Karoon Energy Ltd (ASX:KAR)

Karoon Energy Ltd has announced the sanction of the Who Dat East development, a joint venture operated by LLOG located in the Gulf of America, USA. The development will commence production in the second half of 2028 with an expected initial production rate of approximately 5,900 barrels of oil equivalent per day, net to Karoon, comprising 45% liquids and 55% gas. The capital cost is estimated at US$155-165 million, with US$15-20 million to be spent in the second half of 2026. The project is anticipated to generate an internal rate of return exceeding 20%. Karoon's CEO, Ms. Carri Lockhart, expressed satisfaction with reaching the Final Investment Decision, citing the strong collaboration with the operator LLOG and joint venture partner Westlawn Americas Offshore. The project includes the completion of the 2024 Who Dat East discovery well, a 29-kilometre pipeline to the Who Dat Floating Production System, installation of subsea controls, and minor upgrades to existing infrastructure. Karoon will review its booked Who Dat East Contingent Resources as part of its 2026 year-end reserves and resources review.