Well, well, well
DRILL RESULTS
Need To Know
- Second well in Bauna Intervention program producing at 3,700 bopd
- Production at first well intervention stable at 4,000 bopd
- Third well intervention underway
Investment implications
Karoon’s Bauna Intervention program is achieving strong results.
After just two wells in the program, KAR is already achieving more than 5kbopd which is the lower end of its 5-10kbopd target.
The second well intervention (SPS-56) has been completed and is producing at 4,000 bopd compared to the previous production rate of 750 bopd.
The first well in the campaign, PRA-2 is maintaining production at 4,000 bopd (1,900 bopd previously).
The third intervention well (SPS-92) has commenced and is expected to be completed in late September. This may be the largest of the intervention wells in the 4-well program.
KAR is also compiling its new reserve update after reassessing the seismic data and accounting for lower decline rates. The internally assessed 2P reserves on 30 June 2022 are 44.8mmbbls.
The combined Bauna and Patola projects are expected to bring an extra 30kbopd of production.
KAR is a well-managed, low-cost oil producer with production and reserves quickly increasing. We expect reserve upgrades during 1H23.
Stock overview
Share Price
Company overview
KAR is a Brazil-focused oil production company, based in Melbourne. Its main assets are located in the Santos Basin offshore Brazil where the company has 100% interest in the Bauna field and is the operator.
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