• Successful bid for six blocks in Brazil's Santos Basin
• Two blocks contain the Piracucá discovery, potential tie-back to Neon FPSO
• Four deepwater blocks acquired to consolidate position in the area

Karoon Energy Ltd has successfully bid for six blocks in the ANP 5th Permanent Offer Bid Round for Concession Contracts in the Santos Basin, offshore Brazil. Two of the blocks, S-M-974 and S-M-1038, are located approximately 17 kilometres from the Neon field and contain the Piracucá discovery. Initial technical studies suggest the Piracucá discovery could be an attractive tie-back candidate into a potential Neon FPSO, subject to the proposed Neon development achieving a Final Investment Decision and necessary regulatory approvals. Karoon also secured four deepwater blocks (S-M-1484, S-M-1605, S-M-1358, S-M-1603) located adjacent to its existing deepwater exploration acreage in the Santos Basin, around 80 kilometres southeast of the Baúna field. This was a strategic move to consolidate Karoon's position in the area at a low entry cost. The bids included a bonus payment of approximately US$14.8 million in total and a minimum work program of US$20.2 million to be undertaken within seven years of the formal award of the blocks.

Karoon's 2025 capex guidance has increased to US$120 -140m to incorporate the signature bonus payments and work programme guarantees associated with the successful participation in the bid round.