Karoon Strategy Seminar - 28 October , 930am, page-12

Here is a laundry list of things I'd like to see:-

• Confirmation of Bauna & Patola estimated output by end 2022 over 30,000 bbl/day and associated synergies.
• Update on Neon expansion, including viability on tie in to existing FPSO, synergies, CAPEX and timing. Announcement seems imminent.
• In country Brazil M&A.
• I am most bullish on an Atlanta JV with Enauta (www.enauta.br). The controlling shareholders look like good solid local partners - old Brazilian money. Atlanta looks like an undervalued producing growth asset that can ramp up production like Bauna, with relatively quantifiable risks.
• Albacora and Albocora Leste look interesting too, but higher risk & more investment with less control for Karoon who likely would be relegated to a small junior partner. Maybe too big for Karoon?
• Nat Gas. We have not heard anything about the tail payments due from the 2014 Browse Basin sale to Origin. With Nat Gas prices at decade highs and importantly higher than at the time of the sale to Origin, will the first $75m FID decision payment start to come into play if prices are sustained over the Northern Hemisphere winter as looks likely? A second $75m payment looks more distant on first production which is probably half a decade away as is a further $50m contingent payment on 2P reserves post first production.