Rig: Olinda Star

Karoon completes Echidna-1 drilling

Karoon Gas Australia Ltd (“Karoon”) has announced that the company has completed its production tests on the Echidna-1 well in the Santos Basin, Brazil. The test produced a facility constrained stabilised flow rate of 4,650 bopd from the Palocene reservoirs with a flowing well head pressure of 504 psig on a 1” choke. With reference to the Olinda Star contract, Karoon chose not to take up the final well option and will now release the unit.

Karoon confirms oil at Echidna-1

Karoon Gas Australia Ltd (“Karoon”) has announced that wireline testing at the Echidna-1 well confirmed a 213 metre gross oil column across the Paleocene and Maastrichtian ageed reservoirs. On the 20th April 2015, the Echidna-1 well completed its wireline program and was now preparing for the commencement of a production testing program within the Paleocene reservoir section. Karoon Managing Director Mr. Robert Hosking said, “The Echidna discovery represents another significant achievement for karoon. Echidna adds incremental resource to Karoon’s discovered Kangaroo oil field which further supports Karoon’s ambitions to develop an integrated production hub in the Santos Basin.

Karoon hits potential oil and gas at Echidna-1

Karoon Gas Australia Ltd (“Karoon”) has announced that the Echidna-1 well, has intersected an oil bearing section in Paleocene sands as shown on mudlog and logging while drilling data. The mudlog shows elevated gas readings and oil florescence in sandstones. The Echidna-1 well reached its total depth on 12th April 2015 at 2,379mRT, following its spud on the 31st March 2015. Karoon is now proceeding with wireline logging to ascertain the extent of the gross and net columns.

Karoon spuds Echidna-1 well in Brazil

Karoon Gas Australia Ltd (“Karoon”) is pleased to announce the spudding of the third well in the current Santos Basin drilling campaign, the Echidna-1 exploration well, at 1500 hrs BRT on 31st March 2015. The top of the reservoir section is expected to be penetrated within approximately 3 weeks with the well reaching a planned total depth of 2,400mRT during April 2015. The Echidna Prospect is located in exploration block S-M-1102, approximately 20 kilometres northeast of Kangaroo on the eastern flank of a salt diapir in a similar geological setting to the Kangaroo oil field. The 3D seismic at Echidna shows excellent seismic anomalies similar to those seen in Kangaroo-2 where in some reservoirs the oil water contact (flat spot) has been imaged, boosting confidence in the presence of oil. Based on the new higher resolution seismic data, the faulting density in the Echidna prospect appears to be less than that seen in surrounding fields and prospects, reducing the complexity of any potential oil accumulation. The Paleocene and Maastrichtian sands in the Echidna Prospect likely were deposited in shallower marine settings, resulting in an increased likelihood of cleaner and better reservoirs.

Karoon fails to strike with Kangaroo West-1

Karoon Gas Australia Ltd (“Karoon”) has announced that on the 18th March 2015, the Kangaroo West-1 exploration well, located in block S-M-1165, had reached its planned total depth of 3,170m. Based on mudlog and LWD petrophysical data, no hydrocarbons were intersected. Karoon estimates that the drilling of Kangaroo West-1 cost the company approximately USD34 million. The Olinda Star rig will now complete its wireline logging program before moving to the next well location. Karoon has exercised the first of its two well options with the Olinda Star in order to drill the Echidna-1 exploration well in block S-M-1102.

Karoon spuds Kangaroo West-1 well in Brazil

Karoon Gas Australia Ltd (“Karoon”) is pleased to announce the spudding of the second well in the current Santos Basin drilling campaign, the Kangaroo West-1 exploration well, at 0815 hrs BRT on 26th February 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 recommencing drilling in the 17-1/2” hole section. 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.

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.

Karoon announces discovery at Kangaroo-2

Karoon Gas Australia (Karoon) has announced that at 2000 hrs BRST on 25th November 2014 drilling on the Kangaroo-2 appraisal well has been completed at a total depth of 2,369 metres below rotary table (mRT) and a wireline logging program is underway. Five separate oil bearing reservoir sand intervals over the interval 1,660mRT to 2,000mRT in the Palaeocene and Maastrichtian age formation have been penetrated with each interval having a separate oil/water contact. The gross oil column thickness totals 250 metres and no gas cap was penetrated. Work is continuing to assess the impact of the well results on the contingent resource size given the absence of an anticipated gas cap and the impact of shallower oil water contracts in some of the sands. Looking forwards, all operations on the well are expected to be completed within the next four weeks before the rig moves to drill and evaluate the Kangaroo West prospect approximately 2 kilometres distant on the western side of Kangaroo salt structure. The exploration and appraisal drilling campaign, operated by Karoon, is expected to continue through first half 2015. The ‘Olinda Star’ rig is contracted to Karoon for 2 firm wells and 2 option wells and in the event of successful drilling in the first 2 wells, then the contract provides good flexibility for additional appraisal drilling of the Kangaroo West prospect.

