Karoon Energy Ltd · ASX:KAR
Karoon Energy — Shareholder Meeting (November 2022)
33 slides from Karoon Energy's shareholder meeting presentation, Nov 24, 2022
Slide 1: 2022 Annual General Meeting – Address by Chairman and Presentation by CEO
24 November 2022 ASX: KAR Company Announcements Office ASX Limited Dear Sir / Madam Karoon Energy Ltd 2022 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 K
Slide 2: Chairman's Address: Macro Environment
ASX RELEASE 24 November 2022 | ASX: KAR 2022 Annual General Meeting Chairman’s Address The 2022 financial year (FY22) represented Karoon’s first full year as an oil producer and operator. Over the past 18 months, Karoon has built a reputation as a safe, reliable and responsible operator, and has mad
Slide 3: FY2022 Results
regulator, a long tradition of respecting contracts, and a genuine desire to encourage responsible investment, as evidenced by the recent reduction in our royalty rates for incremental production at Baúna. We look forward to working closely with the new Government to achieve mutually beneficial outc
Slide 4: Creating a sustainable business
As well as the ongoing evaluation of Neon, we are continuing to explore potential acquisition and farm-in opportunities. Most of the assets being reviewed are located in Brazil, but we are also actively screening other oil-dominated assets, primarily in the Americas. We are being highly disciplined
Slide 5: Top three priorities for the future allocation of capital
Our top three priorities for the future allocation of capital are unchanged from last year: • Firstly, ensuring sufficient capital is invested in the Baúna operations to ensure safe and reliable production; • Secondly, funding debt repayments and satisfying the covenants on our debt facilities, as w
Slide 6: Remuneration outcomes and conclusion
In addition, 100% of the Long-Term Incentive (LTI) also vested, based on an absolute three-year total shareholder return of 32% pa, and Karoon’s relative shareholder return position in the 100th percentile. Given the seamless transition from an exploration company to a material oil producer in FY21
Slide 7: Strategy Delivery: MD and CEO's address
MD and CEO’s address (Please refer to presentation) Strategy Delivery Thank you, Chairman, and good morning to everyone joining us here in the auditorium and to everyone on the call. I’d like to talk this morning about the journey Karoon has been on in 2022, providing a little more detail around the
Slide 8: Baúna Operating Performance
Baúna Operating Performance We have now been an oil producer for more than two years. We delivered on our objective of safe and reliable operation of the Baúna Field in FY2022, with no significant safety incidents and production reliability at 99%. Safety will always remain our top priority, but I w
Slide 9: Patola completion operations and first oil
reservoir quality than predicted. The Noble Developer drilling rig has now started completion operations on the wells. Once the wells are completed, we shall mobilise the Pipe Laying Vessel to install flowlines and umbilicals and tie the wells back to the FPSO. The new wells will then be commissione
Slide 10: Community contributions and carbon emission reductions
but it is also essential that we strive to make meaningful contributions to, and improve the lives of, the people in the communities where we operate. Through the implementation of a number of carbon emission reduction projects within our operations and the purchase of high quality verified emission
Slide 11: Liquidity, hedging and shareholder returns
our strong cash position and safe and reliable production record, our lenders have agreed to defer our next tranche of hedges. We will continue to engage with our lenders to ensure we maintain exposure to current oil prices and seek to defer further hedges, if appropriate. The Chairman has already o
Slide 12: Thank you for your attention
Thank you for your attention and I’ll now hand you back to our Chairman. This announcement has been authorised for release by the Board of Karoon Energy Ltd. Karoon Energy Ltd | PH: 613 9616 7500 | ABN 53 107 001 338 | www.karoonenergy.com Level 3, 6 Riverside Quay, Southbank VIC 3006 Australia
Slide 13: For further information please contact
FOR FURTHER INFORMATION ON THIS RELEASE, PLEASE CONTACT INVESTORS MEDIA - AUSTRALIA MEDIA - BRAZIL SVP Communications P&L Corporate InPress Porter and Investor Relations Communications Novelli Ann Diamant Ian Pemberton Andrea Blum M: +61 407 483 128 M: + 61 402 256 576 M: + 55 21 98105-9338 E: Ann.D
Slide 14: Karoon Annual General Meeting November 2022
Karoon Annual General Meeting 24 November 2022 sb fi KAROON ENERGY
Slide 15: Strategy Delivery
KAROON ENERGY » Strategy Delivery Julian Fowles, MD and CEO -p2
Slide 16: Disclaimer
