Karoon spuds Kangaroo appraisal well (Brazil)

Karoon Gas Australia has announced the spudding of the Kangaroo-2 appraisal well, offshore Brazil, at 2135 hrs BRST on November 5, 2014.

Karoon says that the top of the reservoir section is expected to be penetrated within approximately 3 weeks with the well reaching total depth during December 2014. The Kangaroo-2 appraisal well is located in block S-M-1165 and is the first well in the current Santos Basin exploration and appraisal drilling campaign.

The well is designed to confirm the size of the oil column, the presence and size of a possible gas cap, reservoir continuity and properties, and flow rates for the Kangaroo oil discovery. According to the company, this information will be crucial for assessing the commerciality of the Kangaroo oil field and, upon success, will be the basis for the Front End Engineering and Design (’FEED’) phase bringing the project a step closer to commerciality. The well is located approximately 300 metres updip from Kangaroo-1 and will test a thick reservoir sequence observed in all surrounding wells.

Karoon holds a 65% interest in and is operator of the jointly held block S-M-1165, Santos Basin. Upcoming Well Program The exploration and appraisal drilling campaign, operated by Karoon, plans to utilise the ’Olinda Star’ semi-submersible drilling rig for the entire campaign, which is expected to continue into the first half 2015. Karoon has recently taken possession of the Olinda Star semi-submersible drilling rig from Petrobras. The rig contract provides Karoon with 2 firm wells plus 2 option wells, providing maximum flexibility for further appraisal of the Kangaroo oil discovery, including testing and appraisal of the Kangaroo West prospect in the event of a successful drilling in the first 2 wells.

The second well in the program is the Kangaroo West-1 exploration well. Due to the large size and proximity to Kangaroo, a successful outcome at Kangaroo West-1 would materially add to any possible development of the Kangaroo oil field. The play type for Kangaroo West-1 is proven at Kangaroo-1 with the intersection of a 76m gross oil column and oil recovered to surface from wireline DSTs. Kangaroo West-1 is located on the western flank of the same salt structure as Kangaroo-1 and has the same trap type and reservoir and seal intervals that have been mapped into the prospect from surrounding wells.

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