Slide 1: Karoon Energy
KAROON ENERGY
Slide 2: Disclaimer
Disclaimer KAROON ENERGY This presentation has been prepared by Karoon Energy Ltd. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this
Slide 3: FY2023 Highlights and Achievements
KAROON ENERGY : Julian Fowles CEO and Managing Director FY2023 Highlights and Achievements
Slide 4: FY23 Overview
FY23 Overview Established profitable production base to underpin growth Increased production and profitability > LTlrate of 0.10, TRIR of 0.411 > Production 7.04 MMbbl (+52% on FY22) > Average realised oil price US$80.20/bbI (-5% on FY22) > Sales revenue US$566.5 million (+47% on FY22) > Underlying
Slide 5: HSSE
HSSE Improved safety performance in FY23 Safety and Environmental Performance FY23 FY22 FY21 Lost Time Injuries 1 4 1 Restricted Work Cases 1 0 0 Medical Treatment Cases 2 fe} 1 Work Exposure Hours 1,947,000 1,027,000 __625,928 Total Recordable Injury Rate (per 200,000 hours) 0.41 O77 0.64 High Pote
Slide 6: Financial Results
KAROON ENERGY : Ray Church EVP and CFO Financial Results
Slide 7: FY23 Financial Highlights
FY23 Financial Highlights bie Strong financial outcomes in revenue, costs and cash REVENUE UNIT PRODUCTION COSTS UNDERLYING EBITDA US$566.5m (4) US$15.75/bbI(/) US$321.8m (4) Up 47% from US$385.1m Down 38% from US$25.36/bbl Up 57% from US$205.2m! CASHFLOW GENERATED INVESTING CASHFLOW CASH & CASH EQU
Slide 8: Underlying result
Underlying result USS million FY23 FY22 Revenue 566.5 385.1 Other income 4l 0.8 Production Costs (incl FPSO depn & finance) (135.0) (117.6) Royalties and other government take (66.7) (41.5) DD&A incl O&G assets (86.4) (55.7) Impact of Inventory Movements (11.5) 6.4 Corporate, Exploration & Other (31
Slide 9: CAPEX
CAPEX Transitioning to capital light operating phase 250 200 150 (ussm) 100 50 97.0 5.0 FY22 mBatina intervention & Patola 238.4 190.9 27 FY23 "Exploration and evaluation NTM KAROON ENERGY Batina intervention and Patola development completed in FY23 Now through peak investment period of FY22 and FY2
Slide 10: FY23 Cash flow
FY23 Cash flow Major projects and Neon drilling funded from operations ussm 800 Prod Spend Receipts (incl FPSO Lease Payment) 700 Royalties and other government take “ “ Corp 500 (26) (4) || 400 300 200 100 158 ° Opening cash &other Exp.&Eval Income tax (79) Hedge Costs — (13) 1. Adjusted for AASB16
Slide 11: Cash and available liquidity
Cash and available liquidity bie Increased production base with untapped borrowing capacity Debt and Liquidity as at 30 June 2023 Total Liquidity (USS Million) > Outstanding debt drawn USS30m, unchanged from 30 June 2022 with Batina interventions, Patola development and Neon control well drilling fu
Slide 12: Capital Allocation Framework
Capital Allocation Framework Building scale to achieve long term sustainable cashflow and shareholder returns ie) S a 0) 2 ° 2 = s Operating cash flow Maintain strong, flexible balance sheet Free cash flow Capital Returns Growth investment - Dividends - Organi portunities in Brazil - On market buyba
Slide 13: Unit Production Costs Reconciliation
Unit Production Costs Reconciliation bie Normalising Opex/bbl for AASB16 capitalised operating leases Cost of Production- Unit Back out . . FY23 Reported related Operating Production . . . AASB 16 Leases costs > Unit production costs include Operating costs (USS million) 62 62 operating costs as per
Slide 14: Reconciliation of Underlying Result to Statutory Result
Reconciliation of Underlying Result! to Statutory Result bie > Change in fair value of contingent consideration recognises movement each year due to revaluation of Petrobras contingent consideration USS million FY23 FY22 EBITDA NPAT EBITDA NPAT Reported financial results 308.5 163.0 (28.4) (64.4) >
Slide 15: Strategy and Outlook
