Karoon Confirms Oil Discovery in Santos Basin (Brazil)

As at 6:00 hours BRST on 24 th of January, 2013, Karoon Gas Australia Ltd had confirmed the discovery of oil at the Kangaroo-1 exploration well.

Kangaroo-1 was drilled, with the Blackford Dolphin semi-submersible rig, to a depth of 3049 mRT and a light oil column has been confirmed by mudlog, wireline petrophysical and MDT pressure  data of the Eocene aged rocks.

A gross oil column of 25 metres and an oil water contact has been established from pressure data interpretation. A wireline program is underway and full results are expected in the coming days. A decision to run a drill stem testing program will be assessed at the completion of the wireline evaluation program.

As this was not the primary target at Kangaroo-1, the well intersected the Eocene reservoir section 300 metres down dip from the trap crest as interpreted on seismic mapping. A potential gross hydrocarbon column of approximately 350 metres is estimated for the entire trap.

The discovery of oil in Eocene aged reservoirs at Kangaroo-1 provides additional confidence in the other prospects within Karoon’s Blocks  including the Emu/Cassowary and Bilby exploration targets.

The Kangaroo-1 well is located within Blocks S-M-1101 and S-M-1165. The evaluation program is expected to continue through February with results being released as they become available.

Upcoming Well Program

The Emu-1 and Bilby-1 wells will be the second and third wells in Karoon’s Santos Basin exploration drilling campaign. These wells are located in blocks S-M-1102, S-M-1137 and S-M-1166. These wells will evaluate multiple targets at Miocene, Eocene, Maestrichtian, Campanian and Santonian  levels. Completion of these three wells will satisfy the minimum work commitments for Block S-M-1101, SM-1102, S-M-1037, S-M-1165 and S-M-1166.

[mappress]
January 25, 2013