Karoon Energy Ltd · ASX:KAR
Karoon Energy — H1 FY2021 Earnings Presentation
24 slides from Karoon Energy's earnings presentation, Feb 25, 2021
Slide 1: Interim Financial Report – 2021 Financial Year – ASX Release and Investor Presentation
25 February 2021 Company Announcements Office ASX Limited Dear Sir / Madam Interim Financial Report – 2021 Financial Year – ASX Release and Investor Presentation Attached are the following documents in relation to Karoon Energy Ltd’s interim financial report for the financial half-year ended 31 Dece
Slide 2: Karoon Completes Transformational Baúna transaction and Delivers First Profitable Production
ASX RELEASE Issued 25 February 2021 Karoon Completes Transformational Baúna transaction and Delivers First Profitable Production Karoon (ASX:KAR) is pleased to announce its first financial result following the transformational acquisition of a 100% interest in the producing Baúna oil field (includin
Slide 3: FY21 Initial Guidance
FY21 Initial Guidance (as at 25 February 2021)1 Low High Production (mmbbls) 3.0 3.4 Operating Expenditure Unit Production Costs (US$/bbl)2 23 27 Other Operating Costs (A$ million)3 14 16 Investment Expenditure - Intervention and Patola Projects (US$ million)4 34 38 - Exploration and Evaluation (US$
Slide 4: Balance sheet strength
Balance sheet strength At the end of the year, Karoon had cash holdings of A$133 million, and nil bank debt. Comments from Chief Executive Officer and Managing Director Dr Julian Fowles: “The first half of financial year 2021 has been a transformational period for Karoon, becoming a producing global
Slide 5: Glossary and Important Note
This announcement has been authorised for release by the Board of Karoon Energy Ltd. Glossary Term Definition 1H First half A$ Australian dollars bbl barrel FY21 Financial year ending 30 June 2021 Karoon Karoon Energy Ltd and its subsidiaries kbbls thousand barrels of oil mmbbls million barrels of o
Slide 6: Forward-looking Statements
Karoon’s strategic vision is to transform into a global E&P company with material production to underpin growth through a highly prospective exploration portfolio and entrepreneurial spirit. Forward-looking Statements Petroleum exploration and production operations rely on the interpretation of comp
Slide 7: FY21 Half Year Results Presentation
FY21 Half Year Results Presentation 25 February 2021
Slide 8: Disclaimer / Definitions
Disclaimer / Definitions 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 contai
Slide 9: Karoon Energy Overview
Karoon Energy Overview Karoon’s transformation to become a global oil and gas production company • One of the largest oil producers on the ASX • Production of 14.7 kbopd (as at 31 December 2020) Positioned for growth • Relatively low risk pathway to potentially double production by FY2023 • Evolutio
Slide 10: Karoon Energy Overview (cont.)
Karoon Energy Overview (cont.) Karoon is one of the only pure oil plays on ASX Brent Price – ICE v Karoon • Growing oil demand as economies rebound from pandemic lockdowns Share Price 80 1.80 • Karoon is an unhedged pure oil producer following the acquisition of Baúna 70 1.60 • Since announcement of
Slide 11: From Explorer to Producer
From Explorer to Producer As Karoon makes the transition from explorer to producer, the organisation structure is evolving • Retirement of Founding CEO and MD, Mr Robert Hosking; Appointment of new CEO and MD, Dr Julian Fowles in November 2020 Refreshed • Retirement of long standing non-executive di
Slide 12: Health, Safety, Security and Environment – Overview
Health, Safety, Security and Environment – Overview Emphasis on Safe and Reliable Operations Karoon HSE Performance Karoon Safety Culture • No significant safety or environmental • Karoon initiatives incidents since taking over operatorship, reinforcing strong although two minor incidents did occur
Slide 13: Near Term Growth Projects on Track
Near Term Growth Projects on Track Baúna Well Intervention Program and Patola Development on track for contract signature and FID in Q2, CY2021 Interventions • FEED completed and detailed engineering and design work progressing on schedule • Contract negotiations ongoing, rig mobilization currently
Slide 14: Highlights – 1H FY21
Highlights – 1H FY21 Safety Metrics Production 816 kbbls Unit Production Costs Two minor injuries Sales 503 kbbls US$22.1/bbl One LTI Revenue Cash Net Loss after Tax A$32.9 million A$133 million A$2.4 million 8
Slide 15: 1H FY21 – Key Financial and Operational Measures
1H FY21 – Key Financial and Operational Measures Measure 1H FY21 Production (kbbls) 816 Sales Volume (kbbls) 503 Realised Oil Price (US$/bbl) 47.31 Oil Sales Revenue (A$ million) 32.92 Unit Production Costs (US$/bbl) 22.10 Gross Profit from oil produced and sold from 7/11/2020 to 31/12/2020 (A$ mill
Slide 16: FY21 Initial Guidance
FY21 Initial Guidance FY21 Initial Guidance (as at 25 February 2021)1 Low High Production (MMbbls) 3.0 3.4 • Baúna production is currently in line with expectation Operating Expenditure • Unit Production Costs are largely fixed in Unit Production Costs (US$/bbl)2 23 27 nature and currently in line w
Slide 17: Baúna Asset Overview
Baúna Asset Overview Strong operational track record & growth potential • BM-S-40 Licence includes Baúna, Piracaba & Patola proven oil pools • Reservoirs: high productivity, strong seismic response, 33-38 API crude oil with no impurities • Production wells: 6 oil producers, 3 water injectors; 1 gas
Slide 18: Baúna Asset Overview (cont.)
Baúna Asset Overview (cont.) Baúna Reserves & Production Growth • High potential wells targeted in workover campaign • 2 downhole pump replacements, 1x gas lift and 1x oil zone re-opening • Workover campaign targeting 5 kbopd to 10 kbopd increase Project Reserves 31/12/2020* 1P (MMbbl) 2P (MMbbl) 3P
Slide 19: Patola Project Summary
Patola Project Summary Bringing discovered undeveloped oil in the Patola reservoir to production PAT-1 PAT-2 • Patola oil discovery well (SPS-91) drilled within BM-S-40 production ring-fence confirming 38 API oil and similarly high quality reservoir to producing Baúna & Piracaba fields • Development
Slide 20: Baúna Intervention and Patola Development
Baúna Intervention and Patola Development Forecast FY Average Production – FY2021 to FY2023 Notes: 1 Karoon predicted production rates based on natural decline and operational uptime assumptions for the period 6 November 2020 to 30 June 2021. 2 Estimated potential future average production rates bas
Slide 21: Brazil: Santos Basin, Neon and Goiá Discoveries
Brazil: Santos Basin, Neon and Goiá Discoveries Production growth potential through light oil discoveries 50km from Baúna 50km to Baúna • Neon & Goiá light oil discoveries flowed at strong test rates • Moderate water depth, shallow reservoirs and high quality seismic dataset - analogous to Baúna ass
Slide 22: Proposed Timeline to Full Production
Proposed Timeline to Full Production Provisional Program • Operational tendering for interventions and Patola development nearing completion • Well intervention campaign planned to commence in 2H CY2022 • Patola development proposed to utilise same rig and commence on completion of Baúna interventio
Slide 23: COVID-19 Safety
COVID-19 Safety Protecting staff health and wellbeing Protecting operations staff • Karoon’s first priority is health and safety • Strict hotel quarantine schedule enforced for all crew embarking the • COVIDsafe plans are in place in all Baúna FPSO jurisdictions • 24 x 7 security provided at the hot
Slide 24: Karoon Energy
Ki Karoon Energy