Karoon Gas (ASX: KAR) has received approval from the Brazilian Government for the farm-out of a 35% interest in four blocks to Pacific Rubiales Energy (TSE: PRE. NVC: PREC, BOVESPA:PREB).
Pacific Rubiales had paid the company US$40 million in September 2012 and agreed to carry up to US$210 million in well costs for the stakes in S‐M‐1101, S‐M‐1102, S‐M‐1037 and S‐M‐1065.
Approval is pending for its stake in S‐M‐1066.
Karoon is currently planning its Phase 2 drilling program on the Santos Basin, Brazil, blocks.
This includes two firm wells and four contingent wells with the first targeted to spud in the first half of 2014.
The Phase 1 program has resulted in two oil discoveries.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.