Karoon Energy Ltd · ASX:KAR
Karoon Energy — EurozHartleys Energy Snapshot (November 2021)
20 slides from Karoon Energy's conference presentation, Nov 4, 2021
Slide 1: Presentation to EurozHartleys
For personal use only 4 November 2021 Company Announcements Office ASX Limited Dear Sir / Madam Presentation to EurozHartleys Enclosed is a presentation to be made by the CEO and Managing Director later today. This announcement was authorised by the CEO and Managing Director. Yours faithfully Nick K
Slide 2: Karoon Energy: EurozHartleys Energy Snapshot
For personal use only Karoon Energy EurozHartleys Energy Snapshot 1
Slide 3: Disclaimer
Disclaimer For personal use only 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 informatio
Slide 4: Overview of Karoon Energy
Overview of Karoon Energy Pure oil play with exposure to exciting Brazilian oil industry For personal use only ▪ ASX-listed and Melbourne headquartered, Brazil- focused oil production and development company ▪ Pure oil play, directly exposed to Brent oil price ▪ Independent Board and Chairman, stron
Slide 5: Karoon has entered a new era
Karoon has entered a new era Key strategic milestones achieved since 4Q 2020 For personal use only Fundamental change from explorer to producer – Karoon has delivered Highlights of 1Q FY22 Report Operational delivery Revenue from ▪ Executed transition of Baúna operations from previous operator US$71
Slide 6: Strategic Context
Strategic Context Karoon well positioned to capture emerging oil opportunities For personal use only Oil industry dynamics Upstream capex fell 40% during 2014–19 ▪ Crude oil demand supported to at least 2035 In 2020, it declined another 30%1 Global Upstream Oil & Gas Capex (US$bn) ▪ Many years of un
Slide 7: Baúna: Karoon's anchor asset in Brazil
Baúna: Karoon’s anchor asset in Brazil High quality producing field with excellent sub-surface characteristics For personal use only ▪ Baúna came onstream in 2013 Seismic derived 3D models used for field management and development planning ▪ Production peaked at 70,000 bopd, >135 MMbbl produced to d
Slide 8: Maximising value of Baúna
Maximising value of Baúna Focus on high operational uptime and active field management Process safety, facility integrity & preventive maintenance FPSO – Monthly Uptime 2021 For personal use only • Minimising unplanned shutdowns and downtime due to equipment 100% 100.0% 100.0% 99.7% 99.5% 98.4% 98.4
Slide 9: Baúna interventions and Patola development on track
Baúna interventions and Patola development on track* Forecast to more than double current production, to >30,000 bopd in early CY2023 For personal use only Baúna well intervention project Patola Development ▪ Targeting 5,000 – 10,000 bopd incremental production ▪ Targeting first Patola production in
Slide 10: Indicative production and cost profile
Indicative production and cost profile* Sanctioned projects targeting material production increase and opex/bbl reduction Indicative Production Profile (MMbbl)* Indicative Unit Operating Cost Outlook (US$/bbl)* For personal use only 8 - 10 28 - 32 25 12 - 18 4.2 – 4.6 3.14 FY21A FY22 FY23 FY21A FY22
Slide 11: Potential Neon hub development
Potential Neon hub development Wit in Karoon’s Sout ern Santos eartland For personal use only Great address Karoon portfolio Subsurface Characteristics Goiá Neon Baúna 50km 50km Clorita Brazilian offshore oil basin schematic cross-section ▪ ra ilian offs ore basins world renowned for “Super asin” sc
Slide 12: Maximise potential value of Neon Oil Field
Maximise potential value of Neon Oil Field Alternative development concepts being explored For personal use only ▪ Neon oil field discovered by Echidna-1 exploration well in 2015 Field Contingent Resources1 1C 2C 3C ▪ Located 60km NE of Baúna, ~300m water depth, targeted reservoirs <2km burial (MMbb
Slide 13: Use Karoon's technical and commercial skills for M&A
Use Karoon’s technical and commercial skills for M&A Actively assessing inorganic growth options through a disciplined process ▪ Karoon actively screening for inorganic growth opportunities For personal use only ▪ Petrobras divestment process well-established with motivated seller ▪ High-quality con
Slide 14: Karoon's five pillars of sustainability
Karoon’s five pillars of sustainability Underpinned by oversight from Board Sustainability and Operational Risk Committee For personal use only ▪ Safety is our first priority HSE ▪ Working closely with FPSO operator to improve already strong safety record, >3.5 years without a Lost Time Incident ▪ a
Slide 15: Carbon management action plan – carbon neutral in FY2022
Carbon management action plan – carbon neutral in FY2022 As a new oil producer, Karoon has opportunity to achieve meaningful emissions targets For personal use only Carbon Neutral on Baúna-Patola* now Carbon Carbon Neutral on new assets within Net Zero Neutral five years of purchase* 2035 FY 2022 In
Slide 16: Strong and improving cash position
Strong and improving cash position Consistent Baúna production delivering strong cash flow foundation For personal use only ▪ Current Baúna production provides solid foundation for Quarterly Revenue v Realised Oil Price per bbl growth 1 cargo 2 cargoes 3 cargoes 2 cargoes 100.0 100 ▪ In FY21, genera
Slide 17: Priority uses of capital
Priority uses of capital For personal use only Deliver safe and reliable operations ▪ Deliver production from on-going operations ▪ Investment in long term maintenance to maximise life of facilities Build and maintain strong, flexible ▪ Meet debt obligations and covenants Order of Priority balance s
Slide 18: FY2022 guidance unchanged
FY2022 guidance unchanged1 Will be reviewed with H1 2022 results For personal use only Low High Production (MMbbl) 4.2 4.6 Costs ▪ Unit Production Costs (US$/bbl)2 28 32 ▪ Other Operating Costs (US$ million)3 15 17 ▪ Unit DD&A (US$/bbl)4 12 13 Investment Expenditure ▪ Intervention and Patola Project
Slide 19: Summary: Karoon well positioned to deliver significant value
Summary: Karoon well positioned to deliver significant value Transformation from explorer to producer with clear growth path For personal use only Successful transition from explorer to oil producer following acquisition of Baúna ▪ One of the only companies with pure oil exposure listed on the ASX ▪
Slide 20: For personal use only
For personal use only
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