Updates with share moves, analyst comment

By Jasmeen Ara Islam Shaikh

June 16 (Reuters) - Australia's Karoon Energy KAR.AX on Tuesday lowered its production forecast for 2026 as a technical issue delayed output at its U.S.-based Who Dat project until next year, sending its shares down more than 15%.

The oil and gas producer now expects total production for the year to be between 7.2 million and 8.2 million barrels of oil equivalent (MMboe), lower than its previous forecast of 8.1 to 9.2 MMboe.

The company's shares tumbled as much as 15.1% to A$1.58, marking their lowest level since late February.

Production via the Who Dat E manifold, a system used to connect and direct flows from wells, will no longer take place in 2026 and is expected to be restored in the second half of 2027, the company said.

The delay led Karoon to trim Who Dat's production forecast to 1.2–1.5 MMboe on a net revenue interest basis from 2.1–2.5 (NRI) MMboe previously. It retained its output expectations for its Brazil operations.

“Reduced production is expected to translate into lower revenue until full production resumes in late 2027," said Cliff Man, chief executive officer at ETF Shares.

Karoon said that a remediation plan is being developed to restore the production.