Karoon Gas (ASX: KAR) has spudded the first of up to 5 wells in its 2012 Browse Basin drilling program offshore Western Australia that will better define the size and characteristics of the greater Poseidon structure.
The Boreas-1 well targets a large tilted fault block in WA-315-P about 4 kilometres south of the Poseidon-1 gas discovery that is part of the northeast trending structural high of the greater Poseidon structure.
It will test the extent, presence and quality of reservoirs within the Boreas-1 fault block.
Once Boreas-1 is completed, the Transocean Legend semi-submersible drilling rig will move to drill the Zephyros-1 in WA-398-P, which targets a large tilted fault block about 8 kilometres southwest of the Kronos-1 discovery.
The third well, Proteus-1, is located in WA-398-P on a large tilted fault block about 14 kilometres southeast of Poseidon-1.
Additional well locations for the remainder of the minimum 5 well program will be announced as they obtain joint venture approval.
The Poseidon field was discovered by the Poseidon-1 well in 2009 and has contingent resources of about 7 trillion cubic feet of gas in the Plover Formation sands.
Meanwhile, the Kronos-1 well intersected a separate formation from Poseidon-1 and flowed 26 million cubic feet of gas per day during drill stem testing.
ConocoPhillips is the operator of WA-314-P, WA-315-P and WA-398-P that contain the previously announced Poseidon and Kronos gas discoveries.
The supermajor is funding 80% of the drilling and testing costs for the initial A$125 million of expenditure.
Karoon Gas holds 40% of WA-315-P and WA-398-P, and 90% of permit WA-314-P.