Karoon Provides Drilling Update on Emu-1 Well in Brazil

Karoon Gas Australia Ltd, advises that as at 6:00 hours BRST on the 5th March 2013, the Emu-1 exploration well in the Santos basin, off Brazil, had been drilled to a depth of 2919 mRT.

Since the last report, the 20 inch casing was installed then the 17 ½ inch hole was drilled to 2,673 mRT, routine wireline logging was completed and the 13 3/8″ casing was run. The well is now drilling in 12 1/4″ hole and is at 2919 mRT.

Emu-1 is located within Blocks S-M-1102 and S-M-1037, and has multiple targets at several geological levels including the Santonian, Campanian and Miocene. The well is expected to continue into the beginning of April 2013 with results being released as they become available.

Upcoming Well Program

Bilby-1 is expected to be the third well in the Santos Basin exploration drilling campaign. This well is located in Block S-M-1166 and also has multiple targets at several geological levels, including the Santonian, Campanian and Eocene.

Completion of the three Santos Basin wells will satisfy the minimum work commitments for Block SM- 1101, S-M-1102, S-M-1037, S-M-1165 and S-M-1166.

March 6, 2013

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