Karoon Gas (ASX: KAR) has made a second oil discovery with its three well exploration drilling campaign in the Santos Basin offshore Brazil.
Wireline, MDT pressure data, fluid sampling and mudlog analysis confirmed that the Bilby-1 well had discovered oil, adding to the oil find in the earlier Kangaroo-1 well.
Oil is contained within an interbedded sand and shale interval of Maastrichtian age and has been confirmed from sampling of over a 200 metre gross section so far.
Multiple fluid samples have been taken and will be fully analysed when recovered to surface. The well is positioned about 150 metres down dip from the trap crest, allowing for additional prospectivity higher in the structure.
Wireline testing of the discovery is continuing with full results expected over the coming week.
The well will then drill ahead as planned, to a depth of 4,573 metres to intersect hydrocarbon-bearing reservoirs in the Santonian aged interval.
The Bilby‐1 well is located within Block S‐M‐1166. The Bilby‐1 evaluation program is expected to continue through May with results being released as they become available.
The discovery of oil in Late Cretaceous aged reservoirs at Bilby provides additional confidence in the other prospects within Karoon’s Brazilian exploration blocks.
Karoon previously discovered oil in the Kangaroo 1 well, completed in January this year, in Eocene sandstones with a follow up appraisal well expected to be drilled later this year.
Kangaroo-1 is estimated to hold 73 million barrels of oil.
Karoon had $210.4 million in cash as of 31 March 2013.
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