Karoon Aims to Complete Stake Sale for Peru Assets in Mid-Year

Karoon Gas Australia Ltd. (KAR), an explorer with oil blocks in South America, is looking to complete the sale of a stake in its assets in Peru in mid-2013 and is set to allow potential partners access to the data.

“We do have multiple interested parties, and we think we’ll end up with at least one of those,” Scott Hosking, chief financial officer of Mt. Martha, Victoria-based Karoon, said today in a phone interview. “That data room will open soon.”

Karoon is developing oil blocks off Peru and Brazil after scrapping a proposed initial public offering of its South American business in November 2010. The holdings in Peru’s Tumbes Basin may hold as much as 1.92 billion barrels of oil, according to Karoon’s estimates in a December presentation.

The company expects to have “an offer and be negotiating the final joint venture agreements” in the middle of the year for the Peruvian assets, Hosking said. Karoon plans to begin drilling in Peru at the end of 2013, he said.

Karoon said today that it found oil at the Kangaroo-1 exploration well in Brazil’s Santos Basin, driving the shares to the highest in eight months in Sydney trading. The shares were 13 percent higher at A$6.11 as of 1:37 p.m. local time.

Colombia’s Pacific Rubiales Energy Corp. (PRE) agreed in September to buy a 35 percent stake in Karoon’s Brazilian holdings, paying $40 million in cash and funding as much as $210 million in exploration costs. The company said in September that it expected to complete a partnership deal in Peru in the first quarter of 2013.

To contact the reporter on this story: James Paton in Sydney at jpaton4@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

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