Due to operational issues set out below, for the year ending 31 December 2024 (CY24), Karoon expects:

• Brazil production for CY24 to be in the range of 7.2 to 9.0 million barrels (MMbbl) compared tothe previous range of 8.0 to 10.0 MMbbl.
• CY24 total production, including the Who Dat assets, to be in a range of 11.2 to 13.5 millionbarrels of oil equivalent (MMboe), compared to the previous range of 12 to 14.5 MMboe, withWho Dat guidance unchanged.
• Unit production costs for the 12 months to be in the range of US$10.5 to US$15.0 per boe,compared to the previous range of US$9.0 to US$14.0 per boe. This increase is driven by thereduced production and the intervention costs, partly offset by opex phasing.

All other CY24 guidance remains unchanged and is subject to the same assumptions as provided on 27 November 2023.

TY23 guidance remains unchanged.

CY24 Brazilian production update

During November 2023, Baúna Project production was impacted by operational issues relating to equipment in the gaslift dehydration unit on the FPSO. This led to the formation of hydrates in two wells that has impeded production rates. While one of the wells was returned to production within a week, the second well has been unable to be produced since late November 2023.

Karoon has been working with the operator of the FPSO to remediate these issues, resulting in the replacement of equipment in the gaslift dehydration unit and gas stimulation of the impacted well, SPS-88, which was completed on 20 January 2024. The topside issues have been resolved, and the hydrates are believed to have been removed by circulating fluids. However, the SPS-88 well has not been able to be returned to production due to what now appears to be a mechanical blockage in the well’s Gas Lift Valve, part of the SPS-88 well completion.

Consequently, based on the current information, Karoon has determined that a well intervention is likely to be required to return SPS-88 to production. Karoon’s current planning basis is that this work will be undertaken by a Lightweight Well Intervention Vessel (LWIV) and will take approximately 20 days to complete at a cost of US$5-10 million (100% funded by Karoon). The timing of the intervention will be subject to the engagement of a LWIV and ancillary services and equipment, in addition to the receipt of all necessary regulatory approvals. The revised CY24 production forecast is based on Karoon’s assumption that this work will be undertaken during the fourth quarter of CY24.

Overall, Baúna Project reservoir performance remains in line with previous market announcements. Based on the analysis of the cause of the production loss at well SPS-88 and the ongoing remediation plan, Baúna Project resources are not expected to be impacted.

KeyFacts Energy: Karoon Gas Brazil country profile