Karoon Gas (ASX: KAR) has spudded its second exploration well in the offshore Santos Basin, Brazil, where the first well appears to have the potential to flow at commercial rates.
Kangaroo-1 had encountered a 25 metres of gross oil column in Eocene aged reservoirs with analysis indicating potential for a updip vertical hydrocarbon column of over 300 metres.
The Emu-1 well within Blocks S-M-1102 and S-M-1037 has multiple targets at several geological levels including the Santonian, Campanian and Miocene.
Drilling is expected to continue into the beginning of April 2013 with results being released as they become available.
Emu-1 will be followed by Bilby-1 in Block S-M-1166 that also has multiple targets at several geological levels.
Karoon holds 100% equity on its five Santos Basin blocks but has completed an agreement with Pacific Rubiales Energy to divest 35% participating interest in the Santos Basin exploration blocks.
The Santos Basin has recently yielded multiple oil discoveries, several of which similar geological characteristics to Karoon’s Blocks, and is becoming an exciting area for exploration.
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