Australian firm Karoon Energy is in talks with Brazil’s Enauta Energia, a subsidiary of Enauta, to purchase a 50% stake in the Atlanta oil field, offshore Brazil.

Karoon has made a conditional, non-binding offer, as well as signed an exclusivity agreement with Enauta Energia for the due diligence and confidential negotiations.

Valid until the end of May 2022, the exclusivity agreement forms part of Karoon’s strategy to pursue value-accretive, inorganic growth opportunities.

Karoon said in a statement: “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“The offer may be withdrawn, or modified, and does not oblige Karoon to proceed with the transaction.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.”

Karoon noted that it is ‘well positioned’ to proceed with the transaction, with $334m of available liquidity as of the end of 2021, and other funding options.

The Atlanta oil field is located in block BS-4 of the Santos basin, that has been in the early production stage since May 2018.

The field is currently producing through an early production system (EPS), which comprise three wells that are connected to the floating production storage and offloading (FPSO) unit Petrojarl I.

As per the estimates, the field holds a 2P reserve of 103.1 million barrels of oil equivalent.