Karoon Energy gains 2.5% as Q4 oil sales improve

The news: Karoon Energy shares have jumped 2.5% in early trading, after the oil and gas producer boosted Q4 sales despite a drop in production.

The numbers: Karoon's oil sales proceeds jumped 37% from USD187.1 million ($284.4 million) to USD256.2 million in the December quarter. Production volumes fell 11% between quarters from 2.85 million barrels to 2.53 million barrels. Karoon shares were trading 2.5% higher at $1.952 by 11:30am AEDT. Oil is also trading higher than before the long weekend, with Brent futures up more than 4% to USD83.07 after attacks on freight tankers in the Red Sea escalated over the weekend.

The context: Karoon has been positioning for growth and recently purchased assets in the Gulf of Mexico, broadening its geographic asset base beyond Australia and Brazil.

What they said: "The transaction ... is expected to increase CY24 production by approximately 50% (on a net revenue interest basis) and lift 2P Reserves by approximately 75% (net working interest)," Karoon CEO Julian Fowles said in a statement.