Karoon Energy Ltd.'s wholly-owned subsidiary, Karoon Petrleo e Gs Ltda (KPG), has signed a marketing agreement with Shell Western Trading and Supply Limited (Shell West), a member of the Royal Dutch Shell plc group of companies, to trade and ship crude oil production from the Bana field offshore Brazil. The marketing agreement is for a term of up to 5 years and provides Karoon with access to Shell Wests global marketing and shipping platform. As part of the marketing agreement negotiation, Karoon and Shell West have now agreed terms, and Shell West has obtained internal credit approval, for a USD 50 million term loan facility at Karoons Australian business level. It is intended that this loan facility will be used as a reserve working capital facility. Karoon will now seek to finalise the loan facility documents under usual commercial terms. These agreements are subject to financial completion of the Bana transaction and entry into the loan facility is subject to completion of due diligence and negotiation and finalisation of definitive documentation.