Karoon Gas Australia Ltd has received a Change of Control Notice from its joint venture partner, Apache Northwest Pty Ltd on 15 May 2015 relating to Carnarvon Basin exploration permit WA-482-P pursuant to the terms under the Joint Operating Agreement.
The Notice was a result of the sale of Apache Corporation's Australian subsidiary, Apache Energy Limited (renamed Quadrant Energy Australia Limited), including its wholly owned subsidiary Apache Northwest to Macquarie Capital Group Limited and Brookfield Asset Management Inc. for US$2.1 billion, announced 8 April 2015. The transaction closed on 5 June 2015.
As a result of the Change of Control provisions in the JOA, Karoon held pre-emptive rights over Apache Northwest's 50% interest in the Permit which it has subsequently waived.
Apache Northwest advised Karoon that the cash value for its 50% interest in the Permit is US$241 million as at 1 October 2014.