ConocoPhillips Spuds Proteus‐1 Well (Australia)

Karoon Gas Australia Ltd advises that the Proteus ‐ 1 exploration well was spudded at 04:28 hours (WDT) today, 25 March 2013.

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

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 40% of the permit WA ‐ 315 ‐ P and WA ‐ 398 ‐ P, and 90% of 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.

Upcoming Well Program

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

A minimum of five wells will be drilled during the exploration program. 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.

Ongoing progress reports

In addition to complying with its continuous disclosure obligations, Karoon proposes to provide fortnightly progress reports during drilling operations.

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Press Release, March 25, 2013