Karoon Energy Ltd · ASX:KAR
Karoon Energy — Shareholder Meeting (November 2020)
33 slides from Karoon Energy's shareholder meeting presentation, Nov 27, 2020
Slide 1: 2020 Annual General Meeting – Address by Chairman and Presentation
27 November 2020 Company Announcements Office ASX Limited Dear Sir / Madam Karoon Energy Ltd 2020 Annual General Meeting – Address by Chairman and Presentation In accordance with ASX Listing Rule 3.13.3, enclosed are the Chairman’s address and a presentation to be delivered at Karoon Energy Ltd’s 20
Slide 2: Chairman's address
ASX RELEASE Issued 27 November 2020 Chairman’s address Good morning Ladies and Gentlemen, The 2019-20 year has been a challenging year for Karoon Energy. The financial year started uneventfully for energy markets but ended with considerable uncertainty when the COVID-19 pandemic caused major disrupt
Slide 3: The Baúna acquisition
1. The Baúna acquisition So, in July 2020, the Company announced the successful renegotiation of the Baúna Sale and Purchase Agreement for the same headline price, but on more favourable terms to enable the purchase to be fully funded without debt financing. The terms included a $380 million US doll
Slide 4: Transition from explorer to exploration and production company
As Karoon transitions from an oil and gas explorer to an exploration and production company, we have been reshaping and building a highly skilled, efficient, and agile organisation. Corporate cost reductions have continued through staff redundancies, office closures and consolidations, particularly
Slide 5: Outlook
only recently lifted after Closing of the Bauna transaction. No long-term incentive was awarded during the year, while only a minimal STI outcome was awarded to Key Management Personnel. Base Board fees remained unchanged and have not been increased since 2013. The Board committee structure has been
Slide 6: Conclusion
energy assets in its portfolio with an overall focus and rigour on their potential financial returns for shareholders. 6. Conclusion In conclusion ladies & gentlemen, I would like to thank all of you, our shareholders, for your very patient support. It has been a challenging but rewarding time since
Slide 7: Important Note
Important Note Should investors have any questions or queries regarding the company, please contact James Wootton on 03 9616 7500 or jwootton@karoonenergy.com.au All holding enquiries should be directed to our share registrar, Computershare on 1300 850 505. About Karoon Energy Ltd Karoon Energy Ltd.
Slide 8: Forward-looking statements disclaimer
Karoon disclaims any intent or obligation to update publicly any forward‐looking statements, whether as a result of new information, future events or results or otherwise. P a g e |7
Slide 9: 2020 Annual General Meeting
2020 Annual General Meeting 27th November 2020
Slide 10: 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 11: Introduction
Introduction Clark Davey Peter Botten Jose Coutinho Barbosa 3
Slide 12: Meeting Agenda
Meeting Agenda 1. Chairman’s Address 2. Managing Director’s Address 3. Technical Review 4. Formal Business • Discussion of Resolutions • Financial Statements and Reports 5. Meeting Close 4
Slide 13: Chairman's Address
1 Chairman’s Address Bruce Phillips
Slide 14: Managing Director's Address
2 Managing Director’s Address Robert Hosking
Slide 15: Karoon Energy - Overview
Karoon Energy - Overview Karoon has production with upside plus appraisal and exploration in the Santos Basin, Brazil • The acquisition of Baúna has made Karoon the 5th largest oil producer on the ASX with current production of ~15.2 kbopd1 • Market cap A$578 MM, 553.6 MM fully paid ordinary shares
Slide 16: Three pillar corporate strategy
Three pillar corporate strategy Delivering with completion of Baúna acquisition Baúna forms a platform for future growth 1 Creating value through operating efficiencies, and effectively developing existing discoveries within the current portfolio 2 In the medium to long term, a focused approach to p
Slide 17: Baúna and existing Santos Basin assets
Baúna and existing Santos Basin assets Creating a hub development • Karoon now holds production at Baúna, with a nearby production tie-in opportunity at Patola and the nearby Neon and Goiá discoveries • Baúna brings cash flow with strong production today, with plans to significantly increase product
Slide 18: Baúna Production and Reserves
Baúna Production and Reserves Established oil production and mature plans to materialise growth potential • Workover campaign targeting initial peak rate of • Strong production performance since January 20 kbopd, and >50% increase on natural decline 1st 2019 (being effective date of SPA) scenario ra
