• SPS-88 well intervention successfully completed, well resumed production ahead of schedule
• Bauna Project recommenced production, output above pre-shutdown levels
• Flotel campaign to reduce maintenance backlog and improve FPSO reliability ongoing

Karoon Energy has provided an update on its Bauna Project in Brazil. The company advises that the SPS-88 well intervention has been successfully completed, with the well resuming production on 28 March Brasilia Time (BRT), sooner than anticipated. Initial flow rates are in line with expectations, with the well currently producing at approximately 2,000 bopd on a restricted choke and gradually being opened further. The Bauna Project, which was shut down on 7 March BRT for annual scheduled maintenance, recommenced production on 27 March BRT. Output has since ramped up to approximately 26,500 bopd, above pre-shut-in levels with the resumption of SPS-88. Following a short period of flush production, natural decline of approximately 15% per annum is expected to resume. A flotel (floating hotel) has been moored adjacent to the Cidade de Itajaí (Bauna) FPSO since February and is expected to remain on site until 6 April. The flotel has been used to accommodate additional manpower for an extended maintenance campaign, aimed at reducing the FPSO maintenance backlog and improving equipment reliability. Further backlog maintenance work is planned to take place over the balance of 2025 and into 2026 and may involve another flotel campaign during 2026. The acquisition of the Bauna FPSO is progressing in line with the timetable, with the transaction expected to close at the end of April. The selection of the new operations and maintenance (O&M) contractor for the Bauna FPSO is targeted to be completed by mid-year.

The company's program to improve the reliability and uptime of the Bauna FPSO is progressing well, with FPSO efficiency in the first nine weeks of 2025, prior to the annual maintenance shutdown, exceeding 95%. The flotel campaign has allowed Karoon to complete an additional 71,000 hours on the next phase of activities to reduce the maintenance backlog and improve equipment redundancy. While there is still some way to go to fully clear the maintenance backlog and establish reliable and consistent FPSO performance, the work completed in the current campaign, together with activities expected to take place once Karoon takes over ownership of the FPSO, should enable the company to achieve its longer-term FPSO efficiency target of 90 - 95%, which will have a positive impact on production outcomes.