Karoon: Kangaroo West-1 well spudded (Brazil)

Karoon Gas Australia Ltd has announced the spudding of the Kangaroo West-1 exploration well, the second well in the current Santos Basin drilling campaign, off Brazil, at 0815 hrs BRT on February 26, 2015.

The 26” hole section has been drilled to a depth of 1,106 mRT and preparations are under way to run 20” casing prior to restarting drilling in the 17-1/2” hole section.

According to Karoon, the top of the reservoir section is expected to be penetrated within approximately 3 weeks with the well reaching total depth during early April 2015.

The Kangaroo West-1 exploration well is located in block S-M-1165, on the western flank of the same salt structure as the Kangaroo oil field and has the same trap type and reservoir and seal intervals that have been mapped into the prospect from surrounding wells.

The well is designed to evaluate the salt-flank prospect on the western side of Kangaroo salt structure, approximately 4.5 kilometres from Kangaroo-2. The salt flank play was first proven by the oil discovery at Kangaroo-1 and further confirmed by the appraisal results at Kangaroo-2.

Due to large size and proximity to Kangaroo, a successful outcome at Kangaroo West-1 could materially add to any possible development of the Kangaroo oil field.

Karoon holds a 65% interest in and is operator of the jointly held block S-M-1165, Santos Basin, Brazil.

Upcoming Well Program

The current exploration and appraisal drilling campaign, operated by Karoon, is using the ’Olinda Star’ semi-submersible drilling rig for the entire campaign.

The rig contract provides Karoon with 2 firm wells plus 2 option wells providing flexibility for further
appraisal of the Kangaroo oil discovery, additional drilling at Kangaroo West or possibly targeting other prospects.

The Kangaroo West-1 exploration well is the last firm well commitment, a decision relating to the
first option well is expected in the coming weeks.

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