(Karoon Energy, 5.Oct.2020) — Karoon Energy Ltd provided the market with the following update on the status of the Baúna asset acquisition:
— Remaining Conditions Precedent: As previously announced, transaction completion is subject to certain remaining conditions precedent under the Sale and Purchase Agreement (the SPA), including the following key outstanding third party/regulatory conditions precedent: (i) Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP) approval, and (ii) FPSO charter assignment.
— ANP Approval: Significant progress has been made towards obtaining ANP approval and Karoon is addressing the ANP’s proposed form of approval and outstanding minor administrative issues relating to finalisation of the parent company guarantee provided by Karoon in favour of the ANP.
— FPSO Charter Assignment: The FPSO charter assignment has also progressed and Karoon expects the documentation associated with this assignment to be finalised and ready for execution after ANP approval is received.
— Expected Transaction Completion: In light of the above, Karoon is now aiming to complete the transaction in the last half of October 2020 and will keep the market updated on progress.
— Transaction Effective Date: As previously announced, the effective date of the transaction remains 1 January 2019 such that the operating costs and revenues arising from Baúna will be captured in the adjustment to the purchase price.
— Sale of Baúna Oil: Karoon is preparing to market its first Baúna cargo following completion of the Baúna transaction.
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