Karoon Energy Ltd · ASX:KAR
Karoon Energy — Investor Presentation (September 2022)
30 slides from Karoon Energy's investor presentation, Sep 21, 2022
Slide 1: Brazil Field Trip Investor Presentation
21 September 2022 Company Announcements Office ASX Limited Dear Sir / Madam Brazil Field Trip Investor Presentation Enclosed is a presentation to be made by Karoon Energy’s Chief Executive Officer and Managing Director and other Karoon Energy executives later today. As set out in the presentation, i
Slide 2: Karoon Energy Brazil Field Trip
Karoon Energy Brazil Field Trip September 2022
Slide 3: Disclaimer
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 pr
Slide 4: Welcome
Julian Fowles CEO and Managing Director Welcome
Slide 5: Karoon's Strategic Objectives
KAROON'S STRATEGIC OBJECTIVES Deliver base production and sanctioned projects to create foundation for further growth Execute Baúna base business, with focus on safety, reliability, strict capital controls Deliver sanctioned intervention and Patola development projects Re-evaluate and seek to de-ris
Slide 6: Introduction
Antonio Guimaraes EVP and President Karoon Brazil Introduction
Slide 7: Karoon Energy Brazil – Our Human Capital
KAROON ENERGY Julian Fowles Brazil – Our Human Capital Chief Executive Officer and Managing Director Interim CoSecs Antonio Guimarães Stephen Power Ray Church EVP & General EVP EVP EVP Counsel/Company Secretary & President Karoon Brazil Commercial & Legal & Chief Financial Officer OPERATIONS NEW BUS
Slide 8: Karoon Interests in the Santos Basin, Brazil
KAROON INTERESTS IN THE SANTOS BASIN, BRAZIL Production and Development Neon Blocks Exploration SANTOS BASIN Blocks Goia Fields & Baúna, Piracaba Discoveries and Patola Prospects BRAZIL Rio de Janeiro Clorita Itajai 50km
Slide 9: Prospectivity and Favourable Fiscal Terms
PROSPECTIVITY AND FAVOURABLE FISCAL TERMS Brazil: Attractive location to invest Oil and gas industry well established with stable regulator Long tradition of respecting contracts already in place Favourable tax royalty contract terms for post salt licenses Seeking to attract more investment in upstr
Slide 10: Operations Overview
Rudimar Lorenzatto Senior Operations VP Operations Overview
Slide 11: Baúna Operations Overview
BAÚNA OPERATIONS OVERVIEW Safe and reliable operations First Oil registered on 16 February 2013 As at 19 September, production ~12,300 bopd of high quality, 34 °API light oil (excludes SPS-92) FPSO Process and Storage Capacities o Oil Production: 76,000 bbl/d o Liquids (oil & water) Production: 80,0
Slide 12: Baúna Asset Operating Performance
BAÚNA ASSET OPERATING PERFORMANCE High facilities uptime and active well management F P SO F A C I L I T IES U P T I M E I N F Y 2 0 2 2 1 FOCUS ON PROCESS SAFETY, FACILITY INTEGRITY AND 100% 99% PREVENTIVE MAINTENANCE 95% Average operational uptime over 99% in FY2022, excluding scheduled 90% shutdo
Slide 13: Baúna Maintenance Examples
BAÚNA MAINTENANCE EXAMPLES FPSO Cidade de Itajaí Preservation and Painting Plan Water Injection System before (left) and after (right) treatment – p12
Slide 14: Baúna Well Workovers
BAÚNA WELL WORKOVERS 1-SPS-56 WELL BEFORE 1-SPS-56 WELL AFTER Objective of Karoon’s intervention campaign is to increase oil production by improving INTERVENTION INTERVENTION completion equipment (ESP, gas lift system and subsea Christmas tree) Artificial lift study was implemented to determine the
Slide 15: Maersk Developer Rig Capabilities
MAERSK DEVELOPER RIG CAPABILITIES Technology and automation enabling safe operations ✓ Dual derrick – simultaneous operations, e.g drill and run casing ✓ Large cargo and storage capacities enabling efficient Drilling, Completion and Workovers ✓ Good safety record Clip riser connected without manual
Slide 16: Baúna Intervention Objectives
BAÚNA INTERVENTION OBJECTIVES Targeting 5 – 10,000 bopd increase over pre-intervention rates BM-S-40 First well entered (replace failed ESP in PRA-2) late May 2022. Completed late June 2022. Production stable at over 4,000 bopd vs approximately 1,900 bopd previously PRA-1 Second intervention to inst
