Australia: Karoon Provides Proteus-1 Progress Report

At 06:00 WST on the 16th of August the 4‐1/8” drilling assembly was being run into the hole on Proteus‐1 well.

Since the last update, scheduled blowout preventer testing was completed, and Proteus‐1ST2 was successfully kicked off from the Proteus‐1ST1 borehole. Proteus‐1ST2 was then drilled to a depth of 4921 metre sin the 6‐1/2” hole section. A 5” liner wast hen run and cemented in place at a depth of 4920 metres.

ConocoPhillipsisthe operator of the jointly held WA‐314‐P, WA‐315‐P and WA‐398‐P Browse Basin permits containing the previously announced Greater Poseidon gas discoveries. Karoon Gas Australia Ltd holds a 40% equity interest in permit WA‐315‐P and WA‐398‐P, and a 90% interest in permit WA‐314‐P.

Proteus‐1 is the third well in the exploration program. Proteus‐1 is located in permit WA‐398‐P on a large tilted fault block approximately 14 kilometres south east of the Poseidon‐1 discovery well.

The Transocean Legend semi‐submersible rig is drilling the exploration well, which is operated by ConocoPhillips.

Upcoming Well Program

The exploration program, operated by ConocoPhillips, plans to utilize the Transocean Legend semi‐ submersible rig for the entire campaign and is expected to continue through 2013.

A minimum of six wells will be drilled during the second phase Browse drilling campaign. The principal objective of the exploration program is to better define the size and quality of the hydrocarbon accumulations within the exploration permits which contain the greater Poseidon trend.

Additional well locations for the remainder of the program will be announced as they obtain joint venture approval.