Karoon Energy Ltd (ASX:KAR) announces that it has provided notice to Enauta Energia S.A. to terminate the Exclusivity Agreement entered into to undertake due diligence and negotiations in connection with potentially acquiring a 50% non-operated interest in the Atlanta oil field, Santos basin, offshore Brazil. Karoon has also withdrawn its conditional, non-binding and incomplete offer in respect of the potential transaction.

Karoon was unable to complete the necessary due diligence and conclude negotiation of acceptable terms in respect of the potential transaction during the agreed exclusivity period. Given the material scale of the Atlanta project, undertaking and completing satisfactory due diligence and maintaining acceptable terms and risk levels were considered vital by Karoon.

Karoon will continue to evaluate opportunities in line with its announced strategy of seeking value-accretive, inorganic growth opportunities in the normal course of business.

This announcement was authorised by the Chief Executive Officer and Managing Director of Karoon Energy Ltd.