Karoon Gas (ASX:KAR) has confirmed 25 metres of gross oil column with the reservoir holding the potential to flow at commercial rate at its Kangaroo-1 exploration well offshore Brazil.
Post well seismic interpretation and structural mapping suggests additional up-dip potential above Kangaroo-1 with a potential vertical hydrocarbon column of over 300 metres.
The discovery of Eocene aged reservoirs at Kangaroo-1 has a positive impact on other prospects within Karoon's acreage, de-risking them significantly.
The Wallaby prospect, located immediately to the West of Kangaroo-1, has an Eocene level target of similar prospective size to Kangaroo.
Karoon is negotiating to acquire a rig to drill an appraisal well, Kangaroo-2, which will target the crest of the structure to provide the optimal location for reservoir evaluation and production testing of the field.
It is in the process of procuring long lead items, assessing pre-drilling location and filing regulatory approval applications.
The Emu-1 well will be the next well to be drilled in the Santos Basin exploration program followed by Bilby-1.
The completion of these three wells will satisfy the minimum work commitments for Block S-M-1101, S-M-1102, S-M-1037, S-M-1165 and S-M-1166.
Karoon holds 100% equity on these Santos Basin blocks but has completed an agreement with Pacific Rubiales Energy to divest 35% participating interest in the Santos Basin exploration blocks.
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