Subsurface Evaluation and New Ventures As a result of the acquisition of Baúna and the sanction of the Baúna intervention campaign and Patola development, Karoon has evolved into a substantial production and development company. With a focus on short to medium term production growth, the Company has realigned its subsurface focus away from greenfield exploration to one of maximising near-field exploitation and support for new production opportunities. The Company now manages major infrastructure in the Santos Karoon’s near-term subsurface and new ventures priorities are as Basin, offshore Brazil, including a shore base, helicopters, support follows: vessels and project management personnel, as well as having an Exit the Company’s greenfield exploration portfolio through experienced operational, financial and commercial team based in • Rio de Janeiro. relinquishing or farming out the relevant interests as appropriate, in as timely a manner as possible. The Company will not seek There are material operational and logistical synergies to be gained any new greenfield exploration opportunities. by fully utilising this infrastructure and expertise. Therefore, Mature near field exploration and appraisal opportunities Karoon’s subsurface activities are now focused on finding and • developing low-risk, near-field opportunities in the Santos Basin close to Baúna and in our southern Santos Basin acreage. that can leverage off the Company’s infrastructure base, and on Recent work to optimise the Neon development concept has supporting potential new business opportunities that can drive been encouraging. In addition, we will seek to exploit key short to medium term production growth. learnings from the Baúna field, leveraging geophysical studies and detailed understanding of the reservoirs to efficiently de- Brazilhas a stable, well-developed oil and gas industry, with risk prospectivity. Studies indicate that there may be significant established and attractive fiscal terms. In addition, the Santos and remaining potential in post-salt reservoirs similar to the Campos Basins represent a world class petroleum province with an Oligocene turbidite sandstones in Baúna. abundance of opportunities. Karoon has a competitive advantage • Evaluate acreage immediately adjacent to Karoon’s operational due to its operational experience, network and knowledge of Brazil footprint that becomes available through the regular bid rounds and can use its world class technical expertise in advanced seismic and the Permanent Offer processes, and through potential analysis to de-risk nearfield exploration and appraisal opportunities. mergers and acquisitions, subject to strict risk and capital management considerations. Karoon’s Focus – Braziland Australia WA-482-P Northern Carnarvon Four blocks offshore Basin KEY Santos Basin, including the Baúna Karoon assets producing oil field, the Patola field under development and the Neon and Goia oil discoveries Karoon Energy Ltd 20 Annual Report 2021