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    KAR   AU000000KAR6

KAROON ENERGY LTD

(KAR)
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Karoon looks to grow in Brazil with own oil fields, acquisitions

09/20/2021 | 03:39am EDT

MELBOURNE, Sept 20 (Reuters) - Karoon Energy sees strong growth prospects in Brazil, where it started producing oil last year, working to more than double output by 2023 and considering two options to develop another field by mid-decade, its chief executive said on Monday.

Karoon produced an average of just over 13,000 barrels per day (bpd) in the eight months to June 30 after buying the Bauna oil field from Petrobras for $665 million, and booked oil sales revenue of $170.8 million and a small net profit.

"The result reflects quite a big transformation for Karoon through the year," said Chief Executive Julian Fowles, who took the reins 10 months ago and has appointed a new chief financial officer and new head to run operations in Brazil.

Karoon aims to add between 15,000 and 20,000 bpd by early 2023 by boosting output from existing wells at Bauna and then connecting in the Patola field, a project expected to cost around $185 million.

That is going to be largely funded by a $160 million debt facility, the company's first, which it has lined up with Deutsche Bank, ING, Macquarie and Royal Dutch Shell, and positions it to secure further debt for acquisitions.

"We've really now got a bit of a presence in the debt market. And we think that anything that we do in the future inorganically would have a large component of debt involved in it," Fowles told Reuters.

He declined to comment on whether Karoon will be bidding for the Albacora and Albacora Leste fields that Petrobras has put up for sale.

Karoon is looking at developing the Neon field, either by building a 50 km to 60 km undersea pipeline to tie it into the Bauna floating production and storage and offloading (FPSO) vessel or by installing an FPSO on top of the Neon field.

Fowles said tying Neon into the Bauna FPSO is looking increasingly attractive, as it will save on capital costs and operating costs and could help it extend the life of the Bauna field by spreading fixed costs across the two fields.

If the company went ahead with developing Neon, first production would be around 2025 or 2026, Fowles said.

Karoon is working on a strategy to help cut emissions from its operations and seek offsets, which it plans to outline in October, as it looks to attract more environmentally-conscious lenders and investors. (Reporting by Sonali Paul Editing by Mark Potter)


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
DEUTSCHE BANK AG 3.16% 11.412 Delayed Quote.27.52%
KAROON ENERGY LTD 3.17% 1.625 End-of-day quote.53.30%
MACQUARIE GROUP LIMITED 3.66% 189.56 End-of-day quote.36.89%
PETRÓLEO BRASILEIRO S.A. - PETROBRAS -0.27% 29.6 End-of-day quote.4.45%
All news about KAROON ENERGY LTD
10/07Royal Dutch Shell, Chevron, TotalEnergies Sign Up for Brazil's $101 Million Oil Auction
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09/20Karoon looks to grow in Brazil with own oil fields, acquisitions
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09/19Karoon Energy Ltd Reports Earnings Results for the Full Year Ended June 30, 2021
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09/12Aurelia Metals' New Non-Executive Director to Succeed as Chairman
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08/26Shareholder group asks Petrobras to skip auction of areas near coral reefs
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08/16KAROON ENERGY : Appoints CFO
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08/15Karoon Energy Announces Appointment of Ray Church as its New Executive Vice President, ..
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08/15Karoon Energy Announces Executive changes
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06/16Karoon Energy Secures Development Plan Approval for Brazil Oil Fields
MT
06/15Karoon Energy Ltd Receives Approval for Neon and Goia Integrated Development Plan
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More news
Financials
Sales 2022 416 M 309 M 309 M
Net income 2022 70,1 M 52,0 M 52,0 M
Net cash 2022 76,0 M 56,4 M 56,4 M
P/E ratio 2022 12,0x
Yield 2022 -
Capitalization 901 M 669 M 669 M
EV / Sales 2022 1,98x
EV / Sales 2023 1,19x
Nbr of Employees -
Free-Float 90,6%
Chart KAROON ENERGY LTD
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Technical analysis trends KAROON ENERGY LTD
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TrendsBullishBullishBullish
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Mean consensus BUY
Number of Analysts 4
Last Close Price 1,63 AUD
Average target price 1,89 AUD
Spread / Average Target 16,2%
EPS Revisions
Managers and Directors
Julian Fowles Chief Executive Officer, MD & Director
Ray Church Chief Financial Officer & Executive Vice President
Bruce John Phillips Independent Non-Executive Chairman
Clark Davey Independent Non-Executive Director
Peter John Turnbull Independent Non-Executive Director
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