Ann: March 2023 Quarterly Report, page-7

Lots to like here and look forward to:-

1. Bauna Intervention, Patola Production and Neon Control well CAPEX came in lower than previously forecast.
2. Deferred Payment on Bauna US$84.5m to Petronas made in January 23, paid from internal cash flow.
3. True Up US$43m on Brazilian Taxes also paid from internal cashflow.
4. CAPEX of US$64.7m also paid from internal cashflow.
5. No debt drawdowns on (2, 3 & 4 above) means Karoon is ahead of its business plans, thanks to strong production and prices in 2HCY22.
6. Hedging not required on debt facility, saves costs as no material drawdown.
7. Patola production at 12-15k per day is well ahead of 10k targeted.
8. Neon Concept Selection decision in first quarter of CY24 bodes well for 2nd asset development.

I am intrigued by the cash flows in FY23/24 once the maintenance is complete in May.

33,000-35,000 bbls/day,
= 12m bbls of production FY23/24
@US$80/bbl/
= US$960m or A$1.4bn of revenue.
@12/bbl cost of production

Karoon should be generating A$800m of pretax, pre CAPEX cash flow on A$1.2m market cap........ Exciting for long term Karooners.