Australia’s Karoon Power Restricted has elevated its 2024 capital expenditure steering to a variety of $50 million to $57 million from its earlier steering of $40 million to $47 million.
The CAPEX steering improve displays further capital prices incurred by the Who Dat, Dome Patrol and Abilene joint ventures, primarily related to the completion of a further hydrocarbon zone encountered within the G2 sidetrack properly, Karoon mentioned in its most up-to-date quarterly report.
The rise additionally consists of signature bonus funds anticipated to be made in April to the Brazilian Nationwide Company for Petroleum, Pure Gasoline and Biofuels (ANP) associated to the 2 deepwater exploration blocks awarded to Karoon in December 2023, the corporate mentioned.
For the December 2023 quarter, Karoon reported manufacturing of two.62 million barrels of oil equal (MMboe), down 8 % from the earlier quarter.
The corporate’s whole manufacturing from BM-S-40, or the Baúna Venture, for the quarter was 2.53 million barrels, 11 % decrease quarter over quarter. Manufacturing was impacted by the formation of hydrates in two wells due to operational points within the fuel elevate dehydration unit on the floating manufacturing storage and offloading (FPSO). The hydrate concern in a single properly was resolved inside per week, however the second properly, SPS-88, remained offline past the tip of the quarter, Karoon mentioned.
“The December 2023 quarter was a transformational interval for Karoon”, Karoon Managing Director and CEO Julian Fowles mentioned. “ In November, Karoon introduced that it was buying a 30 % working curiosity within the Who Dat and Dome Patrol oil and fuel fields within the US Gulf of Mexico (GoM), plus pursuits in surrounding exploration acreage, for $720 million. The transaction, which was accomplished on 21 December 2023, is predicted to extend [calendar year 2024] manufacturing by roughly 50 % (on a Web Income Curiosity foundation) and elevate 2P Reserves by roughly 75 % (Web Working Curiosity)”.
“The acquisition of property within the US GoM is a vital milestone for Karoon. It marks the evolution of the corporate from a single asset operator to an oil and fuel producer with prime quality property in two of the world’s main offshore oil and fuel producing areas. It additionally gives one other platform for Karoon’s development. The transaction was funded by a brand new debt package deal, a well-supported fairness elevating and the drawdown of present money. After finishing the transaction, the Firm’s steadiness sheet stays sturdy, with modest gearing, reflecting ongoing robust money flows from operations and a conservative debt place”, Fowles continued.
“The quarterly outcomes included simply 11 days’ contribution from the Who Dat property, from the transaction completion date of 21 December to 31 December 2023. The event program being undertaken by the operator, LLOG, is nearing completion, with two wells, G2-ST2 and G4, anticipated to be introduced onstream throughout February. These two wells are anticipated to have the potential so as to add an preliminary 9,000 to 12,000 boepd [barrels of oil equivalent per day] (gross) to Who Dat manufacturing, previous to pure decline”, he added.
Earlier within the month, the corporate mentioned it anticipated its whole manufacturing for 2024 to be in a variety of 11.2 to 13.5 MMboe, in comparison with the earlier vary of 12 to 14.5 MMboe, with steering for Who Dat within the U.S. Gulf of Mexico unchanged.
The corporate’s Brazil manufacturing for the 12 months is anticipated to be within the vary of seven.2 million to 9.0 million barrels in comparison with the earlier vary of 8.0 million to 10.0 million barrels, Karoon mentioned.
To contact the writer, e-mail rocky.teodoro@rigzone.com