Karoon has made a conditional, non-binding offer, and signed an exclusivity agreement with Enauta Energia for the due diligence and confidential negotiations
Australia-based oil and gas explorer Karoon Energy confirmed that it is in talks with Enauta Energia to acquire a 50% a stake in the Atlanta oil field in Santos basin, offshore Brazil.
The company has made a conditional, non-binding offer, and signed an exclusivity agreement with Enauta Energia for the due diligence and confidential negotiations.
Karoon said that that its exclusivity agreement, which is valid until the end of May 2022, is in line with its strategy of seeking value-accretive, inorganic growth opportunities, leveraging its existing position in Brazil.
The company is well positioned with $334m of available liquidity at the end of December 2021, current strong cash flows, and capability to access debt financing and other funding options, to proceed with the transaction.
Karoon, in its statement said: “The Atlanta opportunity is just one of several opportunities Karoon continues to evaluate in line with this strategy in the normal course of business.
“The offer may be withdrawn or modified and does not oblige Karoon to proceed with the transaction. Karoon will keep the market informed in accordance with its continuous disclosure obligations.”
Atlanta is a deepwater oil field located in block BS-4 of the Santos Basin, that has been producing through an early production system (EPS) since 2018.
Enauta Energia, a subsidiary of Enauta, is the operator of the block BS-4.
The field is currently producing through an Early Production System (EPS) – comprising three wells connected to the FPSO Petrojarl I.
It is estimated to have a 2P reserve of 103.1 million barrels of oil equivalent, and has already produced more than 15 million barrels of oil.
Enauta Participações is planning for the full development of the field, based on the data obtained and technical studies conducted during the production through the EPS.
A full development system for the field would include drilling of additional wells, connected to a 50,000 barrel a day capacity floating production and storage operation.