Yesterday afternoon Karoon provided an updated independent reserves and resources report for the Santos Basin concession BM-S-40 offshore Brazil.

The report was prepared by AGR Petroleum Services Reservoir Management Division and upgraded 2P reserves across the concession by a further 1.2 million barrels of oil equivalent taking total 2P reserves to 46.8MMbbl.

On a 2P + 2C reserve and resource basis the Bauna project is estimated to hold 59MMbbls.

It is currently acquiring 100% ownership of the producing Brazilian BM-S-40 asset from Petrobras for US$665 million (A$954 million), however a timeline outlining progress of the transaction was not provided to shareholders this week.

RBC analyst Ben Wilson said in a note on Wednesday he expected the close of the deal to completed over the next two months.

"With the debt facility finalised and equity raise completed, remaining hurdles to deal completion largely relate to receipt of regulatory approvals," he said.

"We expect these to be relatively low risk and procedural in nature."

RBC's fundamental view retains an ‘Outperform' recommendation. Analysts foresee Karoon occupying a "rare position" in the Australian mid-cap exploration and production space as a material, low cost oil producer.

Karoon was down nearly 6% this morning at 83 cents share and a market cap of $486.6 million.