Acquisition Highlights

• Realises Karoon Energy Ltd’s (Karoon’s) highest priority strategic goal of acquiring a high quality, cash generating production asset
• 100% operating interest in the Baúna light oil field producing approximately 20 Mbopd
• US$665 million headline purchase price offset by operating cash flows from the effective date, 1 January 2019
• Transaction subject to final Brazilian regulatory approval, which is expected in the first half of calendar year 2020

Karoon (ASX:KAR) is pleased to announce that its wholly owned subsidiary, Karoon Petróleo e Gás Ltda, has executed a binding sale and purchase agreement to acquire a 100% operating interest in the Baúna field (Concession BM-S-40) located in the Santos Basin, offshore Brazil for a headline consideration of US$665 million.

The Baúna field consists of two producing oil reservoirs, Baúna and Piracaba, which are both tied back to the leased floating production, storage and off-loading facility (FPSO) Cidade de Itajai, and the existing undeveloped Patola discovery. The asset is currently producing light sweet crude at a rate of approximately 20 Mbopd.

The acquisition is also expected to deliver material operational and logistical synergies for the potential development of Karoon’s existing southern Santos Basin assets, Neon and Goiá.

Karoon’s Managing Director, Mr. Robert Hosking said: 
“The company has been working very hard over the past three years to acquire a high quality production asset with robust economic returns. Through the acquisition of the Baúna asset Karoon has delivered on its highest strategic priority.”

“Baúna will provide Karoon shareholders with material oil production (currently approximately 20 Mbopd before development workovers) and a platform for future growth. The transaction will be transformational for Karoon shareholders, providing significant exposure to reserves, resources and high margin oil production”

“The acquisition of Baúna opens a new phase for Karoon as a significant ASX listed oil producer. It is expected to generate significant operational and logistical synergies with Karoon’s other 100% owned southern Santos Basin exploration and development assets. “

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