Glossary of Terms Continued Term Definition ESP Electric submersible pump (downhole equipment). exploration The process of identifying, discovering and testing prospective hydrocarbon regions and structures, mainly by interpreting regional and specific geochemical, geological, geophysical survey data and drilling. farm‑in and farm‑out A commercial agreement in which an incoming joint operation participant (the ‘farmee’) earns an interest in an exploration tenement by funding a proportion of exploration and evaluation expenditures, while the participant owning the interest in the exploration tenement (the ‘farmor’) pays a reduced contribution. The interest received by a farmee is a farm‑in while the interest transferred by the farmor is a farm‑out. FBT Fringe Benefits Tax in Australia. FEED Front End Engineering and Design. FID Final Investment Decision. field An area consisting of a single reservoir or multiple reservoirs all grouped on or related to the same individual geological structural feature or stratigraphic condition. The field name refers to the surface area although it may refer to both the surface and underground productive formation. financial year Financial year ended 30 June 2021. FPSO Floating production, storage and off‑loading facility. GAB Great Australian Bight. G&G Geological and geophysical. GHG Greenhouse Gas. GST Goods and Services Tax in Australia. HSSE Health, safety, security and environment. hydrocarbon A compound of the elements hydrogen and carbon, in either liquid or gaseous form. Natural gas and petroleum are mixtures of hydrocarbons. IBAMA e Brazilian environmental agency, the Instituto Brasileiro do Meio Ambiente e dos Recursos Naturais Renovaveis. IOR Improved Oil Recovery. Karoon orGroup Karoon Energy Ltd and its subsidiaries. km Kilometres. lead A potential hydrocarbon target which has been identified, but requires further evaluation before it is drill ready, at which point it becomes a prospect. LIBOR London interbank offered rate. LTI Long‑term incentive. market capitalisation The product of a company’s share price multiplied by the total number of ordinary shares issued by the company. m Million. MMbbl Millions of barrels (1,000,000 barrels). NOPTA National Offshore Petroleum Titles Administrator. OMS Operating Management System. Karoon Energy Ltd 136 Annual Report 2021