Karoon Energy shares fall on lowered production guidance
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The news: ASX-listed Karoon Energy's shares have dropped after the Brazil-focused oil and gas company lowered its expected production guidance.
The numbers: Karoon’s shares fell 2.48% to $2.16 in early trading on the ASX, and over the last 12 months have increased 1.17%.
The company's quarterly results revised its CY24 production to 10.5 MMboe (million barrels of oil equivalent) to 12.5 MMboe from 11.2 MMboe to 13.5MMboe.
Its capital expenditure guidance for CY24 has increased to USD132 million ($207.09) to USD164 million from USD117 to USD134 million.
During the March quarter sales revenue fell 6% to USD196.6 million compared to the previous quarter’s USD209 million. Its Bauna field sales fell 19% as its production was 15% lower than the prior quarter due to ongoing floating production storage and offloading reliability issues, the shut in of the SPS-88 well for the full period and natural decline.
The context: The revised production guidance was due to a reduction in Who Dat production, mostly related to lower than expected deliverability and oil production being prioritised over gas. Karoon said this was expected to be partly offset by ongoing production system optimisation.
The increased costs included signature bonuses paid to ANP, the Brazilian oil and gas regulator, and the cost intervention activities in the SPS-88 well in the Bauna field.
The source: ASX announcement
