ConocoPhillips to Resume Drilling Ops at Proteus-1 Soon (Australia)

At 06:00 WST on the 2nd of August preparations were being made to sidetrack the Proteus-1ST1 borehole.

Since the last update the 6-1/2” hole section was drilled from 4583 mRT to 4937 mRT. After a stuck drill string and repeated failure at recovery a decision was made to sidetrack the well. Sidetracking operations are currently well under way and Karoon expects to return to drilling in the coming days having also completed scheduled blow out preventer testing.

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 prog ram. 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.

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.

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, August 5, 2013