Karoon Energy : Investor Review October 2019

October Review: Baúna Acquisition

7 October 2019

Disclaimer

This presentation has been prepared by Karoon Energy Ltd. The information contained in this presentation is for information purposes only and does not constitute an offer to issue, or arrange to issue, securities or other financial products. The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person.

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of Karoon Energy Ltd, its directors, employees or agents, nor any other person accepts liability, including without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies.

Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance.

The distribution of this document in jurisdictions outside Australia may be restricted by law. Any recipient of this document outside Australia must seek advice on and observe any such restrictions.

Petroleum exploration relies on the interpretation of complex and uncertain data and information which cannot be relied upon to lead to a successful outcome in any particular case. Petroleum exploration is inherently uncertain and involves significant risk of failure. All information regarding Prospective resource estimates and other information in relation to Karoon's assets is given in the light of this caution.

This presentation may contain certain 'forward‐looking statements' with respect to the financial condition, results of operations and business of Karoon and certain plans and objectives of the management of Karoon. Forward looking statements can generally be identified by words such as 'may', 'could', 'believes', 'plan', 'will', 'likely', 'estimates', 'targets', 'expects', or 'intends' and other similar words that involve risks and uncertainties, which may include, but are not limited to, the outcome and effects of the subject matter of this presentation. Indications of, and guidance on, future exchange rates, capital expenditure, earnings and financial position and performance are also forward‐looking statements.

You are cautioned not to place undue reliance on forward looking statements as actual outcomes may differ materially from forward looking statements. Any forward‐looking statements, opinions and estimates provided in this presentation necessarily involve uncertainties, assumptions, contingencies and other factors, and unknown risks may arise, many of which are outside the control of Karoon. Such statements may cause the actual results or performance of Karoon to be materially different from any future results or performance expressed or implied by such forward looking statements. Forward‐looking statements including, without limitation, guidance on future plans, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Such forward looking statements speak only as of the date of this presentation.

Karoon disclaims any intent or obligation to update publicly any forward‐looking statements, whether as a result of new information, future events or results or otherwise

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Resources Summary

The contingent and prospective resource volume estimates presented in the tables below were assessed by Karoon's Engineering Manager, Mr Lino Barro, and are based on seismic survey data, geological and engineering well data and other regional geological and engineering information. They were prepared on a probabilistic statistical aggregation basis in accordance with the Petroleum Resources Management System approved by the Society of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists and the Society of Petroleum Evaluation Engineers.

The contingent and prospective resource volume estimates presented were disclosed in the 8 May 2018 ASX announcement Resources Update'. Karoon is not aware of any new information or data that materially affects these resource estimates and all material assumptions and technical parameters underpinning the estimates in the relevant ASX announcement continue to apply and have not materially changed.

Net Contingent Resource (mmbbls)

Discovery	Block	Basin, Country	Interest	Type	1C	2C	3C
Neon	S-M-1037	Santos, Brazil	100%	Oil	30	55	92
Goiá	S-M-1101	Santos, Brazil	100%	Oil	16	27	46
TOTAL					46	82	138

The discovered contingent resources are categorised as contingent because further evaluation is required to confirm commerciality.

Net Unrisked Prospective Resource (mmbbls)

Basin, Country	Block / Permit	Interest	Type	Low	Best	High
Tumbes, Peru	Z-38	40%	Oil	223	549	1,350
Northern Carnarvon, Australia	WA-482-P	50%	Oil	445	1,398	3,727
TOTAL				668	1,947	5,077

Prospective Resources Cautionary Statement:

The estimated quantities of petroleum that may potentially be recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. There is no certainty that any portion of the prospective resource estimated on behalf of Karoon will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resources evaluated.

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Section 1

Karoon investment highlights

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Transformational Acquisition

The Baúna acquisition will produce stable cashflows over the medium to long-term, enabling Karoon to pursue further investment opportunities

Current field production of circa 20,000 bopd1

Target production growth has the potential to deliver circa 33,000 bopd2 during CY 2022

2P reserves of 52.5 MMbbls and 2C resources of 18.8 MMbbls independently assessed by AGR3

Estimated life of project operating cost production of 33° API oil of US$18.50/bbl, produced oil from Baúna expected to be sold at a benchmark to Brent

Located nearby and synergistic to Karoon's oil discoveries Neon and Goiá which have total Contingent Resources of 82 million bbls4

Effective utilisation of Karoon's existing technical personnel with strong development

and production experience

1. Petrobras announcement, dated 24 July 2019;
2. Following well-workovers to replace/install pumps and the drilling and tie-in of the existing undeveloped Patola oil discovery;
3. Independently calculated by AGR Petroleum Services as per Karoon's ASX announcement, dated 29 August 2019.
4. As per Karoon's ASX announcement "Resources Update", dated 8 May 2018.

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