Ann: Restart of Bauna production, page-27

I agree and I believe there several reasons for this, most of which can be addressed by management:

1. Karoon remains a stock that many investors have been burned on in the past decade. The previous management was unloved / disliked by the market and "mistakes" were made in their past drilling programs in Australia and delays in Brazil / Peru M&A / drilling. So some of this skepticism was justified and resulted in the company bring put into the high beta / speckkie stock bin. New management have done an excellent job turning around this impression with excellent execution on the Bauna / Patola business plan over the past 2 years. However it takes time and the market will require more hard evidence (that should be forthcoming in this weeks quarterly and August's YE results) over several years to change its view of the company.

2. Brazil is now the company's future and its not a well understood market down under. The recent export tax duties, scandals at the state controlled Petrobras and a left leaning government has no doubt spooked some investors. The industry seems to retain an important place in the "Lula" government plans as it recognises the need for more investment. Over time I expect the results to speak for themselves, especially as offshore Brazil & many parts of Sth America remains one of the most important prospective oil regions in the world

3. Absence of capital management and dividends. Most major oil companies have strong capital management programs at present, Exxon Mobile, BP, Shell, Chevron, Total, et al and there has been a fundamental shift to focus on shareholder value during this cycle (unlike the last when profits were wasted on uneconomic drilling). Karoon is primed for capital management now that the Bauna intervention & Patola expansion is complete and oil is flowing above 30,000 bbls/day. Management has indicated its willingness to respond to this free cash flow with capital management and turning Karoon into a high yielding dividend paying stock with a buyback program in 2H23 will attract a whole new class of investors.

After a 12 month period when the stock has been basically flat, I believe new management is professional and aware of the need to rerate the stock soon,