Production and Development On 6 November 2020, Karoon completed the acquisition of a 100% operating interest in Concession BM-S-40, which is located approximately 220 kilometres offshore Brazil in the southern Santos Basin. The concession holds the producing Baúna and Piracaba light oilfields and the undeveloped Patola oil discovery. The firm cash consideration paid to date, after operating and Karoon worked closely with the concession vendor, Petrobras, investing cash flows from Baúna in the period from Januaryduring a transition period between signing the Sales and Purchase 2019 to closing the transaction, was US$200 million. A deferred Agreement (SPA) in July 2019 and acquisition closure in November consideration of US$41.5 million (plus interest at 1month LIBOR 2020, to ensure the safe and efficient transfer of operatorship to plus a 3% margin) is also payable in May 2022 and a tiered Karoon. contingent consideration of up to US$285 million (plus interest at 2% per annum). Any contingent payment is dependent on theBaúna Concession annual average Platts Dated Brent oil price in each of the years Baúna originally came onstream in 2013. Production rates peaked from 2022 to 2026, and would be paid early in the year following at approximately 70,000 bopd before the field entered its decline the annual assessment period. phase, with production averaging 14,800 bopd when Karoon SANTOS BASIN, BRAZIL LEGEND Oil and gas field Oil field Rio de Janeiro Gas field Lead Oil pipeline São José dos Campos Gas pipeline Karoon Blocks São Paulo Towns Santos Mexilhão Area Belmonte Cedro Mexilhão Libra Franco Corcovado Mato do Gat Parati Iara Entorno Merluza Panoramix Macunaima Cernambi Lagosta Vampira Carcara Lula Guajamá Jupiter Bigua Piracucá Sapinhoa Neon S-M-1037 Abaré Oeste S-M-1101 Goiá Caramba Tubarao Baúna, Piracaba and Patola BM-S-40 Estrela do Mar Baúna Sul Shore Base Location Coral Brazil Itajai Caravela Sul Cavalo Marinho Clorita S-M-1537 Map Area Florianopolis NORTH South 200 km America Karoon Energy Ltd 16 Annual Report 2021