Canada’s Pacific Exploration & Production Corp. will sell its 35% working interest in the Karoon Blocks concessions offshore Brazil. The company reached an agreement with Karoon Gas Australia Ltd. and Karoon Petroleo & Gas Ltda., an affiliate of Karoon.

The S-M-1101, S-M-1102, S-M-1037, S-M-1165 and S-M 1166 blocks will be sold, and Pacific Exploration will receive US$15.5 million in cash upon closing from Karoon, the company said Sept. 27.

Pacific Exploration could also receive US$5 million subsequently when commercial production reaches 1 million barrels of oil or oil equivalent.

The agreement remains conditional upon approval from Brazil’s Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis, an approval order from the Superior Court of Justice in Ontario, Canada, and other requirements.

Dennis Mills, chair of the independent committee of the board of directors, said Pacific Exploration’s long-term goal to improve liquidity aligns with the sale.