Karoon Energy shares slide on trimmed production guidance
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More news: Shares in Karoon Energy tumbled in early trading on the ASX after the oil and gas explorer cut its 2024 production guidance.
Karoon shares were down 6.1% to $1.31 by 10:55am AEDT, having retreated by around 33% over the past 12 months.
Karoon Energy cuts 2024 production guidance
The news: Oil and gas explorer Karoon Energy has lowered its 2024 production guidance after a production shut-in at its Baúna project in Brazil last week.
The numbers: Karoon advised that due to the anchor chain related shut-in, Baúna guidance for the calendar year has been reduced from 7.5 million to 7.7 million barrels of oil (MMbbl), to between 7.2 million and 7.4 million MMbbl, depending on when the repairs are finalised.
Meanwhile, Karoon expects production at its Who Dat site in the Gulf of Mexico to be 2.9 million barrels of oil equivalent (MMboe), below the guidance range of 3 to 3.1 MMboe.
As a result, total production guidance for CY24 has been cut from 10.5 to 10.8 MMboe to 10.1 to 10.3 MMboe.
The context: The Baúna project was shut-in on 11 December after two of the sixteen anchor chains, that moor the site's floating production storage and offloading (FPSO) system, failed.
Karoon said the project is expected to resume operations during the week of 23 December, once repairs are completed and regulatory necessary authority approvals are received.
Earlier this year, Karoon's Who Dat project was impacted by Hurricane Rafael, which extended the site's scheduled maintenance shut-down period from 10 to 14 days to 18 days, with a slower-than-anticipated ramp up back to full production.
The source: ASX announcement
