Good report and confirms plenty of liquidity / cash in the bank...

Good report and confirms plenty of liquidity / cash in the bank to fund all payments for Bauna and CAPEX.

Plenty to look forward to :-

1. 29 Feb 2HFY23 results.
2. Neon feasibility decision due by the end of March 24.
3. Who Dat expansion wells G2-ST2 and G4 expected to add 9,000 to 12,000 Boepf (gross) in February, so 3000-4000 bbls net to Karoon.
4. GOM to drill 3 exploration wells this year. Who Dat East (40% Karoon interest, 17m bbls 2C), 17 Miles from Who Dat FPS looks imminent, then later in the year Who Dat West (35%) and Who Dat South (30%).
5. Nice to see this new asset developing and enlarging reserves, diversifying acerage and extending production life. Exploration in GOM will deliver long term value to Karoon. Note, Karoon has a higher interest in some of these GOM exploration assets, so seems that Karoon management has made a bet on their geology and probability of exploration success. This seems to be CEO Julian Fowles style (ex Shell, upstream oil man).
6. Restoration of SPS-88 production at Bauna later in 2024. Production at Bauna is already back up to 23,000-25,000 bblspd so will be interesting to see how much production can be bumped up by when SPS-88 is back online.

Karoon is a huge cash cow now. On its low end FY24 guidance of 3m barrels per quarter it will be able to pay off its debt by the 1H24 and then dividends and buybacks.

At current US$80 POO, quarterly revenue is running at US$240m or A$360m. That's an annualised A$1.4 billion revenue and with mid point US$12.75 /bbl production costs, Karoon is generating US$800m (A$1,212m) in pre tax, gross margins vs a market cap of only A$1,574m (US$1,038m) Stock remains extremely cheap and overdue a rerating.