Karoon Energy (ASX: $KAR) receives approval for US Gulf of Mexico drilling

Karoon Energy Ltd. (ASX: $KAR) has received approval to drill the Who Dat East appraisal/exploration well and the Who Dat South exploration well, located offshore in the US Gulf of Mexico. The total cost of the two wells is expected to be US$67-77 million net to Karoon. The company's CY24 Capex Guidance has increased by US$67-77 million, bringing the total committed capex for CY24 to US$117-134 million.

Executive Commentary on US Gulf of Mexico Drilling Approval

The approval to drill the Who Dat East and Who Dat South exploration wells in the US Gulf of Mexico marks a significant milestone for Karoon Energy. These wells present valuable opportunities to delineate a discovery made in 2001 and test additional targets in the Middle Miocene section. We are committed to executing these drilling programs safely and responsibly, in line with our vision to be a leading, independent international energy company. The increased CY24 Capex Guidance reflects our dedication to pursuing these opportunities and creating lasting benefits for all our stakeholders.

Summary of US Gulf of Mexico Drilling Approval and Outlook

Karoon Energy's approval to drill the Who Dat East and Who Dat South exploration wells in the US Gulf of Mexico demonstrates the company's proactive approach to exploration and production. The estimated resources and geological probability of success associated with these wells indicate the potential for significant value creation. The increased CY24 Capex Guidance underscores the company's commitment to pursuing these opportunities and adapting to a dynamic world in an entrepreneurial and innovative way. Karoon Energy's vision to provide energy safely, reliably, and responsibly aligns with its strategic efforts in the US Gulf of Mexico, and the company remains focused on delivering long-term benefits for its stakeholders.