we KAROON - ENERGY watt ccvesuseerssaasscessccacesacsassenaeecues seseuequsensenosaysganttberersceneeneeseeseessesseeseaesesseesteseeesetet et esegay : Julian Fowles CEO and Managing Director Strategy and Outlook
Slide 16: Strategic priorities
Safe, reliable, responsible and cost-effective operations at Batina, in conjunction with our partners Assess technical and commercial feasibility of a potential Neon Foundation development, aiming for Concept Select entry decision in 1OCY 24, subject to viability Targeting value-accretive producing/
Slide 17: BM-S-40: Batina, Patola and Piracaba
ENERGY BM-S-40: Batina, Patola and Piracaba bie Interventions and Patola delivered on time and below revised budget BM-S-40 Piracaba SPS-87D Patola Legend: @® Producing Old @ oroscovery EE Production well ASX Release, Dec 22 Quarterly activities Report dated 24.01.23 SX Release dated 29.3.2023 “Seco
Slide 18: Batina operating performance
Batina operating performance bie ENERGY Focus on maintaining facilities uptime and active well management FPSO efficiency in FY23 100% > Karoon’s highest priority is maintaining safe and healthy work environment, and minimising environmental impact 80% 60% > Due to gas release from HP flare system,
Slide 19: Potential Neon development
Potential Neon development Control wells drilled safely and below budget, feasibility studies underway Neon Wes KAROON ENERGY » Both Neon control wells successful, achieved pre-drill objectives: Interpreted Fld Zones Prospect Neon eel Gols > Neon-1 confirmed 39 API oil and oil-water contacts closely
Slide 20: Assessing Inorganic Growth Options
Assessing Inorganic Growth Options Evaluation ongoing > Continuing to actively assess inorganic growth opportunities > Rigorous and disciplined screening process used, with key criteria including: » Value accretive, with acceptable risk profile > Fundable >» Producing, or close to FID if pre-product
Slide 21: Emissions reduction and sustainability progress
Progress with Batina FPSO Scope 1 emissions reduction achieved via installation of mooring buoy in FY22 and optimising vessel scheduling Expert consulta ppointed to assist with Batina facility monitoring and modelling, to identify further opportunities to reduce emissions and 2 GHG emissions for FY2
Slide 22: Guidance
Guidance! 6 months to 12 months to Period 31Dec 23 30 June 24 (TY23) (NTM) Low High Low High Production (MMbbl) 45 6.0 9 1 Costs Unit Production Costs (US$/bbl)* nN 15 n 15 Other Operating Costs (USS million?> 14 15 26 28 Business Development, share-based payments & Neon studies ae 6 8 12 14 (USS mi
Slide 23: Summary
Summary Focus on creating shareholder value > Significant progress on delivering strategic objectives in FY23, with production increase from 12,600 bopd to ~34,000 bopd at year end, unit cash cost reduced to US$15.75/bbl >» Production expected to increase to 9 - 11 MMbbl in NTM, with lower unit prod
Slide 24: Appendix 1: Royalty reduction, SP and R&D levies
Appendix 1: Royalty reduction, SP and R&D levies Royalties Special Participation rates > Tiered royalty reduction on incremental production from Batina interventions and Patola development applied from November 2022 Lower KAROON ENERGY Upper onwards > Historical 10% royalty rate applies to ANP’s! ba
Slide 25: Appendix 2: Contingent consideration on Batina Acquisition
Appendix 2: bie Contingent consideration on Batina Acquisition! > Contingent consideration of up US$285m plus interest payable Average Brent to Petrobras for Batina acquisition Price (in US$ units) _CY2022 CY2023 CY2024 CY2025 CY2026 Total > Contingent on annual average Platts Dated Brent oil price
Slide 26: Glossary
Glossary Term Definition 19 The period 1 January to 31 March AASB Australian Accounting Standards Board. ANP Agéncia Nacional do Petréleo, Gas Natural e Biocombustiveis. Batina Concession BM-S-40 containing the producing Batina, Piracaba and Patola light oil fields in Brazil. Boepd Barrels of oil eq