Karoon Energy Ltd · ASX:KAR
Karoon Energy — Shareholder Meeting (November 2023)
30 slides from Karoon Energy's shareholder meeting presentation, Nov 23, 2023
Slide 1: 2023 AGM – Address by Chairman and Presentation by CEO
23 November 2023 Company Announcements Office ASX Limited Dear Sir / Madam For personal use only 2023 Annual General Meeting – Address by Chairman and Presentation by CEO In accordance with ASX Listing Rule 3.13.3, enclosed is the Chairman’s address and CEO Presentation to be delivered at the Karoon
Slide 2: Chairman's Address
ASX RELEASE 23 November 2023 | ASX: KAR 2023 Annual General Meeting Chairman’s Address The 2023 financial year was a busy one for Karoon. We successfully completed the Baúna intervention campaign and the Patola Development, as well as drilling two control wells on the Neon field. These projects were
Slide 3: Chairman's Address (continued)
Underlying Net Profit after Tax, from just under US$90 million to US$146 million. The Statutory Net Profit after Tax in FY23 was US$163 million, compared to a US$64 million loss in FY22. Karoon ended FY23 in a good financial position, with net cash of US$45 million. This was despite a significant US
Slide 4: Chairman's Address: Community and FY23 Remuneration Outcomes
community projects in Brazil. I was fortunate to see some of these projects first-hand when the Board visited Brazil in July, and shareholders should be proud to see the positive impacts these investments are having in our local communities. FY23 Remuneration Outcomes The Company delivered on most,
Slide 5: MD and CEO's Address
I would like to take this opportunity to commend the entire Karoon team, past and present, for their hard work and dedication in delivering the transformation of Karoon over the last five years. Last, but certainly not least, I also thank you, our shareholders, for your continued loyalty and support
Slide 6: CEO Address: Baúna Summary
Slide 6: Baúna summary Slide 6 summarises the outcomes of the Intervention and Patola Projects. Even with the increased work intensity and managing a multitude of different work fronts, our teams delivered significantly improved safety outcomes. Production peaked at over 40,000 bopd in late March, h
Slide 7: CEO Address: Neon Development
Slide 10: Neon Development The potential Neon concepts under consideration include a standalone FPSO development or a subsea tie-back. Our teams are evaluating the advantages and disadvantages of each of these concepts. We plan to provide an update on Neon in the first quarter of CY24, when we shall
Slide 8: CEO Address: Who Dat Acquisition and Capital Allocation
Slide 14: Acquisition of Who Dat The acquisition is transformational for Karoon, lifting our working interest reserves by 75% and our production by some 60%. The significant contingent and low risk prospective resources close to the production facility in Who Dat East, West and South are expected to
Slide 9: CEO Address: Closing Remarks
Neon development. While we shall spend some time ensuring we are positioned to get the full value from the Who Dat acquisition, we shall also continue to seek value-adding new opportunities in each of the two world class basins where we are now present, balanced with the commitment to initiate cash
Slide 10: About Karoon Energy and Forward-Looking Statements
ABOUT KAROON ENERGY LTD Karoon Energy Ltd. is an international oil and gas exploration and production company with assets in Brazil and Australia and is an ASX listed company. Karoon’s vision is to be a leading, independent international energy company that adapts to a dynamic world in an entreprene
Slide 11: Karoon Energy Annual General Meeting November 2023
For personal use only Karoon Energy Annual General Meeting 23 November 2023
Slide 12: Disclaimer
Disclaimer 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 presentation
Slide 13: CEO Address
For personal use only Julian Fowles CEO and Managing Director CEO and Address
Slide 14: Delivering results and advancing strategy
Delivering results and advancing strategy Major production increase in FY23, maturing growth opportunities Completed Baúna intervention campaign and Patola development safely, on time and within For personal use only budget. Resulted in 52% production increase and 70% higher underlying NPAT Two succ
Slide 15: Trading Update strong performance
Trading Update strong performance First full quarter of Baúna production post interventions & Patola For personal use only Higher production & Advancing growth Progress on sustainability Strong balance sheet revenue in Sept Q 23 strategy objectives Sept Q sales revenue US$203.9 Progressed Neon subsu
Slide 16: BM-S-40: Baúna, Patola and Piracaba
