Overview Key strengths Key risks Favorable operating costs per barrel of about US$12 in 2024 and US$13.4 in 2025. Smaller reserve base and lower production volumes than those of higher-rated peers. Solid cash flows and low leverage with no meaningful debt maturities until 2028. Risk of reserve depletion, absent successful replenishment initiatives or material asset acquisitions. Liquidity cushion to help withstand industry downturn. Exposure to oil and gas commodity price volatility. Asset and geographic concentration. We view the company's smaller proved reserve base and production level relative to peers, and its asset concentration, as limiting factors for the ratings. Karoon's asset portfolio consists of its 100%-owned Bauna project in the Santos Basin off the coast of Brazil, and its recently
