Karoon Energy has signed agreements with LLOG Exploration (LLOG) to buy oil and gas assets offshore US for $720m (A$1.1bn), reports Reuters.

Karoon Energy, an Australian oil and gas exploration company, plans to acquire a 30% stake in the Who Dat and Dome Patrol fields off the coast of Louisiana in the Gulf of Mexico.

It will also buy an approximate 16% stake in the Abilene field.

LLOG, which is backed by investment major Blackstone, has been looking to sell its Gulf of Mexico oil exploration assets.

Through the deals, the Australian oil and gas explorer aims to diversify its operations outside Australia and Brazil.

On a net revenue basis, the Who Dat deepwater oil and gas field is anticipated to contribute between four million and 4.5 million barrels of oil equivalent to Karoon Energy's total output in 2024.

According to Karoon Energy, the addition of the Who Dat field would assist in offsetting a natural decline in production from its offshore operations in Bauna.

The Australian company bought Bauna operations from Brazilian Government-backed Petrobras in 2020.

Karoon Energy plans to raise around A$480m to help fund the acquisition by issuing shares at a price of A$2.05 per share.

Macquarie Capital is the lead manager and underwriter for the capital raise.

To help finance the equity purchases, the business will also take $274m out of a new $340m financing facility that it negotiated with a syndicate of banks including Macquarie and Deutsche Bank.

In the third quarter of 2023, Karoon Energy’s oil sales increased by 66% to $203.9m and production was around 2.85 million barrels.