Karoon Gas (ASX: KAR) can proceed with Phase 2 exploration and appraisal drilling of its Brazilian offshore oil and gas tenements after receiving approval from regulator Agência Nacional do Petróleo (ANP).
The Discovery Appraisal Plan outlines the firm commitments the company will undertake on blocks S‐M‐1101, S‐M‐1102, S‐M‐1037, S‐M‐1165 and S‐M‐1166 by 31 December 2014 and contingent commitments, to be completed by 31 December 2016.
As per normal Block licencing practices, Karoon was required to relinquish part of the Blocks.
Firm commitments include:
- Drilling the Kangaroo‐2 appraisal well;
- Drill Kangaroo‐2 appraisal well;
- Drill Kangaroo West‐1 exploration well;
- Seismic reprocessing and quantitative inversion (QI) studies on the Bilby discovery;
- Seismic reprocessing and QI studies on the Emu and Emu East prospects; and
- Basin modelling studies
The Kangaroo discovery has been prioritised as the primary focus for the Phase 2 drilling campaign due to its favourable contingent resource size, oil quality and water depth.
Kangaroo has best estimate Contingent Resources of 135 million barrels of oil.
The Kangaroo‐2 appraisal well will be located 290 metres updip of the Kangaroo‐1 exploration well and designed to confirm the size of the oil column and to determine the reservoir continuity and properties in an updip setting. The well will be production tested if successful.
Kangaroo West‐1 represents the same type of play as Kangaroo and as the potential to add meaningful resource to any Kangaroo development due to its proximity.
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