfully securing funding was a key step toward de-risking the acquisition, and we expect the deal to close in the [first three months of next year]. We value the [Baúna] project at $US970 million, a 50 per cent premium to purchase price [$US665 million]. The acquisition remains conditional on approvals from Brazil’s upstream regulator (the ANP) and issuance of a new environmental license by the Brazilian environmental agency (IBAMA).” - Macquarie

Source: The Age. 25/11/19

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