Karoon Energy Ltd · ASX:KAR
Karoon Energy — Investor Presentation (June 2021)
14 slides from Karoon Energy's investor presentation, Jun 3, 2021
Slide 1: Investor Presentation – Patola FID
3 June 2021 Company Announcements Office ASX Limited Dear Sir / Madam Investor Presentation – Patola FID Enclosed is an investor presentation entitled “Patola FID – Karoon Energy”. The investor presentation has been authorised for release by the Board of Directors. Yours faithfully Nick Kennedy Comp
Slide 2: Patola FID
Patola FID Karoon Energy 3 June 2021
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Karoon Energy Ltd (Karoon). 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 pres
Slide 4: Patola Final Investment Decision – Investment Highlights
Patola Final Investment Decision Investment Highlights • Low risk, near-field, two well development, consistent with corporate strategy • Targeting first Patola production in early CY 2023, with expected peak rates Pathway to >10,000 bopd. Takes total potential BM-S-40 production (including Baúna in
Slide 5: FID next step to becoming major oil producer
Patola FID next step to becoming major oil producer Delivery of key milestones • Seamless transition to operatorship: • Safe, reliable operations with Baúna base production performing in line with expectations • Strict COVID protocols in place, no impact on operations to date • Seen as credible new
Slide 6: Patola Project
Patola Project Discovered oil pool 5km from Baúna • Patola discovered in 2011 by exploration well 4-SPS-91, located adjacent to producing Baúna and Piracaba accumulations • Same play of Oligocene turbidite sandstone reservoirs as Baúna and Piracaba, with similar petrophysical properties • Water dept
Slide 7: FID expected to result in 2P Reserves being ascribed to Patola
FID expected to result in 2P Reserves being ascribed to Patola Patola development to access 14.7 MMbbl incremental 2C Contingent Resource across Patola and Baúna Contingent Resources 31/12/20201 1C (MMbbl) 2C (MMbbl) 3C (MMbbl) Patola Development 9.6 13.2 18.6 Baúna benefit from Patola 1.2 1.5 1.6 •
Slide 8: Key Components of Patola Project
Key Components of Patola Project Major contracts signed • Option exercised to extend Maersk Developer rig contract to drill two Patola production wells commencing late CY2022 • iEPCI™ contract signed with TechnipFMC: • Integrated package from design and fabrication through to installation of sub-sur
Slide 9: Capital Costs and Funding
Patola Capital Costs and Funding Karoon’s first debt facility secured from syndicate of global lenders • Total Patola development budget US$175 – 195 million • ~US$17 million already invested in long lead items: • Transformational first production expected within two years of development decision •
Slide 10: Hedging arrangements
Hedging arrangements Hedging to partially protect downside oil price risk • Karoon to hedge portion of oil sales over next two years: • Prudent management of downside risk during investment phase • Will hedge 30 – 40% of production over first two years of loan facility, with balance of production re
Slide 11: Health, Safety, Security and Environment
Health, Safety, Security and Environment Commitment to safe, reliable execution • Early engagement with contractors to develop plans and procedures to mitigate risks and impacts on people, environment, assets and company reputation during project execution • Actively managing COVID, to ensure health
Slide 12: Proposed Timeline to Full Production
Proposed Timeline to Full Production Program • Baúna intervention program to commence mid-2022, two Patola development wells to be drilled after the interventions • Option remains to drill potential Neon control well 2020 2021 2022 2023 Activity Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Tendering and FEED Long
Slide 13: Summary – Transition From Explorer to Producer Complete
Summary – Transition From Explorer to Producer Complete A new era has begun… • Stable, low cost production from Baúna Pure oil • 3Q 2020/21 production rate of 12,641 bopd (11.5 days maintenance outage) producer • Oil price realisations linked to Brent, crude marketed by Shell • Baúna interventions e
Slide 14: Karoon Energy
Ki Karoon Energy