• 2025 first quarter production down 9% due to planned maintenance shutdown at Baúna Project
• Neon development progresses to Define phase with potential for value-accretive returns
• Acquisition of Baúna FPSO on track, tender for new operations and maintenance contractor underway

Karoon Energy Ltd has reported its 2025 first quarter results, with production on a Net Revenue Interest (NRI) basis down 9% to 2.36 MMboe, largely due to a planned 20-day shutdown in March for maintenance at the Baúna Project. The Baúna FPSO efficiency excluding the shutdown was 97.3%, compared to 84.6% in the prior quarter. Sales volumes of 2.15 MMboe were 32% lower than the previous quarter, reflecting the lower production and timing of Baúna shipments. The company reported no recordable safety incidents during the quarter. Karoon completed a 60-day flotel-supported maintenance campaign at Baúna and the SPS-88 well resumed production after a successful intervention. Concept Select work on the Neon development was completed, with a significant increase in Contingent Resources and confirmation that the development has the potential to be value-accretive. Neon has now progressed to the first stage of the Define phase, with a capital commitment of US$7-10 million. In the US Gulf, the Who Dat gross production rate was 31,862 boepd, 8% higher than the prior quarter. Karoon completed its second US$25 million share buyback during the quarter and paid the 2024 final dividend. The company's 2025 investment expenditure guidance has increased to US$105-125 million, reflecting the addition of the first stage of Neon Define costs.

2025 investment expenditure guidance has increased to US$105 - 125 million, reflecting the addition of the first stage of Neon Define costs of US$7 - 10 million. All other 2025 production and cost guidance provided on 27 February 2025 remains unchanged.

Karoon's operations in Brazil and the US Gulf are among the lowest cost per boe for small to mid-cap IOCs, with 2025 unit production costs forecast to be US$12.5 - 17.5/boe on a net working interest basis, with further cost reductions expected to flow through in 2026 following the completion of the Baúna FPSO acquisition and O&M contractor transition. The company is monitoring the current global market turmoil and recent volatility in oil prices closely, with a focus on safe and reliable operations and strong financial discipline.