Karoon Energy shares jump on strong oil production, revenue in Q2

The news: Shares in Karoon Energy climbed in afternoon trade after the oil and gas explorer produced 1.08 million barrels of oil equivalent (MMboe) in the second quarter and generated sales revenue of USD116.4 million ($166 million), driven by higher realised oil prices.

Shares rose 4% to $1.62 at 1:52pm AEST.

The context: Karoon stated that the strong quarterly production was due to its Brazil-based Bauna operations, which completed maintenance on 27 May, restoring production from its SPS-92 and PRA-2 wells resulting in an operational efficiency of 97% and reinstated production of approximately 10,000 bopd.

The company also generated cashflow of USD363.6 million at the end of the quarter, against net debt of USD269.7 million.

Karoon projects strong free cashflow in the second half of 2026, assuming oil prices average USD60 to USD70 per barrel.