Karoon Getting Ready to Spud Its First Santos Basin Well (Brazil)

Karoon Gas Australia is set to start the drilling of its first Santos Basin exploration well, Kangaroo-1.

This well has gross mean prospective resource over all target intervals of 272 million barrels of oil, as reported by DeGolyer MacNaughton.

The Blackford Dolphin semi-submersible drilling rig begun mobilization to the Kangaroo-1 well location on the 11th December 2012. The rig is expected to be on location in 5 days after which time it will set anchors and commence pre-spud checks. Spudding is expected in the last week of December.

Kangaroo-1 is located within Blocks S-M-1101 and S-M-1165 and has multiple targets at several geological levels, including the Campanian, Maestrichtian, Eocene and Miocene aged rocks.

Emu-1 and Bilby-1 are expected to be the second well and third wells in the Santos Basin exploration drilling campaign. These wells are located in Blocks S-M-1102, S-M-1137 and S-M-1166, and between them have multiple targets at several geological levels, including the Santonian, Campanian, Maestrichtian, Eocene and Miocene.

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.

December 13, 2012

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