Karoon Energy Shares Fall 6.1% on Brazilian Oil Field Shutdown

Shares of Karoon Energy Limited (ASX: KAR) dropped 6.1% after the junior oil and gas producer reduced its production guidance due to an unexpected shutdown at its Bauna oil field in Brazil. The closure, which occurred on December 11, followed an “incident” involving the failure of two anchor chains in the mooring system of the production vessel.

Before the outage, the field was producing 24,000 barrels per day. Karoon Energy stated that production will only resume once repairs are completed on at least one of the failed chains, with work scheduled for next week. The market reacted negatively to the disruption, reflecting investor concerns about the impact on production. At the time of writing, Karoon Energy’s shares continued to face downward pressure.

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