• Electrical Submersible Pump (ESP) in SPS-92 well at Baúna shut down due to electrical cable failure
• Partial production restored, well currently producing 2,500-3,000 bopd
• Karoon investigating remediation options, including rig-based well intervention to replace ESP

Karoon Energy has advised that on 13 August 2025, the Electrical Submersible Pump (ESP) located downhole in the subsea SPS-92 well at the Baúna Project in Brazil shut down due to the failure of one of three electrical cables supplying power to the ESP motor. The SPS-92 well had been producing approximately 8,500-9,000 barrels of oil per day (bopd) during August. Partial production was restored on 18 August, utilising the remaining two electrical cables, with the well currently choked back and producing approximately 2,500 to 3,000 bopd. Karoon, together with the equipment supplier SLB, is investigating remediation options, with the expectation that this could result in a doubling of current rates. Based on analysis and testing, a rig-based well intervention to replace the ESP will be required to reinstate full production. Work to identify and contract a suitable drilling rig and planning for the intervention has commenced. Karoon already has a replacement ESP assembly and electrical power cable in stock, but other materials and regulatory approvals will be required, with the work not expected to start until the second quarter of 2026 at the earliest. While this issue will impact Baúna Project production until the intervention, given the strong performance over the first half of 2025 until the SPS-92 electrical fault, Baúna production guidance for the 2025 calendar year has been raised, from 6.7 - 7.7 million barrels of oil equivalent (MMboe) to 7.3 - 7.8 MMboe. Together with narrowed Who Dat guidance, total production for 2025 is now expected to be 9.7 - 10.5 MMboe.

Full year 2025 production guidance revised to 9.7 - 10.5 MMboe, up from prior guidance of 9.0 - 10.5 MMboe.