Slide 19: Consideration Terms under Baúna SPA
Consideration Terms under Baúna SPA Consensus for a lower for longer oil price • US$40 MM (approx.) deferred consideration payable Brent Consensus Forecast1 18 months after close 80 70 • Up to US$285MM contingent consideration linked to 60 annual average Brent prices between US$50 and 50 US$70 dolla
Slide 20: Pathway to shareholder returns
Pathway to shareholder returns • Maintaining the proposed timeline and cost controls for the Baúna intervention program and Patola development is Karoon’s top priority Contract timing • Karoon owns 100% of its Santos Basin acreage and may seek to de-risk through a farm down or partial sale of one or
Slide 21: Proposed Timeline to Full Production
Proposed Timeline to Full Production Provisional Program to Full Production • Operational tendering for interventions and Patola development nearing completion • Well intervention campaign planned to commence in Q4 2021 • Patola development proposed to utilise same rig and commence on completion of
Slide 22: Sustainability
Sustainability Caring for our People, Environment and the Community • Zero Environmental • Supported through Covid-19 incidents during Peru • Increased focus on wellbeing drilling • Diversity • Zero Lost Time incidents • Training ongoing during the financial year Health, Safety and People Environmen
Slide 23: Technical Review
3 Technical Review John Steel - Senior Geologist / Team Lead Asset Development
Slide 24: Baúna Asset Overview
Baúna Asset Overview Strong operational track record Baúna Development • Existing production system includes 6 oil production wells, 3 water injection wells and 1 gas injection well tied back to FPSO Cidade de Itajaí • Baúna and Piracaba reservoirs have produced approx. 130 MMbbls to date with histo
Slide 25: Baúna Asset Overview
Baúna Asset Overview Excellent reservoir characteristics & growth potential Baúna Development • Licence includes 3 proven oil pools named Baúna, Piracaba & Patola. Patola is yet to be developed with FID planned for Q2 2021 • Reservoirs are high productivity, well delineated by strong seismic respons
Slide 26: Significant reserves and contingent resource base
Significant reserves and contingent resource base Baúna Reserves1 AGR Reserves Estimates Project Reserves 30/06/2020* 1P (MMbbl) 2P (MMbbl) 3P (MMbbl) Baúna current wells incl. intervention program 34.7 39.2 53.2 *These reserves are a result of stochastic summation of individual well reserves; and n
Slide 27: Significant reserves and contingent resource base
Significant reserves and contingent resource base Baúna contingent resource1 AGR Contingent Resource Estimates Project Contingent Resources 30/06/2020 1C (MMbbl) 2C (MMbbl) 3C (MMbbl) Patola Development 9.6 13.2 18.6 Baúna benefit from Patola 1.2 1.5 1.6 SPS-57 1.9 4.2 8.3 • Contingent Resources upd
Slide 28: Patola Project Summary
Patola Project Summary Bringing discovered undeveloped oil in the Patola reservoir to production • Patola oil discovery well (SPS-91) drilled within BM-S-40 production ring-fence confirming 38 degree API oil and similarly high quality reservoir characteristics to producing Baúna & Piracaba fields •
Slide 29: Brazil: Santos Basin, Neon and Goiá Fields
Brazil: Santos Basin, Neon and Goiá Fields Production growth potential through light oil discoveries 50km from Baúna • Light oil discoveries at Neon and Goiá both flowed at strong rates 50km to Baúna on test • Moderate water depth, shallow reservoir depths and high quality seismic dataset - analogou
Slide 30: Production Growth Projects
Production Growth Projects Portfolio of discovered resources in Santos Basin focus area Producing Pre-Development Infill Potential Pre-Development Goiá upside 160 Karoon Net Oil Resources (MMbbl) 140 120 100 80 60 40 20 0 1 2 1 1 2 2P - Reserves 2C - Patola 2C - SPS-57 2C - Neon 2C - Goia Bauna • Ba
Slide 31: Peruvian Assets
Peruvian Assets Z-38 and Area 73 • Drilling of the Marina-1X exploration well was completed safely and on time with zero recorded environmental incidents • No oil shows were encountered and reservoir targets were found to be poorly developed in this location • Technical studies to integrate the Mari
Slide 32: Australian Assets
Australian Assets WA-482-P Map of WA-482-P • Since the drilling of the Levitt-1 exploration well Karoon have been working with permit Operator Santos to progress the prospectivity assessment • All features of interest were retained in the renewal phase of the permit term and are currently the subjec
Slide 33: Karoon Energy
Ki Karoon Energy