Karoon Gas (ASX:KAR) has expanded its Bilby-1 oil discovery offshore in the Santos basin in Brazil, having established a potential gross column of about 560 metres and a proven oil column of 320 metres.
A total of seven oil samples have been recovered to the surface, with one opened for early oil quality assessment. This has shown 33 degree API gravity oil.
The net oil bearing reservoir is estimated to be approximately 70 metres. Reservoir porosity values up to 23% have been interpreted from wireline logs and additional testing of the discovery is underway, including the coring of reservoir sections to assess reservoir porosity and permeability.
Once the wireline testing is complete, the well will drill ahead to 4573 metres, where Karoon hopes to find additional hydrocarbon bearing reservoirs down to the Santonian level.
The Bilby-1 well is located within Block S-M-1166 and the evaluation program of the well is likely to continue through this month.
The discovery of oil in the Late Cretaceous aged reservoir at Bilby underscores the prospectivity of Karoon's Brazilian exploration blocks.
The company had previously discovered oil in the Kangaroo-1 well, which was completed this January. A follow up appraisal well is expected to be drilled later this year.
Karoon is looking to secure a rig for follow up appraisal drilling on the Kangaroo and Bilby fields and is hoping to engage a rig for drilling Kangaroo-2 and a Bilby follow up well in the fourth quarter of this year.
The three well drilling program--Kangaroo-1, Emu-1 and Bilby-1 well--will be concluded after the evaluation of Bilby-1.
The completion of the wells will also satisfy the minimum work program for Block S-M-1101, S-M-1102, S-M-1037, S-M-1165 and S-M-1166.
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