Karoon Energy Ltd (ASX: KAR) announced on Tuesday a downward revision to its calendar year 2026 production guidance, primarily due to operational setbacks at its Who Dat Joint Venture in the US Gulf of Mexico. Karoon Energy Ltd is an international oil and gas exploration and production company with assets in Brazil, the United States of America, and Australia. The adjustment reflects updated timelines for production reinstatement at key assets.
The operator of the Who Dat Joint Venture, LLOG Exploration Company, L.L.C., informed Karoon that, following recent technical analyses, the reinstatement of production through the Who Dat E manifold will now not occur in 2026. A remediation plan is being developed to restore the deferred production, including the removal of the failed riser, currently planned for the third quarter of 2026. Subject to laboratory analysis, E manifold production is expected to be restored in the second half of 2027. Who Dat is currently producing at approximately 3,000 (Net Revenue Interest) barrels of oil equivalent per day. Separately, production from the A-1 ST well remains on schedule to commence by mid-year, and G-1 ST well operations are planned for the fourth quarter of 2026, pending final approvals.
Consequently, Karoon’s CY26 Who Dat production guidance has been revised to 1.2 to 1.5 million barrels of oil equivalent (MMboe) (NRI), down from the previous range of 2.1 to 2.5 MMboe (NRI). This revision leads to an updated total production guidance of 7.2 to 8.2 MMboe for CY26, reduced from the earlier 8.1 to 9.2 MMboe. Brazil production guidance remains unchanged. The company also noted that while the SPS-92 and PRA-2 intervention programs at Baúna have faced mechanical issues and weather delays, both wells are nonetheless expected to be online around mid-year. Karoon is currently reviewing and optimising its overall 2026 investment expenditure across its Baúna, Who Dat, and other projects.
