Karoon Energy (ASX:KAR) said the Who Dat East joint venture on Wednesday approved the final investment decision for the development of the Who Dat East field, located in the Gulf of America in the US, according to a same-day ASX filing.
The project is a one-well development comprising the completion of the Who Dat East discovery well, the construction of a 29-kilometer pipeline to the Who Dat floating production system, minor upgrades to the system, and the installation of subsea controls, the company said. The capital cost, net to Karoon, is estimated to be $155 million to $165 million.
Production is planned to begin in second half of 2028, at an initial gross production rate of around 6,500 barrels of oil per day of liquids and 50 million standard cubic feet per day of gas.
Karoon USA has a 40% working interest in the joint venture, while LLOG and Westlawn Americas Offshore own 40% and 20%, respectively.
Karoon Energy's shares were down nearly 1% in recent Wednesday trade.