- 01Q3 output doubled to 2.27MMboe.
- 02Revenue rose 64% to US$191.6m.
- 03Baúna fault cut SPS-92 output; repairs under review.
- 042026 guidance held at 6.6–7.2MMboe.
Karoon Energy (ASX: KAR) more than doubled third-quarter production to 2.27 million barrels of oil equivalent (MMboe) as output recovered at its Baúna field in Brazil and the Who Dat development in the US Gulf Coast delivered stronger volumes.
Sales revenue climbed 64% to US$191.6 million despite weaker realised oil prices, reflecting the impact of restored wells and improved production reliability after extensive maintenance in the preceding quarter.
The rebound came with a complication, however, after an electrical fault late in September reduced output from Baúna's SPS-92 well, which remains in operation at a lower rate while investigations continue.
Karoon has retained its revised 2026 production guidance of 6.6–7.2MMboe, leaving the final quarter dependent partly on the performance of its existing wells and the unresolved SPS-92 issue.
Brazilian Production Recovery
Baúna produced 1.83 million barrels (MMbbl) during the September quarter, a 118% increase on the previous three months as SPS-92 returned following a pump replacement and the PRA-2 well resumed production in July.
Production benefited further from renewed water injection, which supports reservoir pressure, while the floating production, storage and offloading (FPSO) facility delivered 96% operating efficiency against a 90–95% target range.
That operational recovery helped lift Baúna sales to 1.97MMbbl, although its average realised price fell 15% to US$80.60 per barrel as global prices weakened and freight costs increased.
The late-quarter fault has since reduced SPS-92 production by approximately 3,500 barrels of oil per day (bopd), with the well operating at roughly 55% of its previous rate and total Baúna output currently around 16,400bopd.
Karoon is weighing repair options and pursuing potential insurance recoveries for damage, intervention costs and lost production income, although both the timing and extent of any payment remain uncertain.
Who Dat Growth Pipeline
Across the US Gulf Coast, Who Dat contributed 0.44MMboe on a net revenue interest basis, up 83% as the A1 sidetrack started producing in July and the floating production system operated at effectively full efficiency.
A1 output has increased from about 1,700 barrels of oil equivalent per day (boepd) in early July to approximately 2,400boepd, giving Karoon another contributor as it plans a G1 sidetrack for completion in the second quarter of 2027.
The company is also preparing to restore production from the E field towards the end of 2027, while the sanctioned Who Dat East development is targeting first production in the second half of 2028.
Who Dat East will initially use one well connected to existing infrastructure, with an estimated capital commitment of US$155–165m net to Karoon and an initial net production target of approximately 6,000boepd.
Capital Returns and Development Plans
The stronger quarter generated enough operating cash flow to fund capital spending and shareholder distributions, leaving Karoon with US$80.8m cash and US$269.2m net debt at 30 September.
It repurchased 13.3 million shares for US$16.0m during the quarter and paid a US$6.0m interim dividend, while total available liquidity stood at US$307.5m.
Beyond the producing assets, Karoon has refined its proposed Neon development in Brazil around a redeployed FPSO and phased investment, with a decision on entering front-end engineering and design (FEED) expected in the December quarter.
“We made encouraging progress and believe the revised project will demonstrate improved capital efficiency, reduced execution risk, and enhanced project economics,” chief executive officer and managing director Carri Lockhart said.
The company expects to revisit Neon farm-out discussions if FEED proceeds, balancing that potential development commitment against existing growth projects and a 2026 capital expenditure forecast of US$193–222m.
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