Karoon terminates exclusivity agreement with Enauta Energia offshore Brazil

Karoon Energy Ltd., Melbourne, has terminated its exclusivity agreement with Enauta Energia SA with respect to due diligence and negotiations to potentially acquire a 50% non-operated interest in Atlanta oil field in the Santos basin offshore Brazil.

The company also has withdrawn its conditional non-binding and incomplete offer for the potential transaction.

Karoon was unable to complete the necessary due diligence and conclude negotiation of acceptable terms during the agreed exclusivity period, the company said.

Given the scale of the Atlanta project, Karoon said it was vital to undertake the preliminary work to its complete satisfaction before moving forward. Time was against it, the company said.