Karoon Energy cuts output guidance on project delays

· Karoon Energy has lowered its 2026 production guidance due to operational issues at its Who Dat joint venture in the United States.

· The company's share price dropped 10.48% to close at $1.67 following the morning announcement.

· The production cut is driven by technical analyses showing that production through the Who Dat E manifold will not resume in 2026.

Karoon Energy (ASX:KAR) has reduced its 2026 total production guidance to a range of 7.2 to 8.2 million barrels of oil equivalent.

The revised target compares against the previous market guidance of 8.1 to 9.2 million barrels of oil equivalent that the company had maintained until this update.

The operator of the venture, LLOG Exploration Company, advised that a remediation plan includes the removal of a failed riser in the third quarter of 2026.

Details from the joint venture show that Who Dat production guidance was lowered to between 1.2 and 1.5 million barrels of oil equivalent from the previous 2.1 to 2.5 million barrels of oil equivalent.

The business stated that production from the E manifold is now expected to be restored in the second half of 2027.

Following the announcement, the Karoon Energy share price was down at $1.67.

The company operates its primary oil and gas production assets across two core offshore basins located in Brazil and the United States' Gulf of Mexico.

Management previously completed the acquisition of the Baúna asset in Brazil, where production guidance for the current calendar year remains unchanged despite separate mechanical and weather delays.