Australia: Karoon Provides Proteus-1 Progress Report

At 06:00 WST on the 19th of July Proteus‐1 ST1 was drilling ahead in the 6‐1/2” hole at a depth of 4583 metres.

Since the last update the 7‐5/8” liner was cemented and pressure tested before running in hole and drilling ahead with the 6‐1/2” drilling assembly.

ConocoPhillips is the 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 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.

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