Karoon Cuts CY26 Guide After SPS-92 Cable Fault

Karoon (ASX:KAR) cut its 2026 Baúna and group production guidance after confirming an electrical fault on the SPS-92 well that has deferred about 3,500 bopd pending a planned rig-based cable intervention.

A monitoring-system fault was noted on 21 September 2026 (BRT time), with a controlled shutdown on 22 September. Analysis confirmed a fault in one of three electrical phases in the newly installed Electrical Submersible Pump power cable; the pump is now operating on two phases. Karoon believes a rig-based intervention to replace the cabling will be required to reinstate full operability. It has an existing option over a suitable drilling rig and has begun intervention planning; timing depends on permits and services. About 3,500 bopd will be deferred until the cable is replaced, and the deferral is currently not expected to affect Baúna reserves. Based on preliminary non-binding advice from insurance advisers, Karoon believes its insurance may partially offset lost production revenue and reimburse substantially all intervention and repair costs, subject to deductibles, policy terms and final insurer confirmation. Brazil CY26 guidance is revised to 5.4 - 5.7 MMbbl from 6.0 - 6.7 MMbbl, with the lower end reflecting conversion to gas lift if necessary. Who Dat is unchanged at 1.2 - 1.5 MMboe, so total CY26 production is now expected at 6.6 - 7.2 MMboe. Unit production cost guidance for CY26 is now US$15 - 16/boe, from US$12 - 15/boe.

Intervention timing is not yet set. Insurance coverage is not finally confirmed, and the root cause remains under investigation.