Karoon Energy shares jump as restored SPS-92 well lifts Baúna output
- Karoon Energy (ASX:KAR) has restored SPS‑92 production at Baúna to 8,600 bopd, taking project output to about 20,500 bopd
- 2026 Baúna capex guidance has increased to US$89–97 million, with total investment expenditure now estimated at US$178–202 million
- Karoon Energy (ASX:KAR) says Baúna is moving from a period of heavy investment to expected strong cash flow, supported by lower sustaining capex and FPSO cost savings
Karoon Energy (ASX:KAR) has restarted production from the SPS‑92 well at the Baúna Project in Brazil after replacing the well’s electrical submersible pump, with SPS‑92 now producing about 8,600 barrels of oil per day and total Baúna output at roughly 20,500 bopd before natural decline.
The company says a further production uplift of 1,000–2,000 bopd is expected once the PRA‑2 well is back online, and this restoration follows a partial pump failure in August 2025 that had reduced SPS‑92’s rate to around 4,500 bopd.
“Consistent with our stated commitment coming into 2026, Karoon strengthened and safeguarded its Baúna operations on time,” said Karoon Energy CEO and Managing Director Carri Lockhart.
Karoon reports that final SPS‑92 intervention costs were higher than first estimated due to weather‑related downtime, wellbore debris and equipment‑related non‑productive time, contributing to revised 2026 Baúna capex guidance of US$89–97 million, up from US$61–74 million, while Who Dat capex has been cut to US$72–85 million and Neon exploration spending lifted to US$14–16 million.
With the Baúna FPSO revitalisation and major well intervention campaign now substantially complete, Karoon states it expects materially lower sustaining capital needs at Baúna over coming years, excluding new growth projects, and says the SPS‑92 work has restored a high‑margin, low break‑even production stream.
Karoon says that at a Brent price of US$60–70 per barrel, targeted FPSO production efficiency of 90–95 per cent and annualised operating cost savings of US$30–40 million after the FPSO transition, Baúna is expected to generate strong operating cash flow, supporting the group’s broader portfolio across Brazil, the United States and Australia.
At the time of reporting the Karoon Energy (ASX:KAR) share price was AUD 1.36.
