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Karoon Energy Advances Neon Field Development with Key Milestone

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The latest update is out from Karoon Energy Ltd ( (AU:KAR) ).

Karoon Energy Ltd has announced that its Neon development opportunity has achieved a significant milestone by passing Decision Gate 2, allowing it to move into the Define phase, which includes Front End Engineering and Design (FEED). The company has reported a substantial increase in Neon Contingent Resource estimates, with the first phase targeting 60-70 million barrels of oil. The Define phase will be conducted in three stages to manage market volatility and capital exposure, with the initial capital commitment ranging from US$7 to 10 million. Karoon plans to secure a partner through a farm-down process, which is essential before making a Final Investment Decision. The revised Phase 1 capital costs are estimated at US$0.9 to 1.2 billion, with first oil expected by early 2029 and a peak production rate of 40,000 to 50,000 barrels of oil per day.

More about Karoon Energy Ltd

Karoon Energy Ltd is an oil and gas exploration and production company, primarily focused on developing offshore resources. The company operates in the Santos Basin, offshore Brazil, and is involved in the exploration and potential development of the Neon field, which represents a significant opportunity for growth and expansion in the energy sector.

YTD Price Performance: -10.96%

Average Trading Volume: 4,596

Technical Sentiment Signal: Buy

Current Market Cap: $582.8M

For a thorough assessment of KAR stock, go to TipRanks’ Stock Analysis page.

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