Asia
Karoon Energy Well Positioned to Benefit From Elevated Oil Prices Following Brazil Well Repairs, Jarden Says
Karoon Energy (ASX:KAR) is well positioned to benefit from elevated oil prices driven by the Middle East conflict following recent repairs to its Brazilian wells, Jarden said in a Friday note.With all of the company's Brazil oil wells now online, and the field producing at over 22,000 barrels of oil per day, Jarden expects Karoon to focus on optimizing facility uptime.The company recently pushed back the date for resuming full production at its Who Dat oil and gas joint venture in the Gulf of Mexico to the second half of 2027, but production in the interim should see a boost from the recently completed A1 side track well, with the proposed G1 side track scheduled for late this year, the equity research firm said.Karoon reported second-quarter production of about 1.1 million barrels of oil equivalent, down 44% from the prior quarter due to the scheduled maintenance in Brazil and a riser leak at Who Dat, but still broadly in line with Jarden's estimate."We continue to advocate that [Karoon Energy] is the stock to own in a rising oil price environment due to its high leverage," the firm said, adding that the recent escalation in the US-Iran conflict suggests upside to its base case oil price outlook.Jarden maintained a buy rating on Karoon while raising its target price to AU$2 from AU$1.90.Karoon Energy's shares climbed more than 11% in recent Friday trade.
ASX:KAR