ConocoPhillips Encounters Gas at Pharos‐1 Exploration Well

As at 0600 WST on 16th July 2014 wireline logging of the Pharos-1 borehole was ongoing. Since the last update, the 6]1/2h hole section was drilled from 4,949mRT to a total depth of 5,220mRT. Final Total Depth of 5,220mRT was reached at 1940 WST on 10th July 2014.

Wireline logging operations commenced on the 12th of July 2014 and are ongoing.

The presence of movable hydrocabons is supported by petrophysical log interpretation, formation pressure gradients and downhole gas sampling. Preparations for a production test will commence on the completion of the wireline logging program.

Pharos-1, the sixth and final well in the Browse Basin Phase 2 Exploration Drilling Campaign is located approximately 9 kilometres north east of Proteus-1 and will be a further test of the Proteus-Crown trend. Pharos-1 is targeting an extension of the discovery made at Proteus-1 which established excellent reservoir quality and condensate bearing gas in the Montara formation.

The exploration campaign, operated by ConocoPhillips, is using the Transocean Legend semisubmersible rig for the final well. The principal objective of the campaign is to better define the size and quality of the hydrocarbon resource within the exploration permits which contain the Greater Poseidon trend.

ConocoPhillips is the operator of the WA-398-P Browse Basin permit in which Karoon Gas Australia Ltd currently holds 40%.

Press Release, July 17, 2014