Karoon Energy Ltd · ASX:KAR
Karoon Energy — Merger or Acquisition (July 2019)
17 slides from Karoon Energy's merger presentation, Jul 25, 2019
Slide 1: Baúna Acquisition
Baúna Acquisition 25 July 2019 Karoon signs binding Sale and Purchase Agreement to purchase the Baúna Oil Field, offshore Santos Basin, Brazil
Slide 2: Resources Assessment
Resources Assessment Reserves and contingent resources estimates (in accordance with SPE-PRMS 2011 guidelines) shown in this presentation are Karoon Energy Ltd’s assessment of the fields contained in the BM-S-40 concession at 14 May 2019. The resources assessment is based on data provided by Petróle
Slide 3: Transformational Acquisition
Transformational Acquisition Karoon has signed a binding sale and purchase agreement to acquire a 100% operated interest in the Baúna oil field in the Santos Basin, Brazil Current field production of ~20 Mbopd (1) and target production growth to an average of ~33 Mbopd(2) during 2022 with total rese
Slide 4: Transaction Summary
Transaction Summary • Karoon to acquire 100% operated interest in the Baúna field in the BM-S-40 concession from Petrobras Transaction (comprising the Baúna and Piracaba reservoirs and the Patola discovery) • Effective date of transaction is 1 January 2019 • Purchase Price of US$665 MM expected to b
Slide 5: Funding Summary
Funding Summary Karoon is proposing to fund the acquisition of Baúna with a combination of existing cash, debt, equity and pre-completion cash flows from the acquisition Existing cash reserves • US$228 MM current cash reserves as at 30 June 2019 • Currently no bank debt Debt funding • Up to US$250 M
Slide 6: Alignment with Corporate Strategy
Alignment with Corporate Strategy Delivering on Karoon’s 3 Pillar Corporate Strategy Key Pillar 1: Acquire high quality cash generating production asset Key Pillar 2: Bring existing assets to production Key Pillar 3: Targeted exploration 6
Slide 7: Baúna Asset Overview
Baúna Asset Overview Well located with simple and efficient operations • BM-S-40 concession is located in the southern Santos Basin, 50-60km from Karoon’s Goiá and Neon fields and 50km from the Clorita exploration block • Shore base located near Itajaí in Santa Catarina state ~200km from Baúna. • Cu
Slide 8: Baúna Geological Summary
Baúna Geological Summary Excellent subsurface characteristics Baúna Well Log Piracaba Well Log Depth Structure Reservoir Depth Mapping High Vcl Poro Baúna Piracaba Vcl Poro Seismic Cross Section* 10m Low Piracaba Baúna Patola *not to scale • Combined structural/stratigraphic traps at depths circa 2,
Slide 9: Baúna Production and Reserves
Baúna Production and Reserves Established production and strong potential through ongoing investment Production Growth Target Reserves and Contingent Resources 40 35 33 Production Karoon Resources Assessment(4) growth from 30 28 Patola Oil Resources at 1 January 2019 (MMbbl) 10 25 Reserves 2P Mbbl /
Slide 10: Base Case Growth Projects
Base Case Growth Projects Incremental production and development opportunities to establish a production hub Patola Tie-in • Patola oil discovery well (SPS-91) drilled in 2011 within BM-S-40 production ring-fence • Similar reservoir characteristics to Baúna and Piracaba reservoirs and confirmed high
Slide 11: Transition to Operatorship
Transition to Operatorship Karoon well placed with experienced production personnel ready for operation Karoon’s Production Capability • Karoon has more than 10 years operating experience in Brazil FPSO Operations • Class A Operator status in Brazil with experienced production personnel in place • T
Slide 12: Strategic Asset Supporting Southern Santos Basin Strategy
Strategic Asset Supporting Southern Santos Basin Strategy Baúna provides synergistic value creation from Karoon’s other southern Santos Basin assets Builds on established • Karoon has been active in the southern Santos Basin for over 10 years southern Santos Basin • Karoon’s team brings significant
Slide 13: Transformational Acquisition
Transformational Acquisition Karoon’s Managing Director, Mr. Robert Hosking said: “The company has been working very hard over the past three years to acquire a high quality production asset with robust economic returns. Through the acquisition of the Baúna asset Karoon has delivered on its highest
Slide 14: Glossary of Terms
Glossary of Terms Term Definition Term Definition ANP Agência Nacional do Petróleo, Gás Natural e Biocombustíveis. EOR Enhanced Oil Recovery American Petroleum Institute’s Inverted scale for denoting the 'lightness' or FPSO Floating production, storage and off-loading facility. API 'heaviness' of cr
Slide 15: Glossary of Terms (cont’d)
Glossary of Terms (cont’d) Term Definition Prospect risk or geologic risk is the assessed chance that the drilling of the prospect will be successful in finding significant volumes of hydrocarbons. The risk is Risk (geological) calculated by multiplying the chance of success of each of the petroleum
Slide 16: 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 17: Karoon Energy
Ki Karoon Energy