Karoon Gas (ASX:KAR) has started drilling of its first Santos Basin exploration well, with the well being drilled to a depth of 915 metres below rotary table and 20" casing being prepared to run in the hole.
The Kangaroo-1 well is located within Blocks S-M-1101 and S-M-1165 and has multiple targets at several geological levels.
The drilling is expected to continue until February 2013.
After Kangaroo-1, Karoon is likely to drill Emu-1 and Bilby-1 as the second and third wells respectively as part of the Santos Basin exploration drilling campaign.
Completion of these wells satisfy the minimum work commitments for the Blocks.
Karoon’s Santos Basin Blocks are located 112 kilometres off the coast of the Santa Catarina region of Brazil, south of Rio de Janeiro, in 400 metres of water depth.
Karoon was awarded 100% participation in the Blocks during 2008 with the five Blocks totalling 865 square kilometres.
The area is especially attractive in light of several recent discoveries that have been made which have similar geological characteristics to Karoon’s Blocks. These include the Piracuca, Tiro, Sidon, Guaiama, Panoramix and Vampira discoveries all in the same trend as the previously discovered Merluza, Mexilhao and Caravela fields.
These fields have collective in place resources in the billions of barrel of oil equivalent in-place.
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