Karoon Energy lifts FY26 capex guidance as Bauna production restored
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The news: Karoon Energy has announced that its crude production at the Bauna site has been restored following a successful well intervention to replace the electrical submersible pump (ESP).
The context: Production from the SPS-92 well at the Bauna project has reached 8,600 barrels of oil per day (bopd), lifting total site production to approximately 20,500 bopd prior to natural decline.
This follows a partial ESP failure in August that reduced Bauna’s daily production rate to 4,500 bopd.
With the well intervention achieved and production reinstated, Karoon Energy has upgraded its FY26 investment guidance for the Bauna project to a range of USD89 million ($129 million) to USD97 million, up from the previous USD61 million to USD74 million. The revised change was due to intervention costs being higher than anticipated due to weather-related downtime and non-productive time encountered during execution.
The company’s total capital expenditure is now expected to reach between USD178 million and USD202 million, up from the USD150 million to USD183 million previously guided.
Separately, the company has announced a further on-market share buyback commencing in July, following the completion of the second phase of its USD75 million program.
