Karoon M&A - in talks for a new field, page-25

Additional acquisitions make a lot of sense. More cash from Ops to be able to develop Neon and Goia.

I would think if we have made a bid, it might only be for one of the fields, probably biting off too much with both.

I've noticed over the last 6 months, PB seem to have been putting several more fields available for sale, some shallow water smaller ones, and then some of the larger (upto 100k bopd) deeper water fields.

IMO, I would prefer KAR to focus more on the shallow water areas where they have more experience than move to deepwater unless they have a strong financially secure partner who will operate the deeper water fields. Non-operated fields could be excellent for KAR, more cash generation (allowing fro debt repayments) but with the focus still on their core areas of Bauna, Patola, Neon, Goia and potentially Piracaba if they can get hold of that.

I would be happy if KAR could add an extra 15k of production through acquisition, doubling current production but with similar production growth prospects as Bauna with intervention.