explorer Dana Petroleum takeover talks had stalled after Korea National Oil Corp (KNOC) said it was unwilling to raise its offer and refused to sign a confidentiality agreement.
Dana said senior board members had met with state-owned KNOC on 6 August following a £1.67bn approach for Dana last month.
Dana said in a statement that it had offered to open its books for due diligence but that KNOC had refused to sign a non-disclosure agreement.
"KNOC's refusal to sign a non-disclosure agreement leaves the Dana board with no way of progressing confidential discussions with KNOC," Dana said.
"The board of Dana looks forward to clarification from KNOC regarding its current intentions in connection with its proposal."