Karoon Energy Ltd · ASX:KAR
Karoon Energy — Merger or Acquisition (July 2020)
17 slides from Karoon Energy's merger presentation, Jul 27, 2020
Slide 1: Baúna Acquisition – Adjusted Terms
Baúna Acquisition – Adjusted Terms 27 July 2020 Karoon signs binding agreement to amend Sale and Purchase Agreement to acquire the Baúna Oil Field, offshore Santos Basin, Brazil
Slide 2: Transformational Acquisition
Transformational Acquisition Karoon has signed a binding amendment to the sale and purchase agreement to acquire a 100% operated interest in the Baúna oil field in the Santos Basin, Brazil US$380 MM firm purchase price offset by operating cash flows from the effective date, 1 January 2019 Karoon to
Slide 3: Transaction Summary
Transaction Summary • Karoon to acquire 100% operated interest in the Baúna field in the BM-S-40 concession from Petrobras (comprising the Baúna and Piracaba oil reservoirs and the Patola discovery) Transaction • Effective date of transaction is 1 January 2019 • Firm Purchase Price of US$380 MM expe
Slide 4: 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 5: Simplified Funding Structure
Simplified Funding Structure Revised consideration structure enables Karoon to fund the acquisition of Baúna with existing cash and pre-completion asset cash flows. Karoon retains flexibility to fund future developments via a farm-out on a portfolio basis with Neon and Goia, sell-down or debt fundin
Slide 6: Baúna asset overview
Baúna asset overview Baúna has excellent reservoir characteristics and identified production growth opportunities 50-60km to Neon/Goia • Concession BM-S-40 is in the southern Santos Basin, BM-S-40 Concession 50-60km from Karoon’s Neon and Goiá discoveries and 50km from Karoon’s Clorita exploration a
Slide 7: Baúna Geological Summary
Baúna Geological Summary Excellent Sub-surface Characteristics Baúna Well Log Piracaba Well Log Vcl Poro Vcl Poro Depth Structure Baúna Seismic Cross Section Piracaba Reservoir Depth Mapping High 10m Low Piracaba Baúna Patola • Combined structural/stratigraphic traps at a depths circa 2000m subsea S
Slide 8: Baúna production and reserves
Baúna production and reserves Established, reliable oil production and identified potential growth through ongoing investment in the southern Santos Basin Production growth target (Mbopd) Baúna Reserves and Contingent Resources (MMbbls)3 28 Existing producing wells MMbbls 46.8 Production Growth Baún
Slide 9: Baúna work-over campaign
Baúna work-over campaign Mature plans to execute production enhancement opportunities • Significant scope to improve field production through intervention work • Workover campaign targeted to improve production performance in 4 of 6 producing wells • Campaign consisting of replacing 2 failed down-ho
Slide 10: Patola project summary
Patola project summary Bringing discovered undeveloped oil in the Patola reservoir to production Baúna Piracaba Patola Schematic Cross Section Patola project summary • Patola oil discovery well (SPS-91) drilled within BM-S-40 production ring-fence confirming 28 degree API oil and similarly high qual
Slide 11: Transition to Operatorship
Transition to Operatorship Karoon well placed with experienced production personnel ready for operation Karoon’s Production Capability FPSO Operations • Karoon has more than 10 years operating experience in Brazil • Class A Operator status in Brazil with experienced production • Key commercial terms
Slide 12: Baúna COVID-19 Response
Baúna COVID-19 Response TeekayOcyan, as operator of the Cidade do Itajai (the FPSO), has implemented systems for managing COVID-19 to ensure the FPSO continues operating throughout the pandemic These systems are compliant with ANVISA (Brazilian Health Regulations) and contemplate actions to prev
Slide 13: Transformational Acquisition
Transformational Acquisition Karoon’s Managing Director, Mr. Robert Hosking said: “The company has been working diligently through a difficult time to progress regulators and counterparties regardless of global turmoil and we are very happy to have agreed a path forward that provides Karoon sharehol
Slide 14: Glossary
Glossary 3D seismic A set of numerous closely‐spaced seismic lines that Contingent Resources Those quantities of hydrocarbons estimated, as of a provide a high spatially sampled measure of given date, to be potentially recoverable from subsurface reflectivity known accumulations by application of de
Slide 15: Glossary
Glossary MM million Q3 quarter 3 Reserves Those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must satisfy four criteria: they must be discovered, recoverab
Slide 16: 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 17: Karoon Energy
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