Monday 26 October 2020

Karoon Energy Ltd (“Karoon”) provides the market with the following update on the Baúna asset acquisition:

• Karoon is pleased to announce that the Board of Directors of the Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (“ANP”) has approved with conditions, at a board meeting on 22 October 2020 (Brazil time), the assignment of the rights and obligations under Concession Contract BM-S-40 related to the Baúna field. Karoon expects satisfaction of the conditions to occur in the ordinary course of business.

• Once written confirmation of the ANP’s board approval is issued, a further condition precedent to transaction close under the Baúna sale and purchase agreement and the last outstanding regulatory condition precedent will be satisfied.

• The ANP board approval follows the issue of new environmental operational licences by IBAMA (the Brazilian Institute of the Environment and Renewable Natural Resources) as announced to the market on 13 August 2020.

• Transaction close still remains subject to certain conditions precedent, including FPSO charter assignment. In relation to the FPSO charter assignment, Karoon does not consider that this will delay transaction close.

• Karoon is aiming to close the transaction on 30 October 2020 and will keep the market updated on progress.