Karoon Gas (ASX: KAR) will have to wait on mechanical repairs of the blowout preventer on its Boreas-1 well in the Browse Basin off Western Australia to be completed before drilling can resume.
The mechanical problem was observed while the blow out preventer was stationed at the sea floor, leading operator ConocoPhillips (NYSE: COP) to pull it and the marine riser up for repairs over the weekend.
The company had in April spudded the Boreas-1 well with operator ConocoPhillips (NYSE: COP) that targets the a large tilted fault block in WA-315-P that is part of the northeast trending structural high of the greater Poseidon structure.
Boreas-1, located about 4 kilometres south of the Poseidon-1 gas discovery, was designed to test the extent, presence and quality of reservoirs of the fault block and is part of a Karoon’s 2012 Browse Basin drilling program of up to 5 wells to better define the size and characteristics of the greater Poseidon structure.
It will be followed by the Zephyros-1 well in WA-398-P that targets a large tilted fault block
about 8 kilometres southwest of the Kronos-1 discovery location.
The third well, Proteus-1, is located in WA-398-P on a large tilted fault block approximately 14 kilometres southeast of the Poseidon-1 discovery location.
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 while 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.
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