BM-S-40: Baúna, Patola and Piracaba Interventions and Patola delivered safely, on time and within budget BM-S-40 Baúna intervention campaign and Patola development completed during FY23 For personal use only PRA-1 Personal safety improved on FY22 and no material environmental SPS-93 SPS-57 SPS-92 in
Slide 17: Baúna operating performance
Baúna operating performance Focus on safety and reliability Quarterly Production (MMbbl) Production shut-in for 3.0 Baúna six weeks due to gas leak Highest priority is maintaining a safe and healthy work environment, intervention and minimising environmental impact For personal use only 2.5 complete
Slide 18: Possible FPSO Life Extension Projects
Possible FPSO Life Extension Projects Studies ongoing on extending Baúna Project life (i) from 2028 to end 2032 (beyond current A&O lease) and (ii) potential extension from 2033 to 2038 (subject to contractual negotiations) For personal use only Booked 1C, 2C and 3C Contingent Resources of 10.5 MMbb
Slide 19: Organic Growth: Potential Neon development
Organic Growth: Potential Neon development Control wells drilled safely and below budget; feasibility studies underway Both Neon control wells successful, achieved pre-drill objectives: For personal use only Neon-1 confirmed 39 API oil and oil-water contacts closely aligned to seismic predictions Ne
Slide 20: Neon foundation project concepts under consideration
Neon foundation project concepts under consideration Stand-alone FPSO or subsea tieback Concept 1 Standalone FPSO Development Concepts being evaluated include: Standalone FPSO development S-M-1037 For personal use only New build or conversion / redeployed unit Subsea tie-back: Neon Neon field tied b
Slide 21: Neon hub-style development
Neon hub-style development Possible longer-term opportunities 2C Contingent Resources and 2U Prospective Resources of >100 MMbbl in Neon area: For personal use only Undrilled Neon West prospect located 2km west of Neon. Potentially part of Foundation Project. Structurally and stratigraphically analo
Slide 22: Acquisition of Who Dat assets in Gulf of Mexico
Acquisition of Who Dat assets in Gulf of Mexico Compelling value proposition Karoon to acquire 30% interest in offshore Who Dat and Dome Patrol Acquisition consideration of US$720m 5 funded by cash, debt and a For personal use only oil and gas fields, associated infrastructure and adjacent explorati
Slide 23: High margin production asset
High margin production asset Material growth underway, with development and exploration upside Location Mississippi Canyon, US Gulf of Mexico (offshore Louisiana, ~800m water US Gulf of Mexico Mississippi Canyon, United For personal use only depth) States Current production rate 1 ~42,000 boepd gros
Slide 24: Transformational impact
Transformational impact Material increase in Reserves, Resources and production CY24E Production Guidance 2P Reserves (MMboe) 1 2C + 2U Resources (MMboe) 1,4 (MMboe) 2,3 For personal use only Oil Gas 2C 2U Guidance range Potential conversion of 5.6 MMboe (NRI) of 2C Resources to 2P Reserves followin
Slide 25: Capital Allocation Framework
Capital Allocation Framework Building scale to achieve long term sustainable cashflow and shareholder returns Operating cash flow For personal use only Priority is to support safe and reliable operations and meet capital commitments including debt repayments Non-discretionary capital spend Capital a
Slide 26: Sustainability
Sustainability Focus on carbon emissions, social projects Scope 1 and 2 GHG emissions for FY22 1 fully offset by VER Agreement with Shell Western Supply and Trading. Anticipate being Carbon Neutral 1 for For personal use only FY23, aiming for Net Zero2 by 2035 Target for being carbon neutral and Net
Slide 27: Summary
Summary Focus on creating shareholder value Significant progress on delivering strategic objectives For personal use only US GoM acquisition is transformational, adding high margin, long term production, as well as infrastructure-led appraisal and exploration opportunities Focus on maintaining safe,
Slide 28: Appendix 1: Guidance
Appendix 1: Guidance 1 Proforma CY24 12 months to Period BASIS OF GUIDANCE 31 Dec 24 For personal use only Low High 1. Production 2 Brazil MMboe 8.0 10.0 2. Production assumes drilling results and expected future development and appraisal projects being delivered in Who Dat (NRI) MMboe 4.0 4.5 accor
Slide 29: Appendix 2: Glossary
Appendix 2: Glossary Term Definition ASX Australian Securities Exchange Baúna Concession BM-S-40 containing the producing Baúna, Piracaba and Patola light oil fields in Brazil. For personal use only Boe Barrel of oil equivalent Boepd Barrels of oil equivalent per day bbl or barrel Barrel of oil = 42
Slide 30: Karoon Energy
For personal KAROON ENERGY