karoon gas pair cash in

Karoon Gas pair cash in

9th July 2009, 8:30 WST



Directors of Browse Basin explorer Karoon Gas have cashed in on their company’s status as one of the bestperforming S&P-ASX 200 stocks this year by offloading nearly $12 million worth of stock.

Robert Hosking, executive chairman and Karoon’s founder, has sold $6.6 million worth of scrip while exploration director Mark Smith, who joined the board a month after Mr Hosking in December 2003, offloaded $5.3 million in on-market transactions.

The directors’ dealings were declared yesterday, along with a brief statement explaining that the sales were triggered by plans of Mr Hosking and Mr Smith to exercise unlisted options. Both men hold 2.3 million options with strike prices ranging from $4 to $5.

The two men sold their shares for $8.80 each, just shy of Karoon’s record high $9.30 reached less than two weeks ago. Karoon shares closed 26¢ lower at $8.20 yesterday.

At the start of the year Karoon’s shares were worth only $3.63, before news of a major gas discovery in the Browse Basin off the Kimberley coast in April sent the stock soaring and boosted the company’s market cap to $1.4 billion last night.

Karoon used its high share price to place $149.6 million worth of stock at $6.70 a share to professional investors last month. The proceeds are to be used for its Browse Basin drilling program, including appraisal of the Poseidon find which is estimated to contain about seven trillion cubic feet of gas.

Mr Hosking, also a founding director of Browse Basin player Nexus Energy, retains 11.6 million Karoon shares worth $95.4 million.

Mr Smith still has $14.8 million worth of scrip.

PETER KLINGER