Slide 17: Indicative Production and Cost Profile
INDICATIVE PRODUCTION AND COST PROFILE1 Based on development projects underway INDICATIVE PRODUCTION PROFILE (MMBBL) TARGETING MATERIAL PRODUCTION INCREASE/UNIT 7–9 COST REDUCTIONS Production from BM-S-40 base case assumes 92 – 97% facilities uptime 4.64 (excluding scheduled outages), ongoing optimi
Slide 18: Patola Development
Martin Austgulen Reservoir and New Ventures Manager Patola Development
Slide 19: Current Baúna/Patola/Neon Schedule
CURRENT BAÚNA/PATOLA/NEON SCHEDULE1, 2 1. Assumes no further material weather or drilling delays 2. Subject to decisio n on BAN -1 drilling timing 3. Subject to receipt of requir ed approv al s – p18
Slide 20: Patola Development
PATOLA DEVELOPMENT Expected to add ~10,000 bopd to production in early CY2023 Patola oil discovery well (SPS-91) confirmed same high quality geological reservoir interval as Baúna, with 38 API oil Analogous seismic response of Patola area has de-risked hydrocarbon pool extent and allowed for optimis
Slide 21: Schematic Patola Well Drilling
SCHEMATIC PATOLA WELL DRILLING Planned 2,400m total depth, ~270m water depth Each well targeted to take ~ 60 days to drill and complete Materials inspected and available Reputable contractors High efficiency Rig Patola equipment fabrication progressing as planned. Delivery currently underway Pending
Slide 22: Neon and New Ventures
Martin Austgulen Reservoir and New Ventures Manager Neon and New Ventures
Slide 23: Neon Drilling
NEON DRILLING Control well drilling aimed at de-risking structure NEON EVALUATION Neon, Goiá light oil discoveries 50-60km NE of Baúna, 300m water depth Revised preliminary development concepts confirmed sufficient commercial potential to justify control well drilling campaign Control well(s) 2 desi
Slide 24: Potential Neon Development Concepts
POTENTIAL NEON DEVELOPMENT CONCEPTS Subject to Neon control well(s), several alternative development concepts being explored, including a standalone development and a tieback to Baúna Preliminary development options envisage Neon oil being STANDALONE DEVELOPMENT TIEBACK TO BAÚNA produced through sub
Slide 25: Assessing Inorganic Growth Options
ASSESSING INORGANIC GROWTH OPTIONS Disciplined process to identify and pursue value-accretive growth opportunities Continuing to actively screen inorganic growth opportunities Rigorous screening process used, with key criteria including: Value accretive, with acceptable risk profile Fundable Produci
Slide 26: Sustainability
Julian Fowles CEO and Managing Director Sustainability
Slide 27: Climate Strategy
CLIMATE STRATEGY Carbon neutral in FY2021, targeting Net Zero by 2035 Climate targets: Carbon neutral 1 on Baúna operations from FY2021 - achieved for FY2021 and planned to be achieved for FY2022, with Net Zero by 2035 2 Scope 1 and 2 emissions in FY2022 were 82,870 tCO 2e (82,805 tCO2e Scope1, 65 t
Slide 28: GHG Mitigation
GHG MITIGATION Priority to reduce emissions where possible. Emissions reduction projects implemented in FY2022: Optimisation of support vessel movements avoided ~1,000 tCO 2e Scope 1 emissions Mooring buoy project, allowing vessels to anchor safely while at FPSO, reduced emissions by ~1,850 tCO 2e A
Slide 29: Social Projects
SOCIAL PROJECTS Aiming to generate lasting benefits for communities • In addition to regulatory social projects, committed to four voluntary social projects in Brazil, focused on Education, Sustainable Economic Development and Biodiversity: • Pro-CREP – comprises container production warehouse and w
Slide 30: Appendix: Definitions
Appendix: Definitions 2H Financial period from 1 January to 30 June ANP Agência Nacional do Petróleo, Gás Natural e Biocombustíveis GHG Greenhouse gas API American Petroleum Institute’s Inverted scale for denoting the “lightness” or k Thousand “heaviness” of crude oils and other liquid hydrocarbons
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