Disclaimer eaeey This presentation has been prepared by Karoon Energy Ltd, The information contained in this presentationis 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 presenta
Slide 17: Karoon interests in Santos Basin, Brazil
Karoon interests in Santos Basin, Brazil bie BASIN ; ( a cm : “ff - , wy SF
Slide 18: Creating a strong foundation for growth
Creating a strong foundation for growth Performance above expectations from Bauna base business, with focus on safety, reliability and strict capital controls On track to more than double production through delivery of Bata intervention and Patola development projects Pursuing organic and inorganic
Slide 19: Brazil: Attractive location to invest
Brazil: Attractive location to invest be AER Prospectivity and favourable fiscal terms > Brazil is world’s 9th largest oil producer, set to become 5th by 2030 through continued development of highly productive upstream assets > Oil and gas industry well established with stable regulator > Long tradi
Slide 20: Baúna Operating Performance
Batina Operating Performance High facilities uptime and active well management > Core focus is on maintaining safe and reliable operations: > TRIR of 0.77 per 200,000 hours worked in FY2022 > High operational uptime in FY2022 of 99%' maintained through 1023, despite intervention activity ongoing > R
Slide 21: Baúna and Patola field layout
BM-S-40 PRA-1 SPS-57 SPS-93 SPS-92 Piracaba PRA-2 PRA-3 Baúna PAT-1 PAT-2 SPS-56 SPS-91 BAN-1 SPS-87D Patola SPS-88 SPS-89
Slide 22: Utilising Maersk Developer rig
Utilising Maersk Developer rig Wet Christmas Tree pm Wet Christmas Tree <5 <- Legend: Mo cas I Equipment replaced Tubing Hanger Wet Christmas Tree Electrical Submersible Pump (ESP) KAROON -p9
Slide 23: Patola Development
Patola Development KAROON ENERGY Targeting >10,000 bopd, increasing total production to >30,000 bopd > % on.s.00 > Patola development drilling complete Preliminary analysis of PAT-1 results indicates top reservoir depth and reservoir thickness within expected range, reservoir quality better than ant
Slide 24: FY2023 Indicative Production and Cost Profile
FY2023 Indicative Production and Cost Profile! KAROON ENERGY Material production growth and cost reductions expected INDICATIVE PRODUCTION PROFILE (MMBBL) 7.5-9 4.6 = oS FY20214 FY2022A FY2023F INDICATIVE UNIT OPERATING COST (US$/BBL) 25 25 L L - FY20214 FY20224 FY2023F > Interventions and Patola ta
Slide 25: Potential Neon Development
Potential Neon Development be Ee Control well drilling aimed at de-risking development Interproted Fluid Zones =e > Neon, Goia light oil discoveries 50-60km NE of Batina — pier nee oa > One, potentially two, control wells, Neon-1 and Neon-2, to be drilled after Patola development drilling? Potential
Slide 26: Assessing Inorganic Growth Options
ENERGY Assessing Inorganic Growth Options bie Disciplined process to identify value-accretive growth opportunities >» Continuing to actively screen inorganic growth opportunities >» Focus on oil assets located in Brazil and the Americas > Rigorous and disciplined screening process used, with key cri
Slide 27: Carbon neutral in FY2021, targeting Net Zero by 2035
KAROON & C Carbon neutral’ in FY2021, targeting Net Zero’ by 2035 Climate targets: Carbon neutral! on Batina operations from FY2021 - achieved for FY2021 and planned to be achieved for FY2022, with Net Zero by 20352 Scope 1 and 2 emissions in FY2022 of 82,870 tCO,e (82,805 tCO,e Scopel, 65 tCO,e Sco
Slide 28: Implementing our Carbon Management Action Plan
A /) VW karoon 2 Implementing our Carbon Management Action Plan Priority to reduce emissions where possible. Emissions reduction projects implemented: Optimisation of support vessel movements avoided ~1,000 tCO,e Scope 1 emissions Mooring buoy project, allowing vessels to anchor safely while at FPSO
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: Karoon's five pillar sustainability plan
Karoon’s five pillar sustainability plan bie Other achievements in FY2022 > First standalone Sustainability Report released in August 2022 > First Modern Slavery Statement submitted in December 2021 > Major investment in cyber security upgrades > Scope 3 emissions reported for first time > 46% femal
Slide 31: Cash and Available Liquidity
Cash and Available Liquidity bie ENERGY FACILITY TENURE (USS MILLION) > At 30 September 2022, total liquidity of US$361.8 million, 250 210 210 210 210 comprising US$181.8 million cash/cash equivalents and 200 USS$180 million in undrawn available debt 50 50 50 50 1s8 ee 38 wos > Debt facility compris
Slide 32: Summary: Well Positioned to Deliver Shareholder Value
Summary: Well Positioned to Deliver Shareholder Value bie Strong base business with organic and inorganic growth potential > One of the few ASX listed companies with pure oil exposure > Three-well Batina intervention program has added ~11,000 bopd to production, stabilised at ~24,000 bopd prior to n
Slide 33: Karoon Energy
KAROON ENERGY