Karoon Energy posts 18% drop in Q3 revenue on production disruption
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The news: Karoon Energy reported an 18% drop in total revenue for the March quarter to USD128.2 million ($178.4 million), compared to the December quarter, primarily driven by production decrease at its Baúna Project in Brazil and Who Dat in the US Gulf of Mexico.
The numbers: In the three months ended March, oil production at Baúna fell by 9% to 1.56 MMbbl (one million barrels), compared to the previous quarter. Meanwhile, total Who Dat production saw a 42% drop to 0.38 MMboe on a net revenue interest basis.
The average realised price for Baúna oil rose 16% to USD71.12 per barrel, while Who Dat gas sales jumped 78% to USD7.64 per thousand cubic feet (mcf).
The context: Karoon said the revenue drop was due to natural reservoir decline alongside intermittent rate reductions and unplanned maintenance at its Baúna Project.
Volumes at the Who Dat asset were also impacted by the closure of two risers connected to the E-manifold in February after developing a leakage. This resulted in a production loss of approximately 15,000 barrels of oil equivalent per day across seven wells.
The company now expects its FY26 capital expenditure guidance for the Who Dat operation to be between USD76 million and USD94 million, up significantly from the previous target of USD37 million to USD46 million.
The source: ASX
