Karoon’s Bilby Oil Discovery Offshore Brazil Expanded

The potential size of Karoon Gas Australia Ltd’s Bilby-1 oil discovery offshore Brazil has been expanded with a proven oil column of 320 metres. This has been confirmed by pressure information and physical sampling of oil from the reservoirs.

A total of seven oil samples have now been recovered to the surface, with one opened for early oil quality assessment. The sample has revealed 33 degree API gravity oil with the remaining samples to be sent for laboratory testing.

A potential gross column of approximately 560 metres has now been established, based on the shallowest oil interval down to the proven oil water contact.

The net oil bearing reservoir is estimated to be approximately 70 metres. Reservoir porosity values up to 23% have been interpreted from wireline logs.

The confirmed stratigraphie extent of the oil bearing reservoirs now includes inter-bedded sands in the Eocene, Paleocene and Maastrichtian age rocks.

Wireline testing of the discovery is continuing, including the coring of reservoir sections to assess reservoir porosity and permeability.

The Bilby-1 well is positioned approximately 150 metres down dip from the trap crest. This positioning creates potential for additional prospectivity higher in the structure where good quality water-bearing sand in the well will be above the Oil Water Contact.

After the completion of wireline testing, the well will drill ahead as planned, to 4573mRT where Karoon hopes to encounter additional hydrocarbon bearing reservoirs down to the Santonian level.

The Bilby-1 well is located within Block S-M-1166. The Bilby-1 evaluation program is expected to continue through May with results being released as they become available.

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Press Release, May 10, 2013