Karoon continues to drill ahead at Kangaroo-2

Karoon Gas Australia (Karoon) has announced that at 2000 hrs BRST on 18th November 2014 drilling is ongoing in the 12-1/4” hole section at a current depth of 1,760 mRT. Kangaroo-2 penetrated the target Paleocene reservoir at 1,660 mRT as indicated by increased LWD resistivity readings, elevated gas readings and oil shows seen in mud log cuttings from the reservoir section consistent with reservoir descriptions from Kangaroo-1. Drilling will continue to total depth before running wireline logging designed to confirm the presence and extent of the hydrocarbon column. Coring and flow testing is expected to be undertaken upon a successful outcome from wireline logging. Since the 14 November 2014 Progress Report, BOP and equipment testing was completed, the cement shoe drilled out and drilling in the 12-1/4” hole section commenced. 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 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. 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 up dip from Kangaroo-1 and will test the thick reservoir sequence observed in all surrounding wells. Karoon is targeting a 350 metre plus gross hydrocarbon column in this well. Karoon holds a 65% interest in and is operator of the jointly held S-M-1165 block, Santos Basin. The ’Olinda Star’ semi-submersible drilling rig is drilling the appraisal well. 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 through first half 2015. 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, targeting a net un-risked prospective resource of 330mmbbls. 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.

Karoon receives 'Olinda Star' rig

Karoon Gas Australia is pleased to announce the Company has now taken possession of the Olinda Star Semi-submersible drilling rig from Petrobras. The rig is currently in the Campos Basin and expected to be on location in the Santos Basin running anchors in the next few days with a likely spud date for the Kangaroo-2 appraisal well during the second week of November. The Kangaroo-2 appraisal well is located approximately 300 metres updip from Kangaroo-1 and will test the thick reservoir sequence observed in all surrounding wells. It is anticipated that a 350 metre plus gross hydrocarbon column will be intersected in this well.

Karoon preparing to take delivery of 'Olinda Star'

Karoon Gas Australia (Karoon) is pleased to announce the Company expects to commence the 2-4 well appraisal and exploration drilling campaign during the second week in November 2014. The primary objective of the upcoming drilling program is to drill the lower risk appraisal well in the Kangaroo oil discovery. During July 2014, Karoon contracted the Queiroz Galvao semi-submersible drilling rig, the ‘Olinda Star’ to complete up to 4 wells in Karoon’s 65% owned and operated Santos Basin blocks, S-M-1037, S-M-1101, S-M-1102, S-M-1165 and S-M-1166. The rig is currently completing operations with Petrobras and hand over of the rig is expected in the next 2-3 weeks. The Kangaroo-2 appraisal 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. This information will be crucial for assessing the commerciality of the Kangaroo oil field and, which upon success, will be the basis for the Front End Engineering and Design (’FEED’) phase bringing the project a step closer to commerciality. The Kangaroo-2 appraisal well is located approximately 300 metres up dip from Kangaroo-1 and will test the thick reservoir sequence observed in all surrounding wells. It is anticipated that a 350 metre plus gross hydrocarbon column will be intersected in this well. The second well in the program is the Kangaroo West-1 exploration well, targeting a net un-risked prospective resource of 330mmbbls. 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. 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.

Olinda Star semi-submersible contracted  for Santos Basin appraisal and exploration drilling campaign

Karoon is pleased to announce the Company has executed final agreements with members of the QGOG Constellation S.A. Group for contracting the Olinda Star semisubmersible drilling rig. The Olinda Star has been contracted to complete up to four wells in Karoon’s 65% owned and operated Santos Basin blocks, S-M-1037, 1101, 1102, 1165 and 1166. The rig contract consists of two firm wells (the Kangaroo-2 appraisal wells and the Kangaroo West-1 exploration well) and two option wells. The drilling campaign is expected to commence during September 2014 with the Kangaroo-2 appraisal well. Executive Chairman, Robert Hosking comments: “The primary objective of the drilling campaign is the appraisal of the Kangaroo oil discovery. The Kangaroo-2 appraisal well is designed to confirm the size of the oil column, reservoir continuity and properties, and flow rates for the Kangaroo oil discovery. This information will be crucial for assessing the commerciality of the Kangaroo field, and on success, will be the basis for the Front End Engineering and Design phase.” The rig contract provides Karoon with two firm wells plus two option wells allowing maximum flexibility for further appraisal of the Kangaroo discovery, including testing and appraisal of the Kangaroo West prospect in the event of successful drilling.