Karoon Energy (ASX:KAR) said production has been restored from the SPS-92 well at Baúna following the replacement of the electrical submersible pump (ESP), according to a Monday Australian bourse filing.
SPS-92 is currently producing at a rate of 8,600 barrels of oil per day (bopd), taking total Baúna Project production to around 20,500 bopd, before natural decline, the filing added.
The company said a further production rise of 1,000 to 2,000 bopd is expected once the PRA-2 well is back online, with operations to reconnect the umbilical now underway.
With the Baúna floating production, storage and offloading (FPSO) revitalization and major well intervention campaign now substantially complete, Karoon expects materially lower sustaining capital requirements at Baúna over the next few years, with only modest ongoing investment anticipated, excluding new growth projects, the filing added.
Karoon revised its 2026 total capital expenditure guidance to $178 million to $202 million, from prior guidance of $150 million to $183 million, with Baúna expenditure revised to $89 million to $97 million from $61 million to $74 million.
The company said it plans to start a third on-market share buyback in July, having bought back and cancelled 94.3 million shares at a cost of about $97 million, equivalent to an average price of AU$1.57 per share, following the completion of the second phase of its $75 million buyback program.
The third phase will be conducted at a measured pace reflecting prevailing market conditions and the firm's ongoing capital requirements, and is not expected to exceed 10% of issued capital in a 12-month period. The board retains discretion over the rate, timing, and extent of purchases, it added.
The company's shares rose 3% in recent Monday trade.