Karoon completes Kangaroo-2 appraisal drilling
Karoon Gas Australia Ltd’s Kangaroo-2 appraisal well, located in exploration Block S-M-1165, Santos Basin off-shore Brazil, confirmed a 250 metre gross (135 metre net) oil column in Paleocene and Maastrichtian aged reservoirs, as announced on 26th November 2014. The successful multi formation production testing program conducted in the Kangaroo-2 vertical well, results announced in Progress Report No 6 and Progress Report No 7, was followed by a down-dip and up-dip side-track program. Karoon is the operator and has a 65% interest in the jointly held Block S-M-1165, Santos Basin, Brazil. Pacific Rubiales Energy Corp holds the remaining 35% interest. The up-dip side-track penetrated oil bearing sands in the Paleocene reservoir section, where 5 reservoir fluid samples were recovered by wireline from a 37 metre gross oil column with a net to gross of 60% and an average porosity of 27%. One sample was opened on surface and contained 2.9 litres of 39 degree API oil. The remaining samples will be analysed in onshore laboratories. Pressure data indicates that the Paleocene oil bearing reservoir is in a separate pressure compartment from those seen in Kangaroo-2. The Maastrichtian reservoir was water bearing where a second fault separates the up-dip Maastrichtian from the oil accumulations in the vertical and down-dip side-track wells. Aquifer pressure data indicates that the Maastrichtian and Campanian sections in this well and all the previous Karoon wells are normally pressured. This supports the presence of a common aquifer which would likely provide water drive. This is important information for production and recovery modelling. No gas cap was penetrated in any reservoir. The lack of a gas cap is positive as it indicates no oil has been displaced by gas in the Kangaroo reservoirs. Kangaroo-2 up-dip side-track-2 was drilled to collect and evaluate information on the characteristics of the Paleocene and Maastrichtian reservoirs in the up-dip location, closer to the salt diaper. The Olinda Star rig will now move to, and commence drilling at the Kangaroo West-1 exploration well (the second firm well in the program) to evaluate the salt-flank prospect on the western side of Kangaroo salt structure, approximately 4.5 kilometers from 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. The salt flank play was first proven by Kangaroo-1 with the intersection of a 76 metre gross oil column and oil recovered to surface from wireline DSTs and further confirmed by the results at Kangaroo-2. The Kangaroo-2 vertical well intersected 250 metre gross (135 metre net) oil column in Paleocene and Maastrichtian aged reservoirs and production tested a stabilised flow rate of 3,300 stb/d through a 1”choke with a flowing tubing head pressure of 430 psia, a gas-oil-ratio of 650 scf/stb and 38 degree API oil. 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. The exploration and appraisal drilling campaign is expected to continue through first half 2015 with the ’Olinda Star’ semi-submersible rig drilling the entire campaign. The rig contract provides Karoon with 2 firm wells plus 2 option wells, and, in the event of a successful drilling outcome in the first 2 wells provides maximum flexibility for further appraisal of the Kangaroo oil discovery, additional drilling at Kangaroo West or possibly targeting other prospects.