Karoon Energy (ASX: $KAR) March 2024 Quarter Production Report

Karoon Energy Ltd (ASX: $KAR) reported a significant 18% increase in total production for the March 2024 quarter on a Net Working Interest (NWI) basis, reaching 3.11 MMboe. The sales revenue for the quarter was US$196.6 million, based on sales volumes of 2.74 MMboe. The company has revised its CY24 production guidance to 10.5 - 12.5 MMboe, primarily reflecting a downgrade in Who Dat production due to lower than expected deliverability and prioritization of oil production over gas.

Executive Commentary on March 2024 Quarter Production

Karoon CEO and MD, Dr Julian Fowles, highlighted the increase in production from Baúna and Who Dat assets, emphasizing the achievement of this increase without any Lost Time or Recordable incidents. He also addressed the impact on production, particularly the lower than forecast production from Who Dat, primarily due to delays in bringing new wells online and bottlenecks in the production system. Dr Fowles also discussed the company's revised CY24 production forecast, reflecting the ongoing prioritization of higher value oil production over gas.

Summary of March 2024 Quarter Production and Outlook

Karoon Energy's March 2024 quarter production saw a notable increase, driven by the full period of production from the Who Dat assets. However, the company has revised its CY24 production guidance to 10.5 - 12.5 MMboe, mainly due to a downgrade in Who Dat production. The focus on prioritizing higher value oil production over gas has influenced this revision. The company also provided insights into the progress of the Neon Foundation Project, exploration wells, and potential development concepts. Karoon's outlook includes ongoing discussions to optimize production and the expected drilling of exploration wells in the US Gulf of Mexico. The company's sustainability efforts and financial position were also addressed, including its net debt position